The Affordable Homes Act
On July 31st, 2024 the Massachusetts Legislature passed H.4977, An Act relative to the affordable homes act, and is now pending before the Governor for her signature. The Governor has 10 days (from the bill’s passage) to sign the legislation. If she does not sign the bill within 10 days, it automatically becomes law.
This $5.16 billion housing bond bill authorizes funding to modernize and rehabilitate state-aided public housing, support affordable housing and home ownership for low- and moderate-income individuals, enhance facilities for early education and out-of-school programs, and improve infrastructure to promote economic reinvestment.
While the final bill that was passed includes a high bonding number, not all of the borrowing capacity may be used. The state plans for actual capital spending that was released last month dedicated $2 billion for housing over the next 5 years, and $400 million in FY25, a 30% increase over FY24.
One of the bills I filed, H.2876, An Act to promote high-impact community investment (Community Investment Tax Credit, or CITC), was included in the final bill. This provision amended the CITC by eliminating the program’s 2025 sunset and expanding the statewide cap on donations from $12 million to $15 million. This will help continue fueling resident-led community development that has driven inclusive opportunity across the Commonwealth since 2014. Since the program’s launch CITC has helped Massachusetts community development organizations raise more than $100 million, and provide a 50% refundable state tax credit for donations made to qualifying Community Development Corporations (CDCs).
The bill also includes an eviction sealing measure that was included in the original bill proposal from Governor Healey. This provision provides a process for tenants to petition the court to seal an eviction record for no-fault evictions, solely non-payment evictions, and all other fault evictions. It also prohibits consumer reporting agencies from disclosing information in a sealed eviction record. This does not in any way alter the rights of the landlords or property owners, as it allows all parties to exercise their legal rights, it simply helps to protect tenants from being unfairly branded with an eviction record.
Another provision that made it into the final bill allows accessory dwelling units (ADUs) by right in single-family zones across Massachusetts. Many communities across the state have taken steps at the local level to allow ADUs, but barriers to cost-effective and timely construction are often embedded in these local policies. This bill removes some of these barriers while leaving flexibility for cities and towns to customize ADU policies for their local contect, particularly for short term rentals. I am hopeful that this provision will aid aging residents in the state who want to downsize their homes, but can not find a smaller home in their community that fits their price range, the opportunity to stay local.
While the final bill does not include all of the policy proposals that were included in the House’s version of the bill, I am appreciative of my colleagues for reaching a compromise on this legislation that will help to tackle the Commonwealth’s ongoing housing crisis. I look forward to the Governor signing this important piece of legislation into law.