McGonagle gets $1M for Everett as House passes Housing Bond Bill

$6.5B bond bill is largest housing investment in Commonwealth’s history

BOSTON/EVERETT – On June 5, 2024, Representative Joe McGonagle, along with his colleagues in the Massachusetts House of Representatives, passed (145-13) 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. This bill included a $1 million amendment from Rep. McGonagle for low-income housing units in Everett.

“Everett is a growing city that cannot keep up with its’ housing needs,” said McGonagle. “Much like the rest of the Commonwealth, our community needs more housing that is deeply affordable to all. We want to keep people in Everett who want to stay in Everett. I’m grateful to my colleagues in the City for their collaboration on this issue. I’m also grateful to Speaker Mariano and Chair Michlewitz for their leadership on this legislation and recognizing the serious need in Massachusetts for low-income housing. In the middle of this housing crisis, I am grateful that I can fight and deliver for Everett, something I am excited to continue doing.”

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 to the Ipswich River Basin and to the South Shore area. The bill also 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) while expanding the statewide cap on donations from $12 million to $15 million, and the bill 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 that 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.

The bill also establishes a local option to require property owners to notify the municipality and tenants of its intention to sell a property and to allow a tenant association with the required minimum tenant participation to select a successor entity to act on its behalf to purchase the property. The bill also allows a municipality that has adopted inclusionary zoning, incentive zoning or a density bonus ordinance or bylaw to enter into an agreement with a housing developer to provide a preference for affordable housing to low- or moderate-income veterans for up to 10 percent of the affordable units in a development.

On June 10, the Senate referred the bill to its Committee on Ways and Means. More info about the bill is available at https://malegislature.gov/Bills/193/H4726