Governor Healey Files FY27 Budget: Housing Highlights and What’s Next

Governor Healey Files FY27 Budget: Housing Highlights and What’s Next

Governor Healey has released her FY2027 (FY27) budget proposal, known as House 2 (H2). The proposal totals $60.114 billion in line-item spending excluding Fair Share surtax spending and the Medical Assistance Trust Fund, an increase of $2.015B (3.5%) over the FY26 General Appropriation Act (GAA).

Revenue & Budget

H2 is built on a $44.9B consensus tax revenue forecast (including $2.7B from the Fair Share surtax), with the remaining spending supported by other non tax revenue sources such as federal funds and other dedicated revenues.

A side-by-side overview of key housing line items, including FY26 GAA amounts, the Governor’s FY27 H2 proposal, and CHAPA’s funding asks, is available in CHAPA’s FY2027 Budget Tracker. The tracker will be updated as the budget moves through the House and Senate.

Affordable Housing Priorities

CHAPA is encouraged that, even in a tight fiscal environment, the Governor’s proposal continues to direct significant resources toward housing stability. The Administration highlights $1.2 billion in targeted investments at the Executive Office of Housing and Livable Communities (EOHLC).

Here are the funding levels for some of the key rental assistance and housing stability programs in the budget:

  • MRVP (Massachusetts Rental Voucher Program) (7004-9024)
    • FY26 GAA: $253,311,840
    • FY27 H2: $278,341,728
    • The Administration says this level is expected to support 11,500+ vouchers, including 340+ project-based vouchers.
  • AHVP (Alternative Housing Voucher Program) (7004-9030)
    • FY26 GAA: $19,461,214
    • FY27 H2: $19,263,183
    • The appropriation provide rental assistance through 890+ vouchers for persons with disabilities.
    • Updated Budget language: Outside Section 72 updates the AHVP statute to better align with MRVP, confirms AHVP can be issued as mobile or project-based vouchers, and places AHVP under EOHLC’s voucher-program authority by regulation rather than in the public housing statute framework.
  • RAFT (Residential Assistance for Families in Transition) (7004-9316)
    • FY26 GAA: $207,477,715
    • FY27 H2: $201,205,991
    • A crucial short-term eviction-prevention program and homelessness prevention program serving about 47,000 households each year.
  • HomeBASE (7004-0108)
    • FY26 GAA: $57,322,001
    • FY27 H2: $82,322,001
    • A state housing stabilization program that helps families leave Emergency Assistance shelter and stay housed by providing temporary financial help (up to $30,000 over two years) and case management support.

Homelessness, Shelter, and Housing Stabilization

H2 recommends $150M for programs supporting individuals experiencing homelessness (a 9% increase above FY26 GAA).

Key shelter and stabilization items include:

  • Winter Beds (7004-0111): $12M to support 800 additional shelter beds.
  • Homeless Individual Shelters (7004-0102): $114M to enable 2,800 shelter beds, plus day programming capacity (about 600 people), outreach, meals, and other supports.
  • EA (Emergency Assistance Family Shelter and Services) (7004-0101): $259M,  a 6% decrease below FY26 GAA, alongside $5M for security and accessibility grants (including upgrades like cameras, door alarms, and lighting improvements).
  • Family Shelter Diversion (7004-0110): $7.5M, described as a distinct diversion program using flexible financial assistance to help divert families from shelter.

Public Housing

For state public housing, the H2 proposal includes two main line items:

  • Public Housing Operating (7004-9005)
    • FY26 GAA: $115,600,000
    • FY27 H2: $117,810,000
  • Public Housing Reform (7004-9007)
    • FY26 GAA: $1,250,000
    • FY27 H2: $1,269,215

What’s next

The Governor’s proposal is the first step in a long budget process that now moves to the Legislature. While H2 maintains important housing investments, more must be done to meet the scale of housing need, especially as costs continue to rise and far too many Massachusetts residents struggle to find a home they can afford.

Over the coming months, CHAPA will be working with members and partners to advocate for the funding needed to address housing challenges across the Commonwealth. For a more detailed discussion of the Governor’s FY27 H2 proposal and to plug into shared advocacy strategy, please join the Building Blocks Coalition. The next Building Blocks Coalition meeting will be March 25th and you can register for the meeting here.

Governor Healey Signs FY2026 Budget: Housing Investments Move Forward, but HCEC Funding Faces Veto

Governor Healey Signs FY2026 Budget: Housing Investments Move Forward, but HCEC Funding Faces Veto

Governor Maura Healey has signed Massachusetts’ $61 billion FY2026 budget, which includes significant housing investments and policy reforms aimed at improving affordability and strengthening housing stability. Overall, the budget maintains or modestly increases funding for key programs, including a boost to the Massachusetts Rental Voucher Program (MRVP) from $219 million to $253.3 million to preserve assistance for existing participants, and $207.5 million for RAFT. Public housing operations received $115.6 million, while the Access to Counsel program was funded at $2.5 million and established as a permanent line item.

Policy shifts in the FY2026 budget include broker fee reform, which shifts the cost to whichever party first hires the broker—eliminating most renter-paid fees and significantly reducing up-front costs for tenants. The budget also advances the goals of the Unlocking Housing Production Act by promoting efforts to accelerate development through easing local barriers and exploring new tools for municipalities. These provisions support housing production through studies on tax incentives, inspection reform, and municipal authority, laying the groundwork for broader permitting and regulatory changes. Additionally, new language in the RAFT and HomeBASE programs directs the state to examine access barriers—such as “notice to quit” requirements and eligibility criteria—with the goal of improving program reach and responsiveness.

