Affordable Homes Act passed

(BOSTON—8/5/2024) The Massachusetts Legislature has 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.

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’m incredibly proud of the investments included in this bill, which together make the largest investment in affordable and middle-income housing 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, and to our partners in the Senate, for carefully considering every aspect of this legislation, and for recognizing the need for significant action on housing.”

“An affordable, equitable, and competitive Commonwealth is one in which a renter can find an apartment within their budget, a family can afford a down payment on their first home, and residents aren’t priced out of communities where they want to live,” said Senate President Karen E. Spilka (D-Ashland). “Today the Legislature took concrete action to make that vision a reality, a first step in rectifying decades of underinvestment that has led to our housing crisis. I am profoundly grateful for Senator Brownsberger’s leadership of the conference committee and Senator Edwards’ leadership on the Senate bill and the compromise legislation, as well as to each member of the Senate, and our partners in the House for recognizing the urgency of this issue and taking meaningful action.”

“The Affordable Homes Act is the largest investment in housing in the history of the Commonwealth. The investments we passed in this legislation reduce barriers for individuals seeking affordable home options; increase housing production and inventory; and create more tools in the toolbox to help cities and towns offer more affordable housing options,” said Representative James Arciero (D-Westford), House Chair of the Joint Committee on Housing and House Chair of the conference committee. “I’m incredibly proud of this encompassing bill, as I would like to thank House Speaker Ronald Mariano and House Ways and Means Chairman Aaron Michlewitz for their leadership on this important legislation that will positively impact Massachusetts’s housing landscape for years to come. I would also like to thank Joint Committee Co-Chair, Senator Lydia Edwards and my Senate conferee, Senate President Pro Tempore, Will Brownsberger, for their leadership and diligence throughout the process.”

“The high cost of housing makes it hard for people to stay in Massachusetts,” said Senate President Pro Tempore William N. Brownsberger, Senate Chair of the conference committee. “This bill is a big step forward and will help control housing costs over the short and long run. Many, many people contributed to this bill and I’m glad that it came together in time to cross the finish line.”

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.

“This comprehensive bond bill will help address the Commonwealth’s undeniable housing crisis. By putting billions of capital resources towards constructing new homes and towards rehabilitating our aging public housing infrastructure, we will be making a difference to the thousands of residents who live in these facilities,” said Representative Aaron Michlewitz (D-Boston), Chair of the House Committee on Ways & Means and a member of the conference committee. “The policies also contained in this legislation will help incentivize housing production, increase affordability options for residents, and help alleviate the pressure on the housing inventory as a whole.”

“This bill is the necessary course correction our housing system needed,” said Senator Lydia Edwards (D-East Boston), Senate Chair of the Joint Committee on Housing and a member of the conference committee. “From zoning reform to capital investments to protecting tenants, we did it all. We laid a great foundation, and I am grateful to my co-conferees, Senate President Spilka, and Governor Healey for their leadership.”

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 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 per cent of funds must be used to fund projects which preserve housing for those with incomes below 30 per cent 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.
  • $55 million to support appropriate housing for people with disabilities who are not DMH or DDS clients.

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 per cent of AMI.
  • $200 million to accelerate the development of mixed-income multifamily housing.
  • $100 million for the Middle Income Housing Fund which funds housing development for households earning less than 120 per cent of AMI.
  • $100 million 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

  • $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 per cent of the funds must be used to fund projects which preserve housing for those with incomes below 60 per cent of AMI.
  • $175 million for municipal infrastructure projects to encourage denser housing development.
  • $50 million 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.
  • $50 million 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.
  • $20 million to provide incentive payments to municipalities who adopt smart growth housing districts.

Having passed both chambers, the bill now goes to the Governor for her consideration.

38 replies on “Affordable Homes Act passed”

  1. I’m frustrated by what I feel like was a missed opportunity to address the biggest blocker of the creation of more housing: zoning reform. It is frustrating that any lot in Boston metro is zoned for anything less than 3 units. It is a regulatory block on housing stock growth that would cost taxpayers nothing to address.

    1. I too support additional zoning reform.

      This bill did do three important things towards zoning reform:

      • Legalized accessory dwelling units by right
      • Made it harder to stop housing in the courts with dilatory appeals.
      • Changed rules that automatically combine adjacent lots under common ownership and so prevent the construction of small homes

      I will be writing more about these.

      We need to continue the push for additional zoning reform to make it easier to build housing over the years to come.

