HOUSE DOCKET, NO. 4634 FILED ON: 10/18/2023
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OFFICE OF THE GOVERNOR
COMMONWEALTH OF MASSACHUSETTS
STATE HOUSE · BOSTON, MA 02133
(617) 725-4000
MAURA T. HEALEY KIMBERLEY DRISCOLL
GOVERNOR LIEUTENANT GOVERNOR
October 18, 2023
To the Honorable Senate and House of Representatives,
I am pleased to submit for your consideration “The Affordable Homes Act.”
The Commonwealth faces an increasing housing shortage. The demand for both market
rate and affordable housing has significantly increased, and the Executive Office of Housing and
Livable Communities estimates that the Commonwealth must produce 200,000 homes by 2030
to tackle the existing housing shortage and meet growing demand. This legislation, together with
the increases to the Low-Income Housing Tax Credit and the Housing Development Incentive
Program, enacted in An Act to improve the Commonwealth’s competitiveness, affordability, and
equity, are projected to create over 40,000 new homes and preserve or support an additional over
27,000 homes over the next 5 years. An additional 114,000 market-rate homes are already
completed, under construction, or in the pipeline for completion by 2030 if conditions allow
them to move forward. The legislation I file today will accelerate production to reach our
200,000 home goal and help ensure that a significant portion of that goal is comprised of long-
term affordable housing.
This legislation proposes not only a comprehensive funding strategy to increase the
supply of housing, rehabilitate and modernize public housing, and support affordable housing
opportunities for our residents across the state, but also recommends policy initiatives to address
fair housing and equity concerns, provides critical protections to vulnerable tenants and authority
for cities and towns to raise revenue to address their unique affordable housing needs.
The bond authorization I propose today will provide $4.12 billion in capital authorization
to support the following key initiatives:
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• Investing in Public Housing
o $1.5 billion in new capital authorization to make capital improvements across the
over 43,000 units of state-aided public housing, including $150 million dedicated to the
decarbonization of public housing and $15 million for accessibility upgrades.
o $100 million in new capital authorization for the Public Housing Demonstration
Program to encourage housing authorities to pursue innovative, market-driven strategies and
leverage private resources.
• Driving Housing Production & Preservation
o $800 million in new capital authorization for the Affordable Housing Trust Fund
to support private affordable housing development.
o $425 million in new capital authorization for the Housing Stabilization and
Investment Trust Fund to support preservation, new construction, and rehabilitation projects.
o $275 million in new capital authorization for sustainable and green housing
initiatives:
Accelerate and support innovative housing strategies, including repurposing
existing commercial or office space for housing development. This authorization will also
support a new social housing demonstration program;
Develop transit-oriented housing; and
Support the creation and rehabilitation of sustainable and climate resilient
affordable multifamily housing.
o $50 million in new capital authorization for a Momentum Fund to capitalize a
permanent, revolving fund and seeded through state and private investment, to accelerate
development of mixed-income multifamily housing.
o $175 million in new capital authorization for the HousingWorks Infrastructure
Program.
o $50 million in new capital authorization for the Neighborhood Stabilization
Program for redevelopment, reconstruction, repair, acquisition, and rehabilitation of abandoned
and foreclosed properties.
o $35 million in new capital authorization for Housing Choice Grants.
o $30 million in new capital authorization to support efforts to utilize state surplus
land for housing and other purposes.
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o $25 million in new capital authorization for Community Planning Grants.
o $20 million in new capital authorization to recapitalize the 40R Smart Growth
Housing Trust Fund.
• Supporting Vulnerable Populations
o $200 million in new capital authorization for the Housing Innovations Trust Fund
to support innovative and alternative forms of rental housing for residents who need extensive
support services.
o $70 million in new capital authorization for the Facilities Consolidation Fund to
create community-based housing in rental developments for clients of the Departments of
Developmental Services and Mental Health.
o $60 million in new capital authorization for the Home Modification Loan
program to provide loans to make access and safety modifications to the homes of persons with
disabilities and seniors.
o $55 million in new capital authorization for the Community-Based Housing
program to create housing for people with disabilities.
o $50 million in new capital authorization for the Early Education and Out of
School Time program to help build early education facilities that children from families with low
incomes.