At the same time, funding for Housing Consumer Education Centers (HCECs)—which play a critical role in helping residents navigate evictions, access financial counseling, find housing, and utilize voucher programs—was significantly reduced. The Legislature approved $5.85 million for HCECs, already a 34.8% cut from the FY2025 level of $8.974 million. Governor Healey then vetoed $500,000 from that amount, lowering the final FY2026 allocation to $5.35 million. In FY2024, HCECs served more than 75,000 households statewide at an average cost of just $116 per household. With demand for services rising, the reduction in funding raises concerns about the capacity to support residents facing urgent housing challenges. CHAPA has submitted a letter urging the Legislature to override the Governor’s veto, emphasizing the need to restore critical funding to ensure these frontline services remain available as Massachusetts works to meet both immediate housing needs and long-term production goals.

You can view CHAPA’s full Budget Tracker here

Governor Healey Signs FY2026 Budget: Housing Investments Move Forward, but HCEC Funding Faces Veto

Conference Committee Approves FY26 Budget, Now Moves to Governor’s Desk

On June 30th, the Massachusetts Legislature approved a $61 billion FY2026 Conference Committee budget and sent it to the Governor for consideration. Marking the earliest completion of a budget in nearly a decade, the final agreement includes important progress on housing issues, with continued investments in rental assistance and supportive housing, along with key policy updates to broker fee practices, homelessness prevention programs like RAFT and HomeBASE, and provisions that establish studies aimed at reducing construction costs and streamlining development.These decisions come amid growing federal headwinds, these decisions come at a time when the state is facing additional challenges, including potential federal cuts to housing and safety net programs, which could put further strain on the housing system.

However, several high-priority programs were funded at the lower of the House or Senate proposals, and several key initiatives were ultimately not included.

As the budget moves to Governor Healey’s desk, she has 10 days to sign the budget into law. CHAPA is urging that the strongest funding levels and policy provisions be maintained. CHAPA is also drafting a letter to the Administration advocating for full support of these critical investments. These operating dollars are essential to addressing the urgency of the housing crisis and advancing stability, affordability, and equity across the Commonwealth. Key highlights from the final budget can be viewed below, and the full budget tracker is available here.

Key Policy Language

  • Residential Rental Broker Fees – Outside Sections 43, 54–55:
    New language clarifies that only the party that directly hires a broker is responsible for the fee, reducing financial barriers for tenants.
  • Unlocking Housing Production – Outside Sections 106–108:
    Directs studies on tax incentives, inspection reform, and local options to support housing development feasibility and affordability.

Programs with Maintained or Increased Funding

  • Rental Assistance:
    MRVP and AHVP were funded at $253.3 million and $19.5 million, respectively, sufficient to maintain the current number of vouchers, but not to increase the number of vouchers.
  • Supportive Housing & Reentry:
    Programs including Home & Healthy for Good, Sponsor-Based Housing, and Housing Assistance for Reentry Transition were level-funded or slightly increased.
  • Access to Counsel:
    Funded at $2.5 million. The “pilot” designation was removed, signaling an ongoing commitment to this crucial program.
  • Public Housing:
    Operating subsidies were funded at $115.6 million, slightly below the Senate’s proposal but above the FY2025 level.
  • Fair Housing
  • $275,000 earmarked for regional fair housing centers,
  • Homeownership
    $500,000 was dedicated to STASH, supporting first-generation homebuyers.

Programs Funded Below Requests or Prior-Year Levels

  • RAFT:
    Funded at $207.5 million, set at the House’s level. The final budget does include language directing EOHLC to evaluate program barriers, including the “notice to quit” requirement.
  • HomeBASE:
    Level-funded at $57.3 million. The budget retains language requiring EOHLC to study eligibility improvements, including potential expansion beyond Emergency Assistance eligibility.
  • Housing Consumer Education Centers (HCECs):
    Funded at $5.85 million, a partial restoration from earlier proposals, but still below FY2025 levels.
  • EOHLC Administration:
    Funded at $16 million, above the House and Senate budgets, but below the $22.2 million called for in the Governors’ proposal earlier this year.

Not Included in Final Budget

  • Tenancy Preservation Program (TPP): No funding included; program will rely on MassHousing support.
  • Office of Fair Housing and Fair Housing Trust: Proposed $5 million was not included.
  • Healthy Homes Program: A proposed $5 million to address mold, lead, and other hazards was withdrawn.
  • Small Properties Acquisition Fund: Not included in the final budget.

New Report Highlights the Value of the Massachusetts Rental Voucher Program and How It Can Be Strengthened

Earlier this month, The Boston Foundation and the MassINC Polling Group released Voices of Experience: What Works, What Frustrates, and What to Do to Strengthen the Massachusetts Rental Voucher Program. The report draws on surveys, interviews, and focus groups with MRVP tenants and landlords across Massachusetts. It was developed in partnership with United Way of Massachusetts Bay, CHAPA, Metro Housing|Boston, the Regional Housing Network, BAMSI, and La Colaborativa, with support from the Executive Office of Housing and Livable Communities (EOHLC).

The report confirms that the MRVP plays a vital role in promoting housing stability, supporting employment, and ensuring consistent rental income for landlords. At the same time, it identifies opportunities to improve the program’s effectiveness by addressing administrative challenges. Participants and landlords noted areas where clearer communication, more timely processing, and better access to support could make a meaningful difference. While many participants benefit from the program, some continue to face difficulty affording their rent share or achieving long-term financial security. The report recommends building on MRVP’s strengths by codifying and expanding the program, improving agency responsiveness, enhancing outreach and education efforts, and removing barriers to economic mobility for participants.

Read the full report here

Resources

Homeowner Resources Foreclosure and Post-Purchase Housing Counseling Agencies K L Boston City of Boston Home Center BostonServices: Foreclosure Counseling (617) 635-4663 City of Boston Office of Housing Stability BostonServices: Rental/Eviction Counseling(617)...