On July 9, 2026, the Healey-Driscoll administration rolled out $18.6 million in Housing Development Incentive Program (HDIP) tax credits for projects in six Massachusetts Gateway Cities, a move officials say will help create roughly 662 new homes and breathe life into underused downtown properties across the state. The announcement came at a redevelopment site in Fall River that state leaders used as a backdrop to showcase what they hope HDIP can do elsewhere.
According to Boston 25 News, the latest awards will support developments in Fall River, Lawrence, Lowell, Pittsfield, Taunton and Worcester. In Fall River, the Durfee Block Apartments project is set to receive $1.5 million to help revitalize a historic downtown building, and the full package is expected to produce about 662 homes across the six cities.
Speaking to Boston 25 News, Lieutenant Governor Kim Driscoll called Gateway Cities “critical to Massachusetts’ housing future” and cast the HDIP awards as a way to “create more homes, lower costs, revitalize downtowns.” Senator Michael J. Rodrigues said the tax credits were designed “to stimulate production and boost our housing supply,” stressing adaptive reuse as a key strategy for Gateway Cities trying to turn aging buildings into active residential space.
How HDIP Works and Recent Track Record
The Housing Development Incentive Program offers state tax credits to projects that turn underutilized commercial or historic buildings into housing, helping close financing gaps that might otherwise stall construction. As outlined by Mass.gov, the program’s cap was expanded in 2023, and the Healey-Driscoll administration has been pairing HDIP awards with other tools to speed up downtown conversions and new residential development.
Trade reporting suggests HDIP has already helped jump-start thousands of units in recent years. Banker & Tradesman reports that the tax credits have financed more than 2,700 new homes since 2023 and also notes criticism that the program tends to tilt toward market-rate housing rather than deeply subsidized affordable units. That tension has shaped how cities try to combine HDIP with other subsidies in order to hit their local affordability targets.
What This Means For Gateway Cities
Local officials and developers say HDIP can be the difference between a viable project and a dead letter, especially in post-industrial downtowns where adaptive reuse can preserve historic character while adding much-needed housing. The administration has emphasized that HDIP awards are meant to work alongside other state initiatives, including the Momentum Fund and programs aimed at converting commercial space into housing, as part of a multi-pronged push to increase the housing supply and bring down costs, according to Mass.gov.
For now, the immediate impact will depend on the details of each project. State awards help clear a major financial hurdle, but developers still have to navigate local permitting, secure full financing and get construction underway before any new units open. Officials say the broader aim is to spark longer-term private investment in these downtowns while using HDIP alongside other state resources to widen the range of homes that are affordable to local residents.
