Over objections from Sen. Robert L. Hedlund and others, the Senate has tucked into an economic reorganization bill language that helps 40B developers struggling to find financing for their floundering projects, while also potentially setting the stage for an end-run around a possible November vote to repeal the broken law.

The bill is currently awaiting action in the House of Representatives. Sen. Hedlund has already sent a letter to a number of House members asking them to strike this language from the bill during debate.

The Senate bill attempts to streamline the state’s myriad business and economic development agencies. One of the measures included in this legislation is Section 122, which states that certain state and local permits, waivers and other approvals granted between Jan. 1, 2008 and Jan. 1, 2011 will remain valid for an additional three years. The section is needed because of the large number of development projects that have stalled due to tight credit markets, and now face loss of their permits. However, among the types of approvals covered by this section are those granted under Chapter 40B, the state’s comprehensive permit law.

“While I do not think it is unreasonable to extend permits for projects that will bring long-term economic growth to our communities, I do not feel this extension should include 40B projects,” Sen. Hedlund said. “Unlike commercial development undertakings, 40B projects do not add permanent jobs and take away money from local budgets. Considering 40B developers already have three years to put the first shovel in the ground, they don’t need six years.

 â€œAlso, our housing market remains glutted with vacant homes, partly thanks to the unsustainable pace of housing construction over the past decade. Rather than rewarding developers by making it easier for them to build even more housing units, we should focus on utilizing the available housing stock we have.”

It also is not clear whether this language would encourage developers to file a number of 40B projects in the coming months, hoping they would be grandfathered in should the ballot question repealing 40B is adopted by voters in November.

The clause was discovered after it was too late to amend the bill. Following the session, Sen. Hedlund quickly authored a letter that was sent out to 40B-reform allies in the House of Representatives, alerting them of the clause, and asking them to file an amendment carving out comprehensive permits from the permit extensions. The letter was co-signed by Sens. Kenneth Donnelly, of Arlington, Bruce Tarr, of Gloucester, and James Timilty, of Walpole.

“It is my hope that my colleagues in the House will be able to remove this language so we have a bill that focuses on making it easier for the economy to grow without rewarding greedy housing speculators,” Sen. Hedlund said.