  2. I’m very interested in building an ADU on my property in Brighton. How long will it take for the regulations to be developed?

    1. The ADU provision goes into effect in 180 days — next February. It’s reasonable to hope that Housing and Livable Communities will have regulations ready in roughly that time frame. But it may take some additional time at the local level for policies to settle.

  3. I applaud the efforts of the Legislature to get this important bill done. However, you will never solve the housing crisis in Massachusetts until you solve the migrant crisis. As long as millions of illegal aliens keep streaming into our state, we will never be able to build enough housing for everyone, and to make it affordable.

    1. Hi Bob,
      You are correct, of course.
      Will and his party welcomed perhaps 10,00,000+ illegal immigrants into the US under Pres. Biden and VP Kamala “border czar” Harris.
      Millions more are on the way, and thousands stream in every day, along with fetanyl, ketamine, sex and child trafficking, criminals, murderers, rapists, and gangs. Wair until Kamala becomes president.
      The Dems and Will have no idea where to house illegal aliens on a permanent basis and don’t care.
      When they’re legalized, they’ll become Democrat voters. That’s all thar really matters to the Dems.
      They also don’t care one iota about the effects on health care, school budgets, food stamps, welfare, quality of life, and more.
      Notice that Will never addresses these issues.

      1. Glad that there is at least another voice of reason on here. Yes, I wish Will would address these issues. The migrant issue in Mass. is self-inflicted. The legislature could put a citizenship requirement in the “Right to Shelter” law which would basically stop illegals from thinking that Mass. will give them a free ride on everything. But they won’t. The voters will remember this in November.

        1. Bob, what you say is true.
          But it’s about more than Mass.
          The entire country is being flooded by illegals, whereas Trump pretty much had a handle on it.
          Two reasons for this:
          1) Globalists wish to destroy the basically European cultural and demographic makeup of America.
          2) Dems are bringing in untold millions of unvetted persons whom the Democrats will make citizens as soon as they control sufficient majorities in the Senate & House AND the White House.
          Those “minorities” will then vote Democrat & the GOP will lose, just as we see GOP states turning in Dem states.
          Has anyone noticed the products now locked up in CVS, Target & elsewhere that Will says nothing about? That’s the DEGRADATION of American society under mostly Democrat rule. Will is a Democrat.
          How about the stores closing in formerly nice places such as San Francisco? That’s deliberate Democrat policy. I guess it’s what people want, Bob.

            1. No.
              The legislation would have allowed 5000 illegals per DAY to come into the US.
              And the president could change it anytime he wanted, because that’s the existing law.
              And it’s not just Venezuela at all.
              It’s Mexico and over 100 countries – they are sending them/allowing them to go into the US.
              The Biden administration is violating many immigration rules.
              In the 2020 debates, Biden actually invited them all in and then he removed all of Trump’s executive orders that were working well.
              Jordan, here is Biden inviting illegals in in the 2020 debate:
              https://www.youtube.com/watch?v=rYwLYMPLYbo
              Does Will care?
              Jordan, do you know that in Will’s district at least one police chief does not in many cases send an arrestee to the courts because they will just release him. He said that publicly and I heard him. Crimes are much more frequent then is reported.

    2. Numbers matter. There are not “millions” streaming into our state. There are approximately 7,000 in the shelter system. We’d have a housing problem without them anyway.

      But I agree we face an important challenge. One of the goals of my series of posts over the next couple of months is to clarify how the measures we have taken compare to the real needs.

  4. I wonder how much of this will be a ‘devil is in the details’ issue. For instance, what is the effect of this legislation on related local rules that have mandates about the maximum proportion of a lot that is impermeable (which are typically intended to protect groundwater and reduce runoff/flooding), and requirements that structures cannot come within X feet of a property line? Are those kinds of local controls still allowed?

  5. For clarity, I’m thinking here about the ADU provision specifically, if that wasn’t obvious…

    1. You are right. The devil is in the details. The language states “No zoning ordinance or by-law shall prohibit, unreasonably restrict or require a special permit or other discretionary zoning approval for the use of land or structures for a single accessory dwelling unit, . . .” The words “Unreasonably restrict” need interpretation through regulation, which the law does contemplate.

    1. Illegal aliens need permanent housing, Anne, not just shelters.
      Any availability in your neighborhood?
      Where would you prefer they live?

