Clean Tech

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Mass Cannabis Sales Up Sharply this Summer Despite High Prices

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According to cannabis industry analysts BDSA, cannabis sales are booming in the Bay State fueled by strong adult-use sales. All totaled, the Mass. medicinal and recreational cannabis industry raked in $92 million in July of this year with year-to-date sales blowing past $412 million. July’s take was a staggering 24 percent higher than June’s.

This is despite the fact that Mass. cannabis prices are among the highest in the country. According to the Boston Globe, marijuana products in Mass. sell for “around double the price of their equivalents in the most mature recreational markets, according to a review of dispensary menus around the country and new data provided to the Globe by several analytics firms.”

The Globe goes on to claim that “cannabis here is even pricier than in other states that legalized the drug more recently; only the nascent and heavily taxed Illinois market approaches the Bay State’s exorbitant prices.”

According to the report, an eighth of an ounce of flower costs $50 to $60 on the Mass. recreational market. And that’s before adding about 20 percent in combined state and local tax. That’s more than twice the cost of cannabis flower in Oregon. The discrepancy in vape prices is similar.

Although lower prices might not result in higher overall sales figures, price drops would likely drive more buyers in from the illicit market in the state resulting in similar revenue streams but reducing the resources spent chasing black market sellers.

“Experts attribute the high cost in Massachusetts to the state’s steep cannabis taxes, seasonal climate (which forces most marijuana cultivation to take place inside expensive climate-controlled facilities with artificial lights), and, most of all, a slow and onerous business licensing process that has limited the number of new producers and retailers opening for business. Four years after voters signed off on legal cannabis, there are just 36 cultivators and 70 retailers operating in the Massachusetts recreational market.” — The Boston Globe

Cannabis sales are expected to jump even higher once new delivery rules are put in place in Mass. The Mass. Cannabis Control Commission recently drafted delivery regulations that call for two distinct delivery license types — one for consumer sales and one for wholesalers. 

Below are some statistics on Mass. cannabis sales according to BDSA:

  • Flower sales accounted for 48 percent of overall monthly revenue in July, up 26 percent over June.

  • Mass. cannabis consumers bought $44.5 million worth of flower in July.

  • Additionally, pre-rolled Joints brought in $9.8 million, or about 11 percent of total cannabis sales — an increase of 28 percent over June.

  • Concentrates accounted for a little over one-quarter of July sales at $23.7 million, with 71 percent of that, or $16.9 million being spent on vape products.

  • Ingestibles (edibles and sublinguals) accounted for 14 percent of overall sales in July at $12.6 million, 85 percent of which was spent on edibles.

Check out New Cannabis Ventures.com for this story.

More “Green Communities” Clean Energy Grants Awarded

We’ve written about the surge in clean energy grants in Massachusetts in previous weeks and the trend continues. Since 2010, the Department of Energy Resources (DOER) has awarded over $136 million to Green Communities in Designation Grants and Competitive Grants.

This week, more than $13 million in Green Communities grants were doled out to 103 municipalities across Massachusetts.

The grants help to support increased energy efficiency and renewable energy projects in the state. The grant program is just one of many programs in the state’s mission to reduce its carbon footprint to zero by 2050.

“The Green Communities program continues to make significant progress in helping municipalities reduce their carbon footprint and save on energy costs. Our administration is committed to supporting clean energy and energy efficiency efforts that make the Commonwealth’s cities and towns cleaner, healthier, and more affordable places to live.” - Mass. Governor Charlie Baker

Click here for additional information on awarded projects and funding amounts. 

In related news, however, a newly released study claims that communities with high proportions of renters and non-English speakers had some of the lowest participation rates in a program called Mass Save.

According to the study conducted last year, just over one in ten eligible households in the city of Chelsea participate in Mass Save programs, with Brockton, Everett, Lynn, Lawrence, and other communities with a high proportion of renters and non-English speakers.

According to the study, more than one-third of homeowners in affluent communities such as Bolton and Carlisle have participated in the program.

NBC Boston has more on this story.

Single-Family Home Prices Jump 15 Percent in August

Low inventory drove the median price of single-family homes in Massachusetts up by 14.3 percent year-over-year to $480,000 in August. That is according to a new report by the Warren Group. 

Here are some detailed statistics on rising home prices in Mass.:

  • 6,675 single-family homes were sold in Massachusetts last month.

  • Year-to-date 36,145 single-family homes have been purchased in Mass. at a median sale price of $435,000.

  • 14,518 condos have been purchased at a median sale price of $417,000.

  • On the mainland, Berkshire County saw the steepest increase at 21.8 percent with a median price of $263,000.

  • Offshore, Nantucket and Dukes Counties both recorded massive year-over-year price increases nearing 50 percent.

  • The median price of condos in Berkshire County grew by 77 percent to $310,400.

  • Single-family home prices in Boston jumped 59 percent with a median price of $2.8 million. 

  • The median price of condos grew by 11.7 percent to $195,450.

  • Condo prices in Boston fell by just under 10 percent compared to August 2019 as buyers fled to the suburbs.

  • Single-family homes in Worcester rose by more than 15 percent to $290,000.

  • Single-family homes in Springfield went up 18 percent to $196,500.

  • Condos in Springfield rose by more than one-third compared to August 2019 to a median price of $148,500.

Read all about it at MassLive.com.

More of the Latest Massachusetts News

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Capital Continues To Flow to Clean Energy Projects

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Over the course of the past couple of years, money has been continually flowing into numerous clean energy projects across the Bay State. This week is no exception. And the trend will continue as the state continues to move towards its net-zero emissions goals. 