• Supporting Middle Income & Home Buyers
o $100 million in new capital authorization to support the creation of affordable
homeownership units through the CommonWealth Builder program.
o $100 million in new capital authorization to support the creation of mixed-income
rental housing that is affordable for households whose incomes are too high for traditional
subsidized housing but are priced out by market rents.
o $50 million, included within the authorization of the Affordable Housing Trust
Fund, to support first-time homebuyers through the MassDREAMS program.
The bill also contains tax credit proposals to help support our community development
corporations and their work creating affordable housing and livable communities and a new
homeownership production tax credit program:
• Making the Community Investment Tax Credit permanent and increasing it from
$12 million to $15 million per year to support the work of community development corporations.
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• Creating a new Homeownership Production Tax Credit to award up to $10 million
in tax credits annually to produce homes affordable to moderate-income first-time homebuyers.
Finally, this bill includes policy proposals and statutory changes to address the
Commonwealth’s housing shortage, establish tenant protections, and provide additional tools for
localities to address their unique affordable housing needs. Key highlights include:
• Unlocking Housing Production and Preservation
o Requiring the Executive Office of Housing and Livable Communities to prepare a
statewide housing plan every five years.
o Allowing accessory dwelling units to be built by-right in single family zoning
districts in all communities.
o Adding inclusionary zoning to the list of zoning changes municipalities may pass
by simple majority.
o Establishing a temporary streamlined process for the disposition of land under the
control of state and public agencies for housing purposes.
o Establishing a Supportive Housing Pool Fund to provide critical assistance for
supportive housing by funding staffing, management, service coordination and other tenancy-
related services not funded through other sources.
o Public housing reforms to allow housing authorities to operate more effectively
and efficiently, reduce maintenance backlogs, and ensure resident protections.
• Supporting Local Communities
o Establishing a local option real estate transfer fee of 0.5% - 2% paid by the seller
of property on the portion of the sale over $1 million, or the county median home sales price,
whichever is greater. Revenue raised through a real estate transfer fee would be required to be
used for affordable housing purposes, including for public housing, through a community’s
municipal affordable housing trust fund.
o Creating a “seasonal communities” designation to create housing policies and
resources to better serve the needs of these communities.
o Reforming the Commonwealth’s receivership statute to permit courts to allow the
sale of vacant properties in receivership to nonprofits for fair market value to rehabilitate and sell
affordably to income-eligible first-time homebuyers.
• Fair Housing & Tenant Protections
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o Establishing an Office of Fair Housing within the Executive Office of Housing
and Livable Communities to support and coordinate enforcement initiatives, fair housing testing
and outreach/education.
o Establishing a process for tenants to petition a court to seal eviction records.
• Commissions
o Establishing a Senior Housing & Age-Friendly Communities Commission to
recommend policy, programs, and investments to expand the supply of sustainable, broadly
affordable supportive senior housing and appropriate community supports.
o Establishing a commission to recommend policy, programs, and investments to
expand the supply of housing affordable to households with extremely low incomes for those
earning not more than 30% of the Area Median Income.
This housing bond bill will help strengthen our communities through the preservation and
creation of affordable housing. I urge you to enact this legislation promptly to ensure that we
meet the housing needs of the people of the Commonwealth.
Respectfully submitted,
Maura T. Healey,
Governor
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The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act the Affordable Homes Act.
Whereas, The deferred operation of this act would tend to defeat its purpose, which is to
authorize forthwith the financing of the production and preservation of housing for low and
moderate income citizens of the commonwealth and to make related changes in certain laws,
therefore it is hereby declared to be an emergency law, necessary for the immediate preservation
of the public convenience.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. To provide for a capital outlay program to rehabilitate, produce and
2 modernize state-aided public housing developments; to preserve the affordability and the income
3 mix of state-assisted multifamily developments; to support home ownership and rental housing
4 opportunities for low and moderate income citizens; to stem urban blight through the
5 implementation of housing stabilization programs; to support housing production for the elderly,
6 disabled and homeless; to preserve housing for the elderly, the homeless and low and moderate
7 income citizens and persons with disabilities; to develop facilities for licensed early care and
8 education and out of school time programs; and to promote economic reinvestment through the
9 funding of infrastructure improvements, the sums set forth in sections 2 to 5, inclusive for the
10 several purposes and subject to the conditions specified in this act, are hereby made available
11 subject to the laws regulating the disbursement of public funds.
