Massachusetts’ Healey-Driscoll Administration has recently announced an ambitious $4 billion strategy, titled the Affordable Homes Act, aiming to accelerate the production of homes across the state. Accordingly, this initiative is set to be the most significant investment in housing in the history of Massachusetts. Today, Governor Maura Healey is scheduled to discuss this package’s details in Chelsea, Springfield, and Pittsfield.
“The cost of housing is the biggest challenge facing the people of Massachusetts. We said from day one of our administration that we were going to prioritize building more housing to make it more affordable across the state. The Affordable Homes Act delivers on this promise by unlocking $4 billion to support the production, preservation and rehabilitation of more than 65,000 homes statewide. It’s the largest housing investment in Massachusetts history. Together, we’re going to make our state a place where people can afford to move to and stay to build their future.”
Governor Maura Healey
The Affordable Homes Act is a multi-faceted approach, comprising $4 billion in capital expenditure permissions, 28 detailed policy alterations, three executive commands, and two specific tax incentives. All of these measures aim to lessen the challenges related to housing production and preservation, and to empower communities to develop more housing based on their specific needs. The primary beneficiaries of this financial injection will be moderate and low-income households.
Addressing the Pressing Need for More Homes
The need for additional housing in Massachusetts has become paramount to decrease costs, accommodate the growing population, and maintain a balanced vacancy rate. In addition to tax relief for housing development signed into law earlier this month, the measures in this new plan are expected to sponsor the construction of over 40,000 homes. These include 22,000 new homes for low-income households and 12,000 for those in the middle-income bracket. Moreover, the Act will contribute to the preservation and improvement of 12,000 homes for lower-income households. Additionally, it will support 11,000 moderate-income homes, and fund accessibility enhancements for 4,500 homes.
“As a former local official, I’ve seen firsthand how new housing can transform communities and help them flourish. But we only get those benefits when people can actually afford to live in these homes. The Affordable Homes Act is full of new tools for municipalities to help them implement the solutions that work best for the unique needs of their communities so that they can build consensus and build new homes.”
Lieutenant Governor Driscoll
The Significance of Public Housing
Recognizing the pivotal role of public housing in making homes affordable, the Affordable Homes Act is allocating a substantial $1.6 billion for the modernization of over 43,000 public housing units in the state. Additionally, $150 million is earmarked for the transition to green energy in public housing. Allowing the installation of heat pumps and electric appliances in 3,000 units. Another $15 million is set aside for improvements in accessibility.
“Our public housing stock in the Commonwealth has lacked capital investments for decades,” said Executive Office of Housing and Livable Communities Secretary Ed Augustus. “The proposed investment by this administration meets the moment. It will create powerful ripples for decades to come to ensure that families and individuals live in communities they can take pride in. The push to spur housing production will also directly help many others across a wide range of incomes who feel they’ve been priced out here in Massachusetts.”
Meanwhile, an additional $200 million has been authorized for the Housing Innovations Fund. This fund will focus on diverse rental housing needs, catering to the homeless, seniors, veterans, and individuals recovering from substance abuse.
Green Initiatives and Policy Changes
The Affordable Homes Act is keen on aligning with the administration’s environmental and housing objectives. An impressive $115 million is allocated to ensure that new affordable housing projects comply with elevated standards but remain economically feasible. Every housing investment under this Act is directed to reflect and uphold the state’s goals regarding climate change and decarbonization.
Furthermore, new policy initiatives offer communities the option to impose a real estate transaction fee ranging from 0.5% to 2% for property sales over $1 million. This fee, affecting an estimated 14% of total residential sales, will be used to fund local affordable housing projects. Additionally, communities are empowered to approve accessory dwelling units up to 900 square feet. This is a move that might result in the creation of 8,000 such units over the next five years.
Investment Breakdown and Future Affordable Housing Endeavors
$1.83 billion in funding, directed towards housing production and preservation in Massachusetts, is a turning point for affordable housing in Massachusetts.
$800 million for the Affordable Housing Trust Fund
- $425 million for Housing Stabilization and Investment Fund
- $175 million for HousingWorks Infrastructure Program
- $100 million each for CommonWealth Builder and Mixed-Income Housing
- $100 million for Mixed-Income Housing
- $50 million for the Momentum Fund
The Act also seeks to make the Community Investment Tax Credit Program permanent. It also seeks to enhance its annual allowance from $12 million to $15 million per year. Additionally, a new Homeownership Tax Credit is on the horizon.
Governor Healey signed three executive orders, laying the groundwork for future housing endeavors in the state.
“The housing needs are astronomical. Massachusetts is in a state of emergency, and it will take bold moves to stabilize this affordable housing crisis for all. The Massachusetts Affordable Housing Alliance (MAHA) supports this Bond bill and anxiously awaits the positive impacts.”
Symone Crawford, Executive Director, Massachusetts Affordable Housing Alliance
Executive Orders Maura Healey Signed to Support Affordable Housing
Executive Order Number 621: Establishing the Housing Advisory Council to address housing affordability in Massachusetts.
Governor Maura Healey introduced Executive Order No. 622, creating the Commission on Unlocking Housing Production to analyze and recommend changes to state and local laws and regulations that impact housing supply and affordability in Massachusetts.
Governor Maura Healey also announced Executive Order No. 623, directing the Executive Office of Housing and Livable Communities along with the Division of Capital Asset Management and Maintenance to identify and inventory government-controlled properties that might be suitable for housing development. This effort aims to repurpose underutilized or vacant properties. Additionally, this order expands housing supply in Massachusetts after an initial inventory was completed. The order also establishes guidelines, coordination efforts, and tools to facilitate property conversion into housing. The order urges all governmental and quasi-governmental entities to assist in this endeavor.
Governor Maura Healey continues to demonstrate unparalleled leadership for Massachusetts. Recently, she made a notable investment of $4.1M to bolster mental health support, emphasizing the well-being of her constituents. Not stopping there, Healey championed the environment by launching the Clean Energy Infrastructure Commission. And in a groundbreaking move, Massachusetts now proudly offers free community college under her guidance. Clearly, Healey’s vision is a brighter, healthier future for all residents.
Xylo News 