Here are a few examples of grants awarded just this past week: 

Mass DOER Awards Ashland More than $70,000 For Energy Efficiency Enhancements

The Massachusetts Department of Energy Resources (DOER) Green Communities competitive grant program was created to facilitate the reduction of carbon emissions by municipal buildings, facilities, and schools.

Under the program, the Town of Ashland has been awarded a $71,021 grant earmarked for energy efficiency upgrades at the Town Hall as well as the installation of an electric vehicle charging station at Ashland Community Center.

Specifically, the town plans to use the funds for the following projects:

  • $63,521 for LED lighting upgrades for Ashland Town Hall. 

  • $7,500 for the purchase and installation of an electric vehicle charging station at the Community Center. 

In a statement on the matter, Town Manager Michael Herbert said:

“We place a high priority on sustainability in Ashland, and are appreciative that the Baker/Polito administration shares in that mindset. The Green Communities program is a good example of the partnership that can exist between state and local government, and these competitive grants help us demonstrate the cost-saving aspects of sustainability as well.”

Read more at FraminghamSource.com.

Worcester Polytech Receives $4 Million DOE Grant for Energy Efficiency Research

The DOE along with the Massachusetts Clean Energy Center has awarded a $4 million grant to Worcester Polytechnic Institute. This grant is earmarked for advanced research and development focused on energy efficiency in industrial drying applications.

According to Jamal Yagoobi, head of WPI’s mechanical engineering department and director of CARD, 1.2 percent of the Country’s energy consumption is used for drying foods, lumber, and paper products. 

Yagoobi says the goal of the project is to “develop state-of-the-art testbeds to increase product quality of various food and forest products while decreasing the energy required to dry them,” and that it could also have a large-scale impact on the chemical industry.

Read all about it at EnvironmentalLeader.com. 

Clean Energy Center Grants $150,000 for Framingham Design Study

The City of Framingham has been awarded $150,000 to fund two design studies aimed at increasing energy resiliency in emergency shelters, fire stations, and public housing in Framingham’s Concord Street and A Street neighborhoods.

Facilities covered by these studies include: 

  • Framingham High School

  • Fuller Middle School

  • McCarthy Elementary School

  • Mass Bay Community College/Farley School

  • Fire Stations #5 and #2

  • A Street Pumping Station.

Read more at the Framingham Source.

$21M Granted for I-495, Mass Pike Interchange Overhaul

Transportation is another area of the Massachusetts economy seeing an influx of grants. The U.S. Department of Transportation recently awarded a $21 million grant allocated for improvements to the I-495 and Massachusetts Turnpike interchange in Hopkinton under a program called “Better Utilizing Investments to Leverage Development,” (BUILD). The funds will be used to address safety issues and improve traffic flow.

According to MetroWest Daily News, the interchange is used by nearly half of freight trucks entering Eastern Massachusetts.” Moreover, approximately 75,000 commuter vehicles use the interchange daily.

The report can be found at MetroWest Daily News, along with these related reports:

BlackbirdGo Cannabis Delivery Launches

A new cannabis delivery service called BlackbirdGo has launched in Massachusetts. Blackbird is a cannabis business software company owned by TILT Holdings. The company has partnered with Commonwealth Alternative Care to offer cannabis delivery and curbside pickup services via its online marketplace. 

Blackbird currently works with over 400 wholesale and retail operators across Nevada and California. And, According to Blackbird, the operation is currently the leading cannabis delivery service in Nevada operating a fleet of more than 100 trucks making 5,000 deliveries per month. 

TILT says the company plans to partner with additional Mass. dispensaries and to expand its marijuana delivery services across Massachusetts.

THC net has more on this story. 

Adult Use Dispensary Opening in Arlington 

Mass. licensed cannabis seller Apothca has opened a new dispensary in Arlington Heights at 1386 Massachusetts Ave. beating both Cambridge and Somerville to the punch. Apothca has also relocated its medical dispensary from its Water Street location to the Arlington Heights location.

More of the Latest Massachusetts News:

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Residential and Commercial Rents Drop in Boston and Cambridge 

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The big news this week is about Boston’s plummeting residential and commercial rental market. Landlords are reportedly “panicking” as rents nosedive in Boston and Cambridge due to an exodus of renters. 

The hardest-hit neighborhoods are seeing as much as a 7% drop. Office landlords are not faring much better as commercial rents continue to plummet as well.

The vacancies and falling rents are the result of a combination of a drastically reduced student population, more businesses allowing employees to work from home, and more rentals coming online.

Here are some statistics on the drop in residential rents:

  • There has been a 7% to 9% increase in vacant apartments since COVID-19 hit.

  • Rents have fallen by 6.9% in Boston’s central business district.

  • The most expensive neighborhoods in Cambridge and Boston have seen prices drop by about $150 a month on average.

  • 1,300 three-bedroom apartments are available in Allston alone, 1,200 more than a year ago.

  • 20% of landlords are now offering “sweeteners” and concessions, up from just 6% pre-pandemic.

In order to sweeten deals, landlords are adding bonuses such as free parking, dropping cosigner requirements, waiving security deposits, and giving away up to three months gratis, according to Clark.