  6. The bill completely blew past the property tax burden issue. This is one of the big issues in affordability when a person has to pay 25% of their income in property taxes. The legislature created a new burden called the MBTA communities act. This will burden the communities with more school children without ponying up to pay for it. The legislature needs to hunt down state mandates and fund them or repeal them.

      1. That is a core problem Public policy needs to be comprehensive and cover all possible scenarios to provide equity. I am not optimistic about the affordable homes act working as intended. The real estate industry is salivating over the opportunity of public money borrowed from the taxpayer at usury rates, used to build homes that they can buy at distressed prices from unqualified buyers, hoard them then flip them when interest rates drop, passing on the hidden costs to the taxpayer.

  7. Hi,
    I’m not sure this bill is all for immigrants., but I’d say that all the cheaper the imported labor is can be a boon to corporations that want to keep their costs down. Don’t blame them..follow the money.. There are more billionaires now than ever, how did they make their money ?..cheaper imported labor. Still please don’t ignore that, yeah, we ought address our residents at various incomes needing housing too. I noticed that in the bill is for 145 Ami..isn’t that 160,00 per year? Who can not afford housing at that rate of income? If I’m mistaken..ok…We ought to consider our low income, truly middle class, and the sad mess we made of exploiting immigrants.
    I’d add it is too easy to blame the class below you, than above..

    1. Hi Elaine,

      I can tell you that my husband and I, both teachers, have a combined income of around $150,000. This should, in theory, allow us to purchase a house, but we’ve been priced out. Even before interest rates made a mortgage cost-prohibitive, tear down houses were 500,00K and anything that was move-in ready had a list price of 800K or higher. Combine housing prices in a location convenient to where we both work (we would love to stay in Watertown) and the cost of daycare for our toddler and that money does not go that far. It’s beyond frustrating to have a good income, healthy savings, and still be stuck renting for the foreseeable future.

      1. Thanks Maya, I stand corrected on that. Seems like that makes for so many to be perpetual renters. Good for the realtors.

        I accept my income is lower than that, so I rent, but didn’t know it was that bad for potential homebuyers. Your comment is important!

      2. Thank you, Maya. You are raising the real problem that this bill is intended to speak to — housing affordability for Massachusetts residents. It’s our number one problem and this bill doesn’t “fix” it, but it makes a dent.

        1. Will, nice comment, but it seems you’re riding on both my and Maya’s comments. Thanks for the dent thingy. thought.

  8. Like the term, “Zionist,” “NIMBY” is not a slur, but a term of honor. All of Ma is diversifying and “local control” is not a dog whistle, or euphemism for racism, rather it protects the diversity of types and histories of neighborhoods. It’s no longer about complexion, the democratic principle of local control protects all individuals who constitute our steadily diversifying neighborhoods especially in the face of the command socialism of the MCA.

  9. I would prefer you vote no, but you’ll do as you please because you don’t truly care about your constituents. It doesn’t really matter at this point because I will be moving out of the state at the end of the year.

  10. What you have done is expand congestion. We are over populated as is. Our quality of life will further deteriorate.
    The Beacon Hill Crime family does not have the back bone to solve the congestion problem.
    Is our fascist state government now demanding home inspection so much for freedom of choice.

  11. Good comments.
    It’s dispiriting to live in Massachusetts where the legislators are guaranteed of continued jobs because the people think the solution is more government control.
    Will is a nice guy who doesn’t have a clue about small government.

  12. There is a lot to like in this bill.

    Don’t be fooled by the specious, permission-giving, fig leaf assertion that The MBTA Communities Act is a scheme in harmony with the principle of market forces. It is not. It is an expropriation and exploitation of local land and local virtues nominally for an emergent need. Market forces would distribute and dissuade people to stay near existing affordable housing, or move further from the city center. I have seen our overlords and they are developers.

    I don’t mean to look a gift horse in the mouth. There but for the galaxy’s grace go I, but let’s be clear where we’re going.

    And, these accessory dwellings. Are homeowners prohibited from using them for internet based home hotel companies like AirBNB? If not, then are we looking at the product of Air BNB lobbying dollars in this bill?

  13. Very much needed housing bond bill hopefully there’s no foreseeable issues that will gut these vital funding for these various policy

  14. Can we get some loosening of zoning laws?

    Thank you for writing up this summary; I look forward to reading about how these funds get used.

