DiDomenico announces passage of largest housing investment in Commonwealth’s history

$5.16B housing bond bill adds resources for new units; makes sweeping policy changes to simplify and incentivize development

The Massachusetts Legislature passed the Affordable Homes Act, the largest housing investment in Massachusetts history and a powerful first step in tackling the state’s housing affordability crisis. On August 6, Governor Maura Healey signed this historic bill into law. The legislation authorizes $5.16 billion in bond authorizations and tax credits to spur housing production in Massachusetts while implementing sweeping policy initiatives to facilitate the development of affordable housing and preserve public housing in Massachusetts.

“I am excited to see this transformative investment addressing the housing crisis pass through the legislature and signed into law,” said Senator Sal DiDomenico, who is Assistant Majority Leader of the Massachusetts Senate. “This bill will repair and create housing, help countless individuals find the home they need, and ensure people can continue to live in the community they have lived in their entire lives. I want to thank Governor Healey, Senate President Spilka, Senator Rodrigues, and Senator Edwards for bringing this ambitious plan to life and shepherding it through the legislative process.”

To help municipalities convert commercial properties into multi-unit residential or mixed-use properties, the bill makes project sponsors eligible for a tax credit of up to 10 percent of the development costs upon completion of a project. The bill includes a new tax credit to incentivize production of homeownership units targeting households with incomes of up to 120 per cent of the area median income (AMI). It also makes permanent the Community Investment Tax Credit (CITC) while expanding the statewide cap on donations from $12 million to $15 million. Further, it 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 is a provision to permit one accessory dwelling unit (ADU) 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 further provides consumer protections to help prevent homeowners from being pressured into waiving a home inspection, protects tenants who have a years-old eviction record from having that record held against them when securing new housing, gives seasonal communities new tools to tackle their unique housing challenges and protects renters from having their unit redeveloped into a condominium.

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 per cent of the funds dedicated to preserve housing for those with incomes below 30 percent AMI
• $150 million (M) to decarbonize the public housing stock and $15M for accessibility upgrades
• $200M to support Local Housing Authorities (LHAs) that 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

• $200M 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 per cent of funds must be used to fund projects that preserve housing for those with incomes below 30 per cent AMI.
• $70M to support the development of appropriate community-based housing for Department of Mental Health (DMH) and Department of Developmental Services (DDS) clients
• $60M to modify homes of individuals or families with disabilities or seniors so that they may maintain residency or return home from institutional settings.
• $55M to support appropriate housing for people with disabilities who are not DMH or DDS clients.

Housing development

• $800M for the Affordable Housing Trust Fund, which provides resources to create or preserve affordable housing for households earning less than 100 per cent of AMI
• $200M to accelerate the development of mixed-income multifamily housing
• $100M for the Middle-Income Housing Fund, which funds housing development for households earning less than 120 per cent of AMI
• $100M for the Commonwealth Builder program for the construction of affordable single-family homes for households earning between 70 and 120 per cent of AMI, primarily in Gateway Cities

HousingWorks

• $425M to support preservation, new construction and rehabilitation projects through the Housing Stabilization Fund and the Community Investment and Preservation Fund
• $275M 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 per cent of the funds must be used to fund projects which preserve housing for those with incomes below 60 per cent of AMI.
• $175M for municipal infrastructure projects to encourage denser housing development.
• $50M to provide payments to municipalities that receive a Housing Choice designation through high housing production and/or demonstration of best practices, including a grant program to assist MBTA Communities in complying with the multi-family zoning requirement in the MBTA Communities Law
• $50M for grants to municipalities for planning and zoning initiatives that support housing production, workforce training and economic opportunities, childcare and early education initiatives and climate resiliency initiatives
• $20M to provide incentive payments to municipalities that adopt smart growth housing districts