Adin Perera, a senior market analyst with the CoStar Group, which runs the listing site Apartments.com had this to say about the situation:

“Until cities are ready to run at full-tilt again, we’ll see demand and rent struggle because they live, work, play dynamic that boosted not just Boston, but all major dense cities … has gone away amid the pandemic. It’s really a good time to be a renter. You can get a great apartment in Fenway, Back Bay or Beacon Hill for Allston-Brighton prices,” said rental agent Mark Coronado of East Coast Realty.”

And Zillow Group economist Joshua Clark commented:

“This is a story about competition. It’s been stacked against renters for a very long time and for the first time in about a decade, we’re seeing a flip. There are less people out there looking for rentals and a lot of people looking to fill up their vacancies.” 

These are the neighborhoods with the steepest declines in rent:

  • Alewife down 7% to $2,729 from $2,936.

  • Harvard/MIT drops 6.46% to $3,144 from $3,362.

  • Downtown Boston slips 6.31% to $3,518 from $3,755.

  • South Boston/Seaport falls 5.19% to $3,651 from $3,851.

  • JP/Roslindale/West Roxbury down 4.88% to $2,191 from $2,303.

The full list can be found here.

To the chagrin of Boston’s landlords, a U.S. District Court Judge Mark L. Wolf has said he is likely to deny landlords’ attempt to block the Massachusetts eviction moratorium. The moratorium allows renters to stay in the apartments if they can’t afford to pay rent due to COVID-19. 

The moratorium took effect in April. And Baker extended the moratorium to Oct. 17. A Massachusetts Supreme Judicial Court sided with the Baker administration in August, with the caveat that landlords can still sue for breach of contract or take other legal action.

The moratorium drew the ire of a coalition of landlords who claim that some tenants who can afford to pay rent are taking advantage of the moratorium and that the situation could have a snowball effect if landlords, in turn, cannot pay their mortgages.

Read more about the moratorium matter at MassLive.com.

Meanwhile, commercial rents have plummeted as many businesses “reconfigure or do away with traditional office spaces altogether and as new construction continues to come online amid a stunted economy and waning demand,” according to a Boston Herald report.

Aaron Jodka, managing director of research and client services at Colliers International had this to say:

“The second quarter saw the worst negative absorption rate in Boston’s history. There were more tenants moving out of office space during that time than we’ve ever seen before. The only comparable time periods would be during Sept. 11 and the tech bust in the fourth quarter of 2001.”

Here are some statistics provided by CoStar Group:

  • Median rents for office listings were up 3.6% in January and 2.9% in February, then dropped 2.8% in March and 9.1% in April.

  • In May and June, rents rebounded slightly, increasing by 2% and 2.8%, respectively.

  • Rents dropped again by 2.8% in both July and August.

To make matters even worse, an additional 900,000 square feet of sublease space has come online since March 31.

The biggest spikes in available subleases fall in the Financial District, Back Bay, the Seaport District, East Cambridge, and Kendall Square, accounting 3.5 million square feet of the region’s sublease space.  

South Boston Edison Moves Forward with Power Plant Redevelopment Project 

Developers seeking to replace the deserted power plant along L Street in South Boston have said they hope to move forward with a project to develop condos, office space, hotels, and retail spaces on the site. The Boston Planning & Development Agency voted to allow the project to progress last month. 

The project, to be undertaken by Redgate and Hilco Redevelopment Partners is planning the following in the 1.8 million-square-foot development:

  • 635 apartments and condos

  • 960,000 square feet of office and research space

  • 80,000 square feet of retail space

  • 240 hotel rooms 

  • Up to 1,214 parking spaces.

Not everyone is in favor of the plan. Several elected officials have taken issue with the project including State Sen. Nick Collins who called the move “premature,” citing traffic, open space, waterfront access, and impact on the nearby Conley Terminal as the top concerns.

To further complicate matters, the Massachusetts Port Authority has the right to deny any residential development on the power plant site. A spokeswoman for MassPort commented: “There is an ongoing process to see what the development will be on that site. MassPort has committed to a public process should residential be approved there.”

According to the report in the Boston Herald, the project is far from a done deal as the BPDA’s recent decision is only “the first in what will be a long series of meetings, approvals, and chances for public comment.”

Hearings could begin next month. Meanwhile, CoStar’s Perara predicts a full recovery for Boston’s residential and commercial markets could take three to four years.

More than 100 Municipalities Receive Green Communities Grants

A total of 103 Massachusetts municipalities in the Greater Lowell and North Central Massachusetts regions have been awarded a combined $13 million in Green Communities 2020 competitive grants. 

A total of 271 Massachusetts cities and towns have met the criteria to earn the Green Communities designation, making them eligible for grant funding under the Green Communities Act.

The grants are being awarded to municipalities that have already received the designation of Green Communities under a Department of Energy Resources competition. 

These are some of the communities that recently received grants:

  • Ashburnham, $10,620 

  • Chelmsford, $100,000

  • Littleton, $200,000

  • Lancaster, $200,000

  • Leominster, $68,490

  • Lunenburg, $69,361

  • Pepperell, $167,129

  • Tewksbury, $68,382

  • Westford, $95,000

The Department of Energy Resources has awarded over $136 million to Green Communities Since 2010.

A complete list of grant recipients can be found here.

More of the Latest Massachusetts News

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Labor Day Progess

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Massachusetts Transportation Collective Forms to Reduce Construction Costs 

The Massachusetts Bay Transportation Authority recently unveiled a collective purchasing agreement among the Metropolitan Area Planning Council (MAPC), the Massachusetts Department of Transportation (MassDOT), and Massachusetts Port Authority (Massport), along with 13 area municipalities representing more than one-fifth of the state’s total population.