  15. Three questions having read parts of the funding ,none of which applies to me now:
    1. Mentions preventing eviction records of prospective tenants from being used against them. Uses words “years old.” Is there a defined number of years? Even when you apply for a MA driver’s license they ask if you’ve had a license suspension in the last X number of years. Maybe it was 10 years.
    2. Protects renters from condo development. WSJ reported in Miami developers systematically bought condo units in a building and ultimately forced out condo Owners who didn’t want to move shutting utilities off as well. They may have changed the bylaws to implement this. Maybe it’s not common here for condo units to be bought out but it is shocking to me even an Owner, or you would think so, could be booted out. Hope this isn’t allowable here.
    3. Under $60 million category, for seniors to maintain residency with accessibility improvements e.g. a ramp up outside steps, stair lift, bath modifications, etc. Is this means tested as written? Would the senior have to produce a tax return for example, meaning indicate income? Thank you.
    Again not that this applies now, but this typeface in the comments section is kind of small! Make sure the seniors can read this!!!

    1. Anne,
      Since you’re interested in CONDOS, you should know that many rent control laws put a condo (or 1/2/3/4 family house) under rent control IF the owner moves out (assuming the owner is even in there in the first place).
      Few condo owners, especially the liberal ones, know this.
      Boston, Cambridge, Brookline, Amherst, and Somerville used to have rent control.
      Boston Mayor Wu has a presented a rent control law to the Mass. legislature, but it has not yet voted on it.
      These are draconian laws which impede the upkeep of rental units and which discourage the building of new units (even if they exempt new buildings from rent control for 10 years).
      So now we know a bit more about how the government and many legislators are responsible for the lack of housing.
      To say nothing of the fact that I know of not even one Democrat Mass. legislator who has spoken out about what is, in effect, an open US southern border. More than 10 million future renters have come in under Biden.
      Has the US built housing for them?
      Do those of you who favor illegal immigration welcomed illegal aliens into your residence as Gov. Maura Healey has asked? I doubt it.
      Even SHE has not let them in her place.

      1. Thank you, Dee. When I first moved to Boston decades ago, I ran into a woman who rented out her condo while maybe travelling. She came back to Boston and couldn’t use her unit. Tenant refused to move. That scared me no end. I recall her saying she spoke to “Dapper” (Boston City Council that long ago) Don’t know how long nor how much it cost her to get her home back. Also, there is nothing cheap here in Boston except the local church food pantries. Plumbers, electricians, locksmiths charge a lot per hour or worse half hour so to have rent control is ridiculous, unless you’re handy I guess. There’s no price control for tradespeople. Then insurance has skyrocketed. I had a now deceased friend who was bitten by a lawyer when rent control was the law. He had two units and some lawyer preyed on him. I’m guessing it was six figures. He was able to essentially buy his rental property back. He never rented out again. I know someone else here who refused to rent out again because tenants did some damage. Meanwhile he/she thinks it’s terrific illegal are coming here. Note he/she still won’t rent out the rental unit. However, if anyone is interested, here’s the WSJ article :Zombie Condos, Angry Residents….”Author: Deborah Acosta, August 05, 2024. It’s really bad when you own a place, your permanent home, and some developers essentially strangle you our of ownership. There’s even a retired lawyer who couldn’t fend off these developers. Not to mention a marginally mobile 85 year old. However, think it’s being adjudicated. Also have written this before, I have to wonder how much housing in Boston is occupied by university students. Too bad there isn’t a law such that a high percentage of students must be in a dorm not taking up housing for regular people who can create a neighborhood. Nothing is going down in price, Dee. That’s the sad reality here, unless we have a recession. If you can’t even hold onto your home, a condo, because you’re being bullied out, it’s not good.

  16. Every day, as thousands of illegal immigrants are allowed into the US, PERMANENT housing must be provided for them.
    EVERY DAY. It’s simple math.
    Temporary shelters are not enough and are sort term.
    Sure, some will crowd into existing housing. Is that a good thing? No.
    What people don’t know is that illegal immigrants put pressure on rents and cause them to rise. It’s obvious.
    Here is what Will won’t address: https://dailycaller.com/2024/05/22/illegal-immigration-contributed-housing-shortage-experts/#google_vignette
    Will is a nice guy, educated, and a hard worker.
    But there are issues he won’t address such as illegal immigration and crime.
    That’s not a surprise. Dems in general don’t care either.

  17. After ww2 the soldiers came back and were afforded dignity in the form of housing being considered a basic need. Not sure I!m going with this this except wt?

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