$6.5 billion bond bill is the largest housing investment in state history
FOR IMMEDIATE RELEASE Media Contact: Sasha Severino 978-228-1233 | sasha.severino@mahouse.gov
BOSTON – Wednesday, June 5, 2024 – The Massachusetts House of Representatives passed “An Act relative to the Affordable Homes Act,” which includes $6.5 billion in bond authorizations, tax credits, and over 20 policy initiatives that promote housing production, facilitate the development of affordable housing, and preserve public housing in Massachusetts.
In order to facilitate an increase in housing development outside the Greater Boston area, the bill includes $1 billion to allow for the potential to expand the Massachusetts Water Resources Authority’s water system. And includes a new $150 million program to help municipalities convert commercial properties into multi-unit residential or mixed-use properties. After project completion, project sponsors would be eligible for a tax credit of up to 10 percent of the development costs.
The bill also includes a new tax credit to incentivize production of homeownership units targeting households with incomes of up to 120 percent of the area median income (AMI). Additionally, the bill makes permanent the Community Investment Tax Credit (CITC) and extends the sunset of the Historic Rehabilitation Tax Credit through December 31, 2030, while increasing the total available amount from $55 million to $110 million.
Among the many policy initiatives included in the bill to create more housing, the bill permits one accessory dwelling unit (ADUs) equal to or less than 900 square feet to be built by-right on a property in single-family zoning districts in all Massachusetts communities. The bill also authorizes a court appointed receiver of a vacant residential property, in actions to enforce the sanitary code, to sell the property at fair market value to a nonprofit which will rehabilitate the property, correct sanitary code violations, and sell the property to a first-time homebuyer with an income not more than 120 percent of AMI.
“This housing legislation is truly landmark in investment and in policy. I’m thrilled that key legislation I filed and prioritized around ADUs and homeownership were included,” said Representative Andy Vargas (D-Haverhill). “The Affordable Homes Act dismantles barriers to affordability and housing production. Within the $6.2 billion there are investments in successful programs like MassDreams and Commonwealth Builder. The bill includes language legalizing Accessory Dwelling Units statewide, a proven tool for increasing affordable housing. We are thrilled that residents statewide have the ability to build a small unit on their lots for their loved ones or simply to generate income to help make ends meet. The data on ADUs across the country is clear — they only help add supply, balance demand, and slow rent increases. This legislation will give our communities the tools to address our housing needs and provide opportunities for our residents to live and thrive in the Commonwealth.”
“Abundant Housing MA was proud to partner with Representative Vargas to advocate for passage of this meaningful statewide ADU legalization. If this language is ultimately passed by the Senate and signed by Governor Healey it will not only make Massachusetts the final New England state to adopt a statewide ADU law, but it will be the strongest and most effective set of minimum statewide standards for ADUs across the northeast United States,” said Jesse Kanson-Benanav, executive director of Abundant Housing Massachusetts. “Residents of the 3rd Essex District and across the Commonwealth are fortunate to have such a strong pro-housing leader in Rep. Vargas. We are additionally grateful to the leadership of Speaker Mariano, Chairman Michlewitz, and Chairman Arciero for their work to ensure this language was adopted without poison pill amendments that would hinder the ability of homeowners across the Commonwealth to create ADUs and to help ensure that they are an effective tool in the Massachusetts toolbox to address our severe housing shortage.”
“I’m incredibly proud of the investments included in this bill, which together make the largest investment in affordable and middle-income housing, as well as critical infrastructure related to housing production, in the history of the Commonwealth. Given that Massachusetts is one of the most expensive states in the entire country to buy a home or rent an apartment, the funding and tax credits provided by this bill will be crucial as we work to ensure that every Massachusetts resident can afford to live here, work here, and raise a family here,” said House Speaker Ronald J. Mariano (D-Quincy). “I want to thank Governor Healey for filing the Affordable Homes Act, as well as Chairman Michlewitz and Chairman Arciero for guiding this bill through the legislative process. I am grateful to all my colleagues in the House for carefully considering every aspect of this legislation, and for recognizing the need for significant action on housing.”
"The Affordable Homes Act is the largest housing investment in state history and meets the moment for our state's housing landscape and people struggling with housing availability," said Representative James Arciero (D- Westford), House Chair of the Joint Committee on Housing. "Massachusetts is amidst a housing crisis that has affected every corner of our state, from renters to homeowners to first-time homebuyers purchasing their first home looking to set down roots for their family. This comprehensive bill provides tools in the toolbox for our communities including investments in state infrastructure to accommodate the need to replenish our housing stock and build deeply affordable to market rate housing. I'm incredibly proud of this encompassing bill, as I would like to thank House Speaker Ronald Mariano and House Ways and Means Chair Aaron Michlewitz for their leadership and diligence on this important legislation that will positively impact Massachusetts's housing landscape for years to come."
Bond authorizations include:
Public housing
$2 billion to support the repair, rehabilitation, and modernization of over 43,000 public housing units across Massachusetts, with 25 percent of the funds dedicated to preserve housing for those with incomes below 30 percent AMI. $150 million to decarbonize the public housing stock and $15 million for accessibility upgrades
$200 million to support Local Housing Authorities (LHAs) who partner with developers to add mixed-income developments on LHA land, leveraging funds to maintain and preserve public housing while increasing the overall housing supply
Housing vulnerable populations
$200 million to support innovative and alternative forms of rental housing including single person occupancy (SPO) units, transitional and permanent housing for people experiencing homelessness, housing for seniors and veterans, and transitional units for persons recovering from substance use disorder. 25 percent of funds must be used to fund projects which preserve housing for those with incomes below 30 percent AMI
$70 million to support the development of appropriate community-based housing for Department of Mental Health (DMH) and Department of Developmental Services (DDS) clients
$60 million to modify homes of individuals or families with disabilities or seniors so that they may maintain residency or return home from institutional settings
$20 million to establish a veterans supportive housing program to develop and preserve supportive housing for veterans and their families experiencing homelessness, including wraparound services
Housing development
$800 million for the Affordable Housing Trust Fund which provides resources to create or preserve affordable housing for households earning less than 100 percent of AMI
$250 million to accelerate the development of mixed-income multifamily housing
$200 million for the Workforce Housing Fund which funds housing development for households earning less than 120 percent of AMI
$100 million for the Commonwealth Builder program for the construction of affordable single-family homes for households earning between 70 and 120 percent of AMI, primarily in Gateway Cities
$50 million for the acquisition, rehabilitation, and sale of distressed properties
$50 million to create a new Healthy Home program to provide grants and loans for programs to make homes habitable. Half of all funds to be administered to owners of buildings in Gateway municipalities
$10 million to facilitate affordable housing production in Gateway municipalities
HousingWorks
$425 million to support preservation, new construction and rehabilitation projects through the Housing Stabilization Fund and the Community Investment and Preservation Fund
$275 million to consolidate the existing Transit Oriented Housing Program and the Climate Resilient Housing Program and create a new, innovative program to accelerate and unlock new housing. 25 percent of the funds must be used to fund projects which preserve housing for those with incomes below 60 percent of AMI
$25 million for grants to municipalities for planning and zoning initiatives that support housing production, workforce training and economic opportunities, child care and early education initiatives and climate resiliency initiatives
Having passed the House of Representatives 145-13, the bill now goes to the Senate for its consideration.
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