MASSACHUSETTS HOUSE PASSES HOUSING BOND BILL JUNE 5, 2024
$6.5 billion bond bill is the largest housing investment in state history
BOSTON – June 5, 2024 – The Massachusetts House of Representatives today 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.
The Affordable Homes Act is the largest housing investment in state history and attempts to meet the moment for our state’s housing landscape and people struggling with housing availability and housing security.
The bill 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 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 policy initiatives included in the bill to create more housing, the bill permits one accessory dwelling unit (ADUs) be built by-right on a property in single-family zoning districts in all Massachusetts communities. Unfortunately, an amendment Rep. Domb filed to permit these ADUs when they or the primary residence on the property would be owner occupied failed.
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
- $55 million to support appropriate housing for people with disabilities who are not DMH or DDS clients
- $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 precent 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
- $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
- $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
- $20 million to provide incentive payments to municipalities who adopt smart growth housing districts
Third Hampshire Bond Authorizations: Rep. Domb successfully secured $3 million in bond authorizations specifically designated for the 3rdHampshire District. These amendments included:
- $500,000 for the Amherst Municipal Affordable Housing Trust for planning the development of affordable housing projects on municipal property in Amherst.
- $1 million for the Amherst Housing Authority for maintenance or capital improvement on properties located in the town of Amherst.
- $500,000 for the Granby Housing Authority for maintenance or capital improvement.
- $1 million for the Amherst Housing Authority to implement clean energy modifications on properties in the town of Amherst.
A number of amendments she filed which involved both funding and policy, and reflected the unique housing needs of the Amherst community, were not adopted.
Having passed the House of Representatives 145-13, the bill now goes to the Senate for its consideration.
June 6, 2024
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Media
WGBH: Mass. House approves 5-year, $6.5-billion housing bill