In a significant move to address the housing crisis in Massachusetts, the Healey-Driscoll Administration, in collaboration with MassHousing, has unveiled the inaugural financing commitment under the much-anticipated Momentum Fund, aimed at spurring the construction of reasonably priced, mixed-income housing units across the state. This initial commitment promises a new lease of life for the development of the Residences at East Milton in Milton, which will see the creation of 92 mixed-income rental homes, including 23 designated as affordable, according to an announcement by Massachusetts government officials.
This groundbreaking fund, a component of the Affordable Homes Act, is seen as a pivotal addition to the state's arsenal for tackling housing shortages, specifically aiming at bolstering middle-income housing production by blending low-cost state capital with expertise from the private sector. The administration’s goal is ambitious but crucial – to lay the groundwork for what could be at least 1,000 multifamily units using $50 million of the state's investment capital, as MassHousing indicated while mapping out their future expansion strategies with potential co-investment deals. Governor Maura Healey, exhibiting clear enthusiasm, affirmed that the $5 billion instrument under the Affordable Homes Act bolsters efforts to up the ante on housing construction for all income brackets. She stressed that they are "excited to announce this major milestone in its implementation," a statement echoed by Lieutenant Governor Kim Driscoll, who attested to the transformative nature of the Momentum Fund as it aims to escalate development of diverse housing types, as reported by the Massachusetts government.
Historically, Massachusetts has taken progressive steps in enabling finance for affordable housing, but the state recognizes the spectrum of housing needs extends well beyond traditional constraints; the Healey-Driscoll Administration has acknowledged the need for over 200,000 new homes by 2035 to support economic growth and fulfill the housing necessities of residents across income levels, the Momentum Fund is the state's response to bridge the gap, facilitating public-private partnerships to prompt the construction of more housing that caters to a wider demography, as Secretary Ed Augustus from the Executive Office of Housing and Livable Communities put forth the idea that the fund's revolving nature promises sustained development for future projects and MassHousing CEO Chrystal Kornegay spotlighted the fund's critical role in leveraging private investment.
The Momentum Fund deviates from the traditional script by not being a subsidy or grant and presents an adaptable alternative equity for developers which is designed to work in tandem with private capital, thus revolutionizing the typical financial pressures faced by developers, the Residences at East Milton, praised by Joseph J. Corcoran, founder and CEO of the Joseph J. Corcoran Company, stands as the vanguard of this initiative, which will not only provide crucial housing solutions but also rejuvenate the local urban landscape; Corcoran expressed gratitude towards the administration for this partnership venture, asserting "together, we can move the needle on affordable housing solutions across the Commonwealth," as noted by the Massachusetts government.
Backing the Healey-Driscoll Administration's housing strategy, Tamara Small, CEO of NAIOP Massachusetts, and Rachel Heller, CEO of CHAPA, have thrown their support behind the Momentum Fund, recognizing its unique position as a pivotal tool for generating mixed income housing and for framing the future of housing across Massachusetts communities, with Small telling Massachusetts government that they are "thrilled to see it being implemented to create desperately needed new housing." MassHousing, which finances itself through bonds to support low- and moderate-income homebuyers and developers, has a longstanding history of contributing to housing finance, charting more than $29 billion in housing finance and reinforcing its commitment through such innovative initiatives to fortify the state's foundation for economic growth.