Cooperation between the public transportation agencies is intended to bring down costs of several improvement projects including bus and bike lane road markings.

MBTA General Manager Steve Poftak says of the collective:

“This is another example of the region working together to move everyone forward. Increasingly, we all need to collaborate in new ways to better serve our riders and constituents. This agreement will ensure that public agencies like the MBTA will be using their funds as cost-effectively as possible, especially throughout the current public health and economic crisis.”

And MAPC Transportation Director Eric Bourassa stated:

“Establishing more bus and bike lanes is critical for the region as we continue to re-open the economy during this pandemic. By reducing costs for the MBTA as well as cities and towns, we can stretch our public dollars further to make public transit and cycling better and safer.”

The MBTA has estimated that the joint effort could save taxpayers more than $2 million in 2021 and make regional roadways more reliable for tens of thousands of daily bus riders.

Mass Transit Magazine has more on this story.

MBTA Lowers Fares For Charlie and Everyone Else 

After increasing fares several times in the past few years, the Massachusetts Bay Transportation Authority has now lowered both cash and CharlieTicket fares to match CharlieCard prices. The fares have been lowered to $2.40 for rapid transit — a reduction of 50 cents from the previous fare. 

The reduction was instituted due to budget issues caused by decreased ridership. According to an MBTA financial report, the MBTA is facing an estimated $300-million budget deficit. 

Jarred Johnson, chief operating officer, and development director at TransitMatters, an organization advocating for affordable transportation, says the fare change will benefit lower-income riders, riders without bank accounts, and recent immigrants.

In an email to the Daily Free Press, Johnson states:

“The real issue isn’t costs, it’s that the T needs more revenue and needs to be less reliant on fares to be more resilient for future disasters or pandemics. It is often still difficult for bus riders to reload their card if there’s not a train station close by.”

Marc Draisen, executive director of the Metropolitan Area Planning Council, hopes the change will prevent the agency from having to lay off workers or raise fares. 

Read all about it at Daily Free Press. 

Mass DOER Finalizes Solar Incentive Program 

The Mass. Department of Energy Resources has issued final regulations intended to strike a compromise between various stakeholders and environmental advocates by maintaining land-use restrictions and expanding SMART. 

SMART is a long-term sustainable solar incentive program sponsored by Eversource Energy, National Grid, and Unitil Corporation. 

The program originally covered 17 projects totaling 53.273 megawatts (MW) of solar photovoltaic (PV). It has since been made available to solar PV projects of all types and sizes, up to 5 MW. 

Lexology.com reports:

Under the new rules, Solar projects on private property, either “owned or operated by a municipality or where the project’s owner has assigned 100% of the output to the host municipality” will be considered as public entity Solar Tariff Generation Units —  a “raised structure allowing for continuous growth of crops underneath the solar photovoltaic modules, with height enough for labor and/or machinery as it relates to tilling, cultivating, soil amendments, harvesting, etc.; and grazing animals.” 

Under DOER’s finalized rules, the SMART program will double the size of solar projects from 1.6 gigawatts to 3.2 gigawatts. Changes to SMART also increase prices for public entities developing solar, from 2 cents to 4 cents per kilowatt-hour. 

The SMART program is one keystone of the state’s goal to become the most energy-efficient state in the nation, according to DOER Commissioner Patrick Woodcock. Woodcock believes the guidelines will “allow for Massachusetts to maintain its national leadership role in the solar industry while protecting the Commonwealth’s natural resources.”

Lexology.com has a more extensive report.

Cannabis Commission Approves Cannabis Delivery Rule Changes 

The Massachusetts Cannabis Control Commission announced several changes to its delivery license model including dividing delivery licenses into two categories — courier-style licenses and wholesale licenses. 

The new rules don’t require license holders to maintain a brick-and-mortar location and allow delivery businesses to purchase inventory directly from cultivation and manufacturing facilities rather than from retailers. 

Interestingly, applications for delivery businesses are exclusively limited to economic empowerment applicants and social equity program participants for a period of three years.

After Friday’s meeting, Commissioner Shaleen Title tweeted: 

“With this change creating unprecedented exclusivity for social equity + economic empowerment businesses, Massachusetts might be back on track to be the first state with a functioning national model for equity. Very grateful to all who took the time to comment, and my colleagues.” 

According to MJBizDaily, “Massachusetts is one of the only states in the nation to set aside marijuana delivery licenses exclusively for minority entrepreneurs.”

To qualify for a social equity license, applicants must be located in an area disproportionately impacted by the war on drugs or have a child or spouse with multiple cannabis convictions.

Additional rule changes were also unveiled after last week’s meeting. 

To learn more, check out these sources:

Massachusetts Airports Rake in $9.8 Million In Infrastructure Grants 

Eleven Mass. airports will be the recipients of a total $9.8 million grant from a $1.2 billion Federal Aviation Administration (FAA) fund. The fund is intended to beef up airport safety and infrastructure across the U.S. All told, more than 400 airports across the country will benefit from the influx of capital. 

U.S. Secretary of Transportation Elaine L. Chao announced the grants stating:

“This $1.2 billion federal investment will improve our nation’s airport infrastructure, enhance safety, and strengthen growth in local communities, which is especially important as the economy recovers from COVID-19.”