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12 SECTION 2.
13 EXECUTIVE OFFICE OF EDUCATION
14 Department of Early Education and Care
15 3000-0411. For the purpose of state financial assistance in the form of grants for the
16 Early Education and Out of School Time Capital Fund for the development of eligible facilities
17 for licensed early care and education and out of school time programs established in section 18
18 of chapter 15D of the General Laws; provided, that the department of early education and care
19 may contract with quasi-public or non-profit entities to administer the program, including, but
20 not limited to, the Community Economic Development Assistance Corporation established in
21 chapter 40H of the General Laws; provided further, that the department may develop or finance
22 eligible facilities, may enter into subcontracts with nonprofit organizations established pursuant
23 to chapter 180 of the General Laws or organizations in which such nonprofit corporations have a
24 controlling financial or managerial interest; provided further, that the department shall consider:
25 (i) a balanced geographic plan for such eligible facilities when issuing the funding commitments;
26 and (ii) funding large group and school age child care centers, as defined by the department of
27 early education and care; provided further, that the services made available pursuant to such
28 grants shall not be construed as a right or entitlement for any individual or class of persons to the
29 benefits financing; provided further, that no expenditure shall be made from this item without the
30 prior approval of the secretary of administration and finance; and provided further, that eligibility
31 shall be established by regulations promulgated by the department pursuant to chapter 30A of the
32 General Laws for the implementation, administration and enforcement of this
33 item.......................... $50,000,000
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34 SECTION 3.
35 EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE
36 Office of the Secretary
37 1100-2518. For costs associated with planning and studies, the preparation of plans and
38 specifications, demolition, remediation, construction and relocation of utilities, construction and
39 reconstruction of infrastructure, predevelopment, and site preparation; provided, that any funds
40 received by a state agency in connection with projects funded from this item may be retained by
41 the executive office for administration and finance and expended for the purposes of the project,
42 without further appropriation, in addition to the amounts appropriated in this item; provided
43 further, that where appropriate, the commissioner of capital asset management and maintenance
44 may transfer funds authorized herein in accordance with a delegation of project control and
45 supervision process pursuant to section 5 of chapter 7C of the General Laws or for the
46 capitalization of the surplus real property disposition fund established in section 106; and
47 provided further, that funds from this item shall be distributed in furtherance of affordable
48 housing production goals and availability of sites suitable for construction or expansion of
49 housing opportunities in the commonwealth in consultation with the secretary of housing and
50 livable communities........................... $30,000,000
51 SECTION 4.
52 EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES
53 7004-0069. For a program of loans or grants to assist homeowners or tenants with a
54 household member with blindness or severe disabilities in making modifications to their primary
55 residence for the purpose of improving accessibility or to allow those individuals to live
56 independently in the community or for construction costs to allow for the building of an
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57 accessory unit, which shall mean a unit constructed as an additional dwelling unit separate from
58 the primary dwelling unit, for a person with disabilities or an elder needing assistance with
59 activities of daily living; provided, that not more than 10 per cent shall be used for grants to
60 assist landlords seeking to make modifications for a current or prospective tenant with
61 disabilities, who but for such a grant would be unable to maintain or secure permanent housing;
62 provided further, that the secretary of housing and livable communities and the secretary of
63 health and human services shall take all steps necessary to minimize the program’s
64 administrative costs; provided further, that the secretary of health and human services may
65 contract with quasi-public or non-profit entities to administer the program, including, but not
66 limited to, the Community Economic Development Assistance Corporation established in
67 chapter 40H of the General Laws; provided further, that the program shall be available pursuant
68 to income eligibility standards approved by the secretary of health and human services; provided
69 further, that the repayment of the loans may be delayed until the sale of the principal residence
70 by the homeowner; provided further, that persons residing in a development covered by section 4
71 of chapter 151B of the General Laws shall not be eligible for the program unless the owner can
72 show that the modi