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Real Estate
E-ALERT
August 2010

Permit Extension Act

On July 31, the legislature passed the Permit Extension Act. The Act generally extends the life of most real estate-related permits and approvals in effect in the last two years for an additional two years. The Act is intended to have the salutary effect of enabling the construction of "shovel-ready" projects that were approved prior to or during the recent economic downturn, but could not get financing to proceed to construction and were in danger of expiring before they could be built.

With only a few specific exceptions, the Act extends the life of real estate permits or approvals issued by a Massachusetts state or municipal government or agency for two years from the date the permit or approval would otherwise expire, provided that the permit or approval was in effect at any time from August 15, 2008 through August 15, 2010. For example, a permit issued on February 1, 2009, which would have expired on February 1, 2011, will now expire on February 1, 2013.

The Act applies to all land use related permits and approvals, including variances, special permits, orders of conditions under the Wetlands Protection Act, and subdivision approvals. The Act does NOT apply to comprehensive permits issued pursuant to Chapter 40B, nor does it extend compliance dates under enforcement orders.

CONTACT

If you have any questions about this alert, please contact the author, Howard P. Speicher, at (617) 589-3829 or hspeicher@davismalm.com.

This article is provided as a courtesy and may not be relied upon as legal advice, or to avoid taxes and penalties. Distribution to promote, market, or recommend any arrangement or investment to avoid or evade taxes, including penalties, is expressly forbidden. Any communication with the author as to its contents, does not, of itself, create a lawyer-client relationship. Under the ethical rules applicable to lawyers in some jurisdictions, this may be considered advertising.