Following is a list of Mass. airports and the allocation of funds:

  • Boston Logan International Airport to support a Voluntary Airport Low Emissions Program (VALE): $1,365,716 

  • Chatham Municipal Airport to conduct an airport-related environmental study: $347,000

  • Barnstable Municipal-Boardman Airport in Hyannis to improve the aircraft rescue and firefighting vehicle building: $506,700 

  • Mansfield Municipal Airport to remove obstruction markings and lighting: $216,300 

  • Harriman-and-West Airport in North Adams to install perimeter fencing: $660,898 

  • Norwood Memorial Airport to conduct an environmental study: $283,332 

  • Pittsfield Municipal Airport to conduct an environmental study: $66,581 

  • Plymouth Municipal Airport to reconfigure an existing taxiway: $3,986,590 

  • Provincetown Municipal Airport to install taxiway lighting and purchase an emergency generator: $1,736,682 

  • Southbridge Municipal Airport to rehabilitate the runway and conduct an airport wildlife hazard assessment and a miscellaneous study: $217,000 

  • Martha’s Vineyard Airport to conduct an environmental study: $366,016

According to the American Journal of Transportation, $13.5 billion has been granted to America’s airports to improve infrastructure and safety since January 2017,  with $10 billion being delivered in 2020. 

Mass. Credit Union Partners with Cannabis Payment Processor

Benzinga reports that GFA Federal Credit Union has announced a new partnership with cannabis payment processor Hypur. The partnership will bring much needed digital payment options to Mass. dispensaries.

Hypur’s chief revenue officer, Tyler Beuerlein, told Benzinga:

“Digital payment solutions like Hypur Pay are now essential to helping cannabis businesses thrive and empowering cannabis consumers to buy products when and how they want to, just as they would for any other purchase.” 

This is an exciting development for Mass. dispensaries. 

Learn why at Bezinga.com.

More of the Latest Massachusetts News

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High Unemployment Rates Sticking Around

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Heading into September, the outlook for recovery from pandemic safety measures continues to improve in Massachusetts. In particular, three key metrics from the Dept. of Public Health illustrate this fact:

  • The seven-day average of the positive test rate is at an all-time low of 1.4 percent. 

  • The three-day average of hospitalizations is 371, only 3 percent above the 359 low. 

  • The three-day average number of deaths attributed to the pandemic stands at 13.

However, there are still some clouds distinctly lacking in silver linings. 

For example, Massachusetts still has the highest unemployment rate in the country. And chipping away at the numbers has proven to be a challenge. 

  • 16,709 residents filed unemployment claims last week, up from about 13,000 last week.

  • 12,282 residents applied for Pandemic Unemployment Assistance benefits — a massive rise from 8,750 last week.

That being said, fiscally speaking, it turns out that the city of Boston is better off than most U.S. cities. A recent study estimated revenue shortfalls for 150 major U.S. cities. And authors of the study claim that Boston will experience the least severe drop in revenue.

According to a report by The New York Times, Boston is looking at a meager 2 to 4 percent decline for the fiscal year 2021. 

MBTA Facing potential $400 Million Budget Shortfall

Although an influx of federal funds is helping to stabilize public transportation, a massive reduction in the number of MBTA riders could result in a $400 million shortfall for the agency. That is according to an analysis by the Massachusetts Taxpayers Foundation. And that number assumes that fare revenue rebounds by 75 percent in the next year — which is highly speculative. 

Although some bus routes have seen a greater than 50 percent increase in ridership since springtime lows, most are still floundering around at a miserable 20 percent of previous ridership. Commuter rail trains are faring even worse.

The MBTA’s day-to-day budget is currently about $2.3 billion. And that figure is expected to grow slightly in the coming year. However, with the estimated drop in ridership, revenue is expected to barely top $2 billion.

The Boston Globe has a detailed report on this topic.

Rising Sea Levels Threaten $100 Billion In Essex County Real Estate

As if a global pandemic is not enough to make our collective heads spin, climate change and rising sea levels threaten to decimate some Mass. coastal communities. Massive flooding and beach erosion could conceivably wipe out more than $100 billion in real estate in Essex County alone. That is according to a recent report by a leading conservation group titled “State of the Coast” 

Of great concern are the county’s 50-plus miles of aging sea barriers. It’s estimated that upgrades to sea walls could run up a $88 million repair bill. 

The report also also warns that by 2030 more than 600 North Shore buildings could experience daily tidal flooding. And upwards of 7,000 waterfront buildings could see flooding should there be a 100-year-storm event. And with storms becoming more powerful due to climate change that possibility is certainly not out of the question. 

The ominous projections are based on a flood risk model developed by Bourne-based environmental consultancy firm, the Woods Hole Group.

To give some sense of the magnitude of the problem, according to its trustees, Crane Beach in Ipswich has lost the equivalent of 84 football fields of sand since the 1950s. And it’s estimated that coastal homes in Salisbury could be worth $200,000 to $300,000 more if not for more frequent tidal flooding.

The report covers 13 North Shore communities: Swampscott, Marblehead, Salem, Beverly, Manchester-by-the-Sea, Rockport, Gloucester, Essex, Ipswich, Newbury, Rowley, Newburyport, and Salisbury.

Boston.com has more on this story.

Offshore Wind Firms To Pay $33m To Lease New Bedford Terminal

The New Bedford Marine Commerce Terminal is set to become the primary staging and deployment base for the construction and installation of offshore wind projects being developed by Vineyard Wind and Mayflower Wind. 

According to South Coast Today, the lease agreements “commit the facility to full-time offshore wind work from 2023 into 2027 and are worth more than $32.5 million.”

