The Healey-Driscoll Administration in Massachusetts has announced a $4 billion plan, the Affordable Homes Act, earlier today, according to mass.gov.
Today, the Affordable Homes Act, a historic investment in the state's housing sector, was unveiled. The funding will predominantly support low- and moderate-income households, accommodating population growth, lowering costs, and achieving a healthy vacancy rate.
The Affordable Homes Act will fund the creation of over 40,000 homes, including 22,000 new homes for low-income families and 12,000 for middle-income households. Moreover, the plan also aligns with the tax relief package signed by Governor Healey on October 4th, aiming to preserve, rehabilitate, or improve the resilience of 12,000 homes for low-income households, assist over 11,000 moderate-income households, and fund accessibility enhancements for 4,500 homes.
To acknowledge the vital role of public housing, the administration has planned a significant investment in this area. According to Governor Maura Healey and Lt. Governor Kim Driscoll press release, a total of $1.6 billion was allocated for the repair, rehabilitation, and modernization of the state's over 43,000 public housing units. Public housing will also "decarbonize" through a $150 million allocation to transition to heat pumps and electrical appliances in 3,000 units, and an additional $15 million is set for accessibility upgrades.
The Affordable Homes Act also includes critical green building investments which align with the administration's climate goals. $115 million has been allocated toward ensuring new affordable housing developments maintain increased standards. The bill also makes it mandatory for all housing investments to incorporate the state's climate and decarbonization goals.
To further support the local communities, the Affordable Homes Act will allow the adoption of a real estate transaction fee from 0.5 percent to 2 percent on property sales over $1 million or the county median home sale price. This fee, projected to impact under 14 percent of all residential sales, will be charged to the property seller, with the funds going toward affordable housing development within the community. With the Act, communities are permitted to set reasonable restrictions, with the potential to create more than 8,000 accessory dwelling units over five years.
Three executive orders will be signed by Governor Healey to address the housing crisis, creating a Housing Advisory Council to craft a statewide housing plan, establishing an Unlocking Housing Production Commission to develop housing production streamlining recommendations and directing state agencies to create an expanded inventory of state-owned land suitable for housing.
Garnering widespread support, the Affordable Homes Act has been endorsed by various stakeholders including representatives from Citizens’ Housing and Planning Association, Massachusetts Building Trades Council, Massachusetts Union of Public Housing Tenants, and Massachusetts Business Roundtable. These organizations recognize the importance of a comprehensive approach to solve the state’s housing crisis and appreciate the historic investment's scale and scope.
