For years, the state's main policy to spur affordable housing has been viewed as a threat by many communities: Chapter 40B, as written in 1969, gives developers enormous latitude if a city or town fails to meet minimum levels of affordable housing. It has led to the creation of tens of thousands of units of housing. Yet the Massachusetts housing crisis continues to worsen. Therefore, it is time to offer cities and towns a carrot, in addition to the stick, to provide more housing.

Massachusetts has some of the highest housing costs in the nation, due in large part to the lack of new housing production. Over the past several years, home prices have skyrocketed. In fact, since 1997, the median price of a typical single-family home doubled in the Greater Boston area. Escalating housing costs threaten the momentum of our economic recovery and the fabric of our civic life - many teachers, nurses, lab technicians, even doctors and high-tech employees simply cannot afford to live here.

Unfortunately, the news is not much better for renters. While the rental market has temporarily softened due to the economic downturn, the median rent for a two-bedroom apartment continues to be much higher here than in other areas of the country. And, as our economy continues to recover, we will likely see rents begin to increase once again.

Since 2001, a broad and impressive coalition of business leaders, academics, developers, housing and environmental advocates, organized labor, and elected officials have come together in search of an answer. Last year this group, known as the Commonwealth Housing Task Force, released a blueprint. This week, the Senate will take the first steps to making this plan a reality.

The Senate's new housing production program takes a bold new approach in addressing the housing crisis and its dire consequences in restoring our economy. It will help create more than 30,000 new units of housing over the next ten years, and dramatically alter future development patterns in the Commonwealth.

The proposal allows communities to adopt "smart growth zoning" districts around public transit stops, town centers, commercial districts, and underutilized industrial properties, and offers financial incentives to communities that permit development of residential housing units in these zones at higher densities than otherwise allowed. The state will pay "density bonuses" of up to $4,000 for each new unit of housing that is created in these districts, and gives smart growth communities a priority when applying for discretionary state grants and other capital funds.

In addition, the plan establishes a foundation for the state to absorb payment of additional school costs that communities may incur as a result of increasing student enrollment from these districts. Together, these payments remove one of the main excuses beyond the NIMBY (not in my backyard) mindset by ensuring that new development will not financially hamstring cities and towns.

The housing shortage not only raises serious quality of life issues for our citizens, but it also poses significant problems to the long-term viability and success of our economy. Employers are finding it difficult to recruit employees from outside of Massachusetts, and many former residents have been forced to give up jobs and move to states where housing is cheaper. Though we have some of the finest colleges and universities in the world, it has been increasingly challenging to retain the highly educated young people who graduate here but opt to live elsewhere.

In order to maintain our competitive advantages in the fields of healthcare, biotechnology, and manufacturing, attract new businesses, and grow, it is necessary to ensure that workers have safe, decent, and affordable housing in which to live.

Unfortunately, there is no simple solution to the problem that we are facing. However, we are confident that ours is a fiscally responsible approach that will help to alleviate the housing crisis and make Massachusetts a more attractive place to live, work, and do business in the future.

Smart growth zoning will foster distinctive and attractive communities, preserve open space and critical environmental areas, reduce urban sprawl, provide residents with a variety of transportation choices, spur economic development, and create a range of new housing options. It is a win for the Commonwealth, a win for our cities and towns and a win for our citizens.

Robert E. Travaglini is president of the Massachusetts Senate.

Senator Harriette Chandler represents the First Worcester district.