Governor Charlie Baker had this to say about the development:

“These lease agreements with Vineyard Wind and Mayflower Wind are another major milestone for offshore wind in Massachusetts. With this announcement, the Commonwealth continues its national leadership on clean energy and ensures Massachusetts workers will benefit from the jobs and economic opportunities provided by this new industry.”

South Coast Today describes the terminal this way:

“The first port in North America specifically purpose-built to support the staging and installation of offshore wind components, the terminal has been engineered to sustain mobile crane and storage loads that rival the highest capacity ports in the world.”

According to Vineyard Wind CEO Lars T. Pedersen:

“Once construction begins, the Marine Commerce Terminal will become the birthplace of an entirely new industry, with jobs and opportunities for local residents that simply don’t exist today. We’re fortunate to have such great partners both locally in the City and Port of New Bedford and in the Baker-Polito Administration. We look forward to being a growing part of the community.”

And Michael Brown, President and CEO, Mayflower Wind says:

“Mayflower Wind would like to thank the commonwealth and City of New Bedford for their leadership and vision in establishing the New Bedford Marine Commerce Terminal. We look forward to creating thousands of good-paying jobs during the construction and installation of our project, anchored around this critical infrastructure investment.”

As we’ve been reporting over the past few months, in order to combat climate change, Massachusetts has set an ambitious net zero emissions target. Offshore wind is expected to play a key role in achieving that goal while creating an estimated 2,000 to 3,000 jobs over next 10 years. 

The new wind plants are expected to provide up to 1,600 megawatts of wind power to Massachusetts. 

More of the Latest Massachusetts News

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Unemployment and Housing Concerns Dominate Massachusetts News

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Unemployment figures continue to be the measure of progress in fighting economic damage caused by the coronavirus pandemic in Massachusetts. According to a report by CBS News, the number of new unemployment and Pandemic Unemployment Assistance claims fell once again last week in Massachusetts. 

The state reported just over 15,200 new claims, or about 4,400 fewer than the previous week. Further, the number of independent contractors and “gig economy” workers seeking Pandemic Unemployment Assistance dropped by 5,000 to just under 10,000.] Learn more about applying for unemployment benefits in Massachusetts here.

Census Bureau Report Suggests One In Five Mass Renters Fear Eviction 

Although the state continues to inch in a positive direction nearly a half-year into the coronavirus pandemic, many challenges still remain. For example, a recent report by the U.S. Census Bureau suggests that more than 315,000 Mass. renters fear they are on the verge of eviction — or about one in five renters. The Census Bureau’s Household Pulse survey estimates state-by-state impacts from the pandemic on a weekly basis.

According to the data, as of mid-July, little more than half of the renters in the state are fully confident that they would be able to pay their rent in August. A rash of evictions would ultimately have a ripple effect on the state’s economy as landlords struggle to pay mortgages and banks foreclose on properties.

Recent executive action by Gov. Baker has initiated a moratorium on evictions and foreclosures until Oct. 17. Although the moratorium does not exempt renters or property owners from paying rent or mortgages, it does prevent removal for failure to pay if COVID-19 created a financial hardship.

Here are some statistics gleaned from the Census Bureau report:

  • Nearly one in five renters in the state have no confidence or only slight confidence they could pay August rent. 

  • 368,000 are moderately confident they can cover their rent.

  • 751,000 have high confidence they can pay rent.

  • 78 percent of eviction filings in Boston occur in Census tracts where a majority of the population is nonwhite.

  • White tenants were about 2.8 times as likely to have high confidence as black tenants and about 1.7 times as likely as Hispanic or Latino renters.

  • About 42 percent of Black renters and 30 percent of Hispanic or Latino renters have no or only slight confidence in covering housing costs for another month, or more than 30 percent higher than white renters.

You can read more on this story in this report by CBS Boston.

Mass. Clean Peak Energy Standard Promotes the Use of Clean Energy During High Demand Periods

A new clean energy program — the first of its kind in the nation — is aimed at giving a leg up to clean energy sources by promoting the use of clean and renewable energy sources during times when demand is the highest. 

Gov. Baker says the Clean Peak Energy Standard (CPS) will also reduce greenhouse gas emissions, lower electricity costs, and generate revenue for resources such as energy storage systems needed to provide electricity when demand is typically highest.

Under the program, utilities that generate energy during specified times of the day will generate Clean Peak Energy Certificates (CPEC). Then electricity suppliers will be required to purchase a minimum amount of CPECs each year based on a percentage of electricity sold. 

The governor had this to say during his announcement:

“To combat climate change, we need to change the way we consume our energy, the resources we use, and when we use them. This first-in-the-nation program is an innovative approach to create a cleaner and more affordable energy future for residents and businesses across the Commonwealth, while serving as a national role model for making meaningful reductions in greenhouse gas emissions.”

Energy and Environmental Affairs Secretary Kathleen Theoharides also said CPS will enable the state to further reduce emissions. 

“By ensuring the use of clean energy resources at the historically dirtiest and most expensive times of the day, we will be able to build on our progress in meeting our net-zero emissions goal and building a clean energy future for Massachusetts.”

U.S. Energy Storage Association (ESA) Chief Executive Officer Kelly Speakes-Backman called the program innovative:

“The U.S. Energy Storage Association (ESA) commends the Baker-Polito Administration as it launches the first-in-the-nation Clean Peak Energy Standard (CPS). The administration pioneered this innovative, new regulatory tool to reduce the costs and environmental impacts of periods when electricity demand is the highest and generation tends to be the most polluting. During these peak periods, CPS drives the use of energy storage resources to deliver clean energy where it’s needed, when it’s needed. CPS is an important step toward making the grid more resilient, efficient, sustainable and affordable. ESA looks forward to working with Massachusetts officials and stakeholders to ensure its success and to provide a replicable model for other states.”

