Canton, Massachusetts · Saved source text
Article 33 Questions and answers to Finance Committee.pdf pdf file
Saved text from 3 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.
Source page 1
Finance Committee Questions generated at Mon. March 16th Info Session
1. What is the expected impact on revenue? As a member of the revenue forecast
committee, I personally don’t have concerns. However, development is a little slow right
now and I want to know how this will affect the next few years.
There is no documented evidence that the Specialized Code slows development. In fact,
there is evidence that residential development has increased in communities that have
adopted the Specialized Code. Most builders today are building all-electric buildings, to
minimize costs associated with building and connecting both electric and gas
infrastructure. Electric residential and commercial buildings have no new requirements
under this Specialized Code. Multifamily buildings also need to be built to Passive House
standards, but this is already being done for a majority of new multifamily buildings that
have to apply for MEPA permits. Additional costs for mixed fuel buildings are minimal,
and involve the installation of solar, which lowers the operating costs of the building for
decades to come, increasing the building’s value, and thus potential revenue.
2. What are the construction rebates for commercial development that builds to Specialized
Code and Passive House standards?
All buildings built to specialized code and passive house standards are able to fully
benefit from Mass Save incentives for new construction, including incentives for air
source, ground source, and variable refrigerant flow heat pumps (based upon unit size),
along with robust technical assistance to help builders achieve the relevant standards.
More information is available here: Mass Save | New Construction & Major Renovations
3. How can this impact our tax base? Currently, ⅓ or 35% of Canton’s real estate tax
revenue is generated through commercial development (25% of the value through
Canton’s split tax rate). “We need to know the impact on commercial development
before we go mandating.”
The Specialized Code will have zero impact on any existing buildings, residential or
commercial, in Canton’s tax base. The Specialized Code only applies to new
construction. For commercial buildings that are built all electric, there are no new
requirements and $0 in additional costs above the current Stretch Code. For commercial
buildings choosing to continue building with fossil fuels (mixed fuels), the additional costs
are very small compared to the cost of new construction - it requires 1) running some
additional wires in the building to allow for future electrification conversions (which will be
much more expensive to do after the fact) and 2) installing solar, which will more than
pay itself back as it lowers the operating costs of the building for decades to come while
also lowering the cost of electricity for the rest of Canton by lowering demand. LowerSource page 2
utility costs for buildings could increase the value of the building, thereby potentially
increasing revenue.
4. How do you understand the Specialized Code in context with other communities? For
example, is Canton doing any studies to show the impact on real estate and commercial
development in comparable towns that have already adopted the Specialized Code
(e.g., Lexington and Norwood)?
Studies have shown that more housing units have been both constructed and permitted
in the year following implementation of the Specialized Code than in the year preceding
it.1 The studies have focused on multifamily buildings, as the requirement to build them
to Passive House standards is the only substantive cost added to any building type, and
it has not slowed down permitting or construction of these units (and indeed further
lowers the costs of operating them, making them more affordable to reside in). There
have not been any studies showing the impact on commercial development, in large part
because there are no added requirements or costs to all-electric commercial buildings,
which account for the vast majority of new commercial buildings.
5. How much development has been done as an average over the last 10 years. When do
the benefits accrue?
(a) Pay back on homes is 12-13 years. However, a typical homeowner resides in their
home for 7 years.
(b) Is there a comparable statistic for commercial buildings?
DOER analysis assumes that any additional costs for new mixed-fuel residential
construction will be rolled into the sale price of a new home by the builder. However, the
1-2% increased cost to buy the house makes the house more than worth it because the
new owner will have free electricity from day one. Even if the owners only stay in the
house for 7 years, their house is still worth more and will have a higher sale value,
because the next owner gets free electricity on day one as well.
DOER has not provided comparable analysis for new commercial construction.
However, the same concept of increased building value and long-term annual utility
benefits also applies to commercial buildings. The low costs of pre-wiring and minimal
solar installation at time of construction (i.e., estimated incremental costs also in the
1-2% range) applies to commercial construction as well. Again, the value of the building
is increased due to its free electricity, which will stay with the building whether it’s sold in
2 years or 10 years.
6. Why are we mandating adoption of the Specialized Code when the new Galvin Middle
School is already being voluntarily built to these standards?
1
See Massachusetts Energy Codes are Compatible with Increasing Housing Supply.Source page 3
Canton’s adoption of the Specialized Code provides the following broad, long-term benefits:
1) Provides access to > $1 million in grants that Canton will otherwise be ineligible to receive;
2) Prevents future Canton home and building owners from being saddled with disruptive and
unnecessarily high electrification upgrade costs;
3) Lowers electricity costs for current Canton multi-family residents by reducing demand through
more efficient new buildings and increasing supply through required solar on new mixed-fuel
buildings; and
4) Helps continue Canton’s leadership in tackling the climate crisis.
7. How has the Specialized Code impacted the stock of starter homes?
MA state policy now treats all-electric construction as a standard pathway for new homes, and
the MA DOER notes that the majority of new multifamily buildings permitted by 2025 are being
built to high-performance standards like Passive House.2 There are no additional requirements
or costs for all-electric homes. While the Sustainability and Climate Action Plan Committee is
not aware of any specific local studies, data from MAPC shows that most communities where
the Specialized Code went into effect in 2024, saw an increase in new residential building
permits from 2023 to 2024 (2025 data is not yet available).
8. What is the urgency for pushing the Specialized Code - it seems like this is moving too
quickly?
The Specialized Code requires Annual Town Meeting approval, which generally only happens
once a year. The consequences of waiting an additional year include the risk of: 1) losing
access to over $1 million in potential grant funding for Canton; 2) continuing to allow buildings to
be built with wiring configurations that are very expensive to retrofit, and 3) allowing new
buildings to consume more energy and produce less electricity, resulting in higher electrical
demand on the grid and higher costs for existing Canton residents and businesses.
In addition, the Select Board approved funding in 2026 to hire an energy consultant to, among
other things, implement the Specialized Code’s public information campaign. Delaying a vote to
the 2027 ATM disconnects this vote from the comprehensive 2026 informational campaign,
which to date includes the following: seven (7) Specialized Code informational sessions with key
boards and committees, including the Economic Development Committee, Zoning Board of
Appeals, Planning Board, Finance Committee, Affordable Housing Trust, Master Plan
Implementation Committee, and Sustainability and Climate Action Plan Committee along with
several meetings with key Canton departmental leads. In addition, the following three (3)
scheduled public information sessions would need to be repeated: (1) March 24, 2026, at 6:30
pm at the Canton Public Library, (2) April 30, 2026, at 1:00 pm at the Canton Senior Center, and
(3) May 3, 2026, at 1:00 pm at Canton’s Earth Day event at the Canton High School.
2
See September 17, 2025, DOER presentation “MA Energy Code: Overview for EEAC.”