The Clean Peak Energy Standard application process is scheduled to begin on August 17, 2020. And MassCEC and DOER plan to hold a stakeholder informational session on August 10, 2020. 

The CPES program which was first proposed in Governor Baker’s 2018 Environmental Bond Bill will be managed by the Massachusetts Clean Energy Center (MassCEC).

Go here more information on the  Clean Peak Energy Standard program.

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Mass. Economy Sees Worst Quarter Ever

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Although there are many indications that the economy is beginning to see signs of a slow recovery, the numbers are in for Q2. And, frankly, they aren’t good. Facts and figures show that Massachusetts’ economy, along with the rest of the nation, has seen its worst quarter ever. 

Here are some of the dismal statistics:

  • Mass. real gross domestic product (GDP) declined at an annualized rate of 43.8 percent in April, May, and June — the largest drop in history according to MassBenchmarks.

  • Payroll employment fell by 16.5 percent in Q2 — an annualized rate of decline of 51.4 percent.

  • Wage and salary income in Massachusetts fell 11.2 percent — an annualized rate of decline of 37.7 percent.

  • Mass. had the highest unemployment in the nation at 17.4 percent in June.

  • Mass. residents filed nearly 20,000 new unemployment claims for the week ending July 18.

Read more at MassLive.com.

Mass. Issues Strict Travel Restrictions 

Gov. Charlie Baker has signed off on a new executive order requiring travelers to fill out a travel form prior to arrival when entering the state from another state considered to be at high-risk for COVID-19. 

Moreover, a quarantine period of 14 days will be required unless travelers can show a negative COVID-19 test result issued within the previous 72 hours. 

The fine for violating the order is $500 a day. The order goes into effect Aug. 1.

You can read the full order and find more details here.

Cannabis Social Equity Proposal Calls for Loans Rather than Grants

Mass. lawmakers are contemplating a measure that aims to create a loan program designed to promote social equity within the state’s cannabis industry, whereas several other states with similar programs have offered social equity grants.

Detractors of the plan claim that it only offers minorities more debt instead of the promised equity. This comes at a time when there has been much criticism over the increasing lack of social equity in the state’s cannabis programs.

The current plan calls for 10 percent of cannabis tax revenue to be applied toward loans for social equity and economic empowerment. 

Comparing the plan to social equity programs in other states, California awarded $10 million in equity grant funding in October 2019 and an additional $30 million in April 2020. And Illinois devotes 25 percent of cannabis taxes to social equity grants. 

Mass. Cannabis Commissioner, Shaleen Title, in an interview with Boston Public Radio stated that she is ‘embarrassed’ by industry inequities as only three of 70 approved economic empowerment applicants have opened for business.

Meanwhile, Mass. cannabis regulators are seeking input on potential changes to regulations pertaining to both the recreational and medical cannabis programs in the state. The Mass. CCC will hold a virtual public hearing on August 3, 2020 at 10:00 AM. It will also be accepting written comments on the regulations through August 14.

Mass. Offers Commercial, Industrial, and Residential Buildings Financing for Energy Improvements

MassDevelopment and the Massachusetts Department of Energy Resources have announced the availability of financing for energy improvements on commercial and industrial buildings, as well as multifamily properties with five or more units and buildings owned by nonprofits. The program is being run through Property Assessed Clean Energy (PACE) Massachusetts. 

Under the program, property owners will be able to finance energy efficiency upgrades, as well as renewables, and gas line extensions. The financing would be repaid via higher tax assessments on the properties.

MassDevelopment President and CEO Lauren Liss had this to say:

“Together with the Massachusetts Department of Energy Resources, MassDevelopment is pleased to administer PACE Massachusetts, a new low-cost, long-term financing tool for property owners looking to reduce energy consumption through capital improvements. We continue to encourage cities and towns to ‘opt in’ and enable property owners across the state to take advantage of this program.”

You can learn more about the program at FraminghamSource.com.

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Eviction Moratorium, Housing and Transportation Dominate News

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This is the first week since it took hold in Massachusetts that the majority of the headlines are not about the pandemic. Hopefully, that’s a good sign. Check out last week’s news for a plethora of encouraging facts and figures related to Mass. COVID-19 infections and unemployment.

The big story this week is the extension of the moratorium on evictions and foreclosures until October and a lawsuit against the state to overturn the measures.

Gov. Baker Extends Moratorium On Evictions and Foreclosures Until Mid-October

The moratorium on evictions and foreclosures put in place in Massachusetts has been extended through at least Oct. 17. The proclamation by Gov. Baker comes weeks before the original expiration date of Aug. 18. Obviously the move has caused mixed emotions. 

While affordable housing advocates breathed a sigh of relief, landlords and lenders are furious and suing the state.

The sigh of relief by recently unemployed renters and homeowners may be short-lived. City Life/Vida Urbana Executive Director Lisa Owens told the Herald:

“This does give an additional two months of security and protection and that’s important for people, but unfortunately what that means is the moratorium will be lifted … right in the middle of an expected second surge and when people are likely facing higher levels of unemployment than they are facing now.”

Housing advocates are working to pass a “no brainer” bill that would halt evictions and freeze rents as far into the future as one year from the time that the governor lifts the public health emergency.

Renters are still obligated to pay rent under the moratorium. However, some renters who have no emergency savings and might be using the moratorium as a reason to not pay rent.  

Read more about the moratorium extension at The Boston Herald.

Landlords and Lenders Fight Back Against Eviction Moratorium

The moratorium on evictions is obviously upsetting to landlords and lenders some of whom are struggling financially as a result. Many property owners are already considering abandoning properties.

In response, attorney Richard Vetstein, representing a coalition of Mass. landlords has filed a lawsuit seeking to overturn the moratorium. The complaint, filed in a federal court, lists the defendants as the state of Massachusetts and the Executive Office of Housing and Economic Development. 

Another possible solution to the dilemma would be a bailout of property owners, renters, and/or homeowners. A $20 million relief fund has already been established to help renters and homeowners. However, that figure falls far short of being a cure for the problem. Gov. Baker says his administration is looking into increasing that fund. 

Real Estate Boston has more on this story.

Mass Eviction Moratorium at Least Partly Responsible for Drop In Home Sales and Condo Prices

For the third straight month, home sales and prices have dropped in Massachusetts. Many attribute the slowdown to a combination of factors including uncertainty about the economy, high unemployment, increased red tape, and the impact of the eviction moratorium. 

According to The Warren Group, publisher of Banker & Tradesman:

  • Sales of single-family homes and condos dropped by 25 and 30 percent respectively. 

  • The median price for a single-family home rose by 2.6 percent year over year to $440,000.

  • Condo sellers reported a 5.7 percent year-over-year drop in the median sales price to $396,000.

  • The median condo price in Greater Boston fell 4.4 percent year over year in June to $592,500.

One thing's for sure. The declines are not due to a lack of inventory which has been falling for some time. Tim Warren, CEO of The Warren Group had this to say about that:

“Even though single-family home sales saw a significant decline in June, it’s not due to a lack of demand. The statewide inventory has steadily declined for years on end, and COVID-19 has given homeowners new reasons to stay put for now. There seem to be plenty of buyers looking for homes, and the median price has climbed every month for 51 straight months.

“The median condo price took its first year-over-year dip in 14 months. Prior to this development, the median sale price exceeded $400,000 for four consecutive months and was actually on track to outpace the median single-family home price during the course of 2020. It seems like potential condo buyers are waiting to see how the pandemic progresses before they commit to urban living and elevator rides.”

And Jason Gell, association president and an agent with RE/Max Unlimited in Brookline believes the slowdown can be pinned on increased red tape and should ease up soon. He states:

“Our challenge these past few months has not been a lack of buyers; it’s the fact that the process of showing property and obtaining the necessary inspections and documentation requires more time and effort to perform the work and ensure the proper safety protocols are met. Although we lost much of the spring market, we think the summer months will be much busier than normal due to pent-up demand and a steady influx of new listings since May, especially in the condo market.” 

Another factor that is expected to help the market recover is the current low mortgage rates.

The Greater Boston Association of Realtors’ breakdown for 64 communities can be found here.

Could a Luxury Real Estate Tax Fund Affordable Housing?

By adding a surcharge for the sales of luxury properties, the city of Boston could generate millions of dollars that could be used to boost affordable housing projects. Nearly 40  U.S. states have such a surcharge. That is according to the Institute for Policy Studies (IPS). 

A petition drafted by City Councilor Lydia Edwards and Council President Kim Janey would give Boston the authority to collect a 2 percent surcharge on real estate sales of $2 million or greater. However, the proposal has sat in the Massachusetts House Committee on Ways and Means since December 2019.

Under the proposed plan, revenue from the surcharge would go into the Neighborhood Housing Trust fund for low-income housing projects.

Last year the group loaned out $16 million. That amount could have been generated by surcharges on the sale of just two buildings, according to IPS.

A study co-authored by Chuck Collins and Omar Ocampo states:

“As of July 14, 2020, 100 out of the 171 units at One Dalton Place — located in Boston’s Back Bay neighborhood — have been sold, ranging in sale price from studio units under $1 million (thus exempt from the transfer fee) to a penthouse unit that sold for $34 million.”

Several other cities in Massachusetts are considering similar measures.

Read all about it at the Bay State Banner. 

Mass. Senate Approves Transportation Bond Bill

Massachusetts senators have passed a $17 billion bond bill aimed at funding major transportation projects throughout the state. 

Among the allotments designated in the Senate bond bill are:

  • $5.6 billion for federally aided highways

  • $2 billion for highways with no federal aid

  • $574 million for local and regional transportation projects.

The bill would also establish a special commission to investigate roadway congestion and recommend options for equitable roadway pricing mechanisms.

The bond bill now heads to a committee that includes lawmakers from both chambers of the state legislature in order to reconcile differences between the House and Senate versions of the bill.

Read all about it at LandLine.

Is Massachusetts Planning To Phase Out Natural Gas?

Massachusetts officials have begun considering a managed decline of the state’s natural gas industry. The move would be part of a larger effort to meet the state’s clean energy goals.

Gas-fired appliances account for two-thirds of the space and water heating energy which is the second-largest category of greenhouse gas emissions in the sate. 

The plan currently calls for a two-phase investigation. 

  • Phase One - Gas companies would be required to prepare “detailed economic analyses and business plans depicting future gas demand in a carbon-constrained economy.”

  • Phase Two - Focuses on the development and implementation of policies aligned with the 2050 net-zero target.

A comprehensive report by Green Tech Media covers this topic in detail.

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