Legislature Passes FY2024 Budget

by | Aug 2, 2023 | Housing News

On July 31st, the House and Senate passed a roughly $56 billion dollar budget (H.4040) for fiscal year 2024 which began on July 1st. The Legislature has also passed a second interim budget to continue the government payroll and operations through August while Governor Healey reviews the FY2024 budget.

Please refer to the CHAPA Budget Priority chart for funding amounts for affordable housing. Below is the summary of some critical programs:

  • Mass. Rental Voucher Program (MRVP) – MRVP is funded at $179 million along with language to:
    • Establish a payment standard aligned with Section 8 up to 110% Fair Market Rent or Small Area Fair Market rent
    • Allows use of a higher payment standard as a reasonable accommodation or otherwise at the discretion of the executive office
    • Cap the tenant rent share to 30% of their income towards rent when using the payment standard
    • Allows a tenant to choose a unit with rent above the payment standard, while also allowing the tenant rent share beyond 40%
    • Carry forward the unspent funds from FY23 bringing the MRVP total allocation at ~$200 million.
  • Alternative Housing Voucher Program (AHVP) – AHVP is funded at $16 million  along with language to:
    • Allow project-basing of AHVP vouchers, similar to MRVP
    • Allow AHVP maximum rents use up to 110% of the Small Area Fair Market Rent
    • Carry forward the unspent funds from FY23 bringing the AHVP total allocation at ~$26 million.
  • Residential Assistance for Families in Transition (RAFT) – The Legislature funds RAFT at $190 million. The Legislature also establishes a $7,000 cap for RAFT benefit over a 12-month period.
  • Public Housing – The Legislature allocates $107 million in funding for the Public Housing Operating line item. It also adds language to exempt Local housing authorities and non-profits from any funding cuts through the Local Capital Projects Fund (LCPF) if the communities they are based in are not compliant with section 3A of the MBTA Multifamily zoning law.
  • HomeBASE – The Legislature allocates $37 million for HomeBASE. The language increases the benefit amount to $30,000 over a 2-year period and allows EOHLC the discretion for an additional $15,000 benefit for another 12-month period for stabilizing a household.
  • CPA – The Legislature did not include any transfers to the Massachusetts Community Preservation Trust Fund in this budget.
  • Chapter 257 – The FY2024 included the Chapter 257 protections for pausing evictions in cases of non-payment of rent if the tenants had an ongoing RAFT application.

Please refer to CHAPA’s detailed language analysis of the Legislative Budget for FY2024.

CHAPA thanks Senate President Spilka, House Speaker Mariano, Chairman of Ways & Means Committee, Sen. Rodrigues and Rep. Michlewitz, Members of the Ways & Means Committee, Chairman of Housing Committee, Sen. Edwards and Rep. Arciero, and all the legislators for historic investments in affordable housing priorities.

Line-Item Program FY2024 Requests Conference Budget Senate FY24 Budget House FY24 Budget FY24 Gov’s Budget FY23 Budget
7004-9024 Mass. Rental Voucher Program $250,000,000 $179,597,023* $179,597,023* $173,247,567* $168,247,567 $154,000,000
7004-9030 Alternative Housing Voucher Program $26,000,000 $16,863,078** $16,863,078** $14,108,528** $14,108,528 $13,685,355
7004-9316 Residential Assistance for Families in Transition $250,000,000 $190,000,000 $195,000,000 $180,602,462 $162,602,462 $150,000,000
7004-9005 Public Housing Operating $184,000,000 $107,000,000 $107,000,000 $102,000,000 $92,000,000 $92,000,000
7004-3036 Housing Consumer Education Centers $10,185,000 $10,474,000 $8,974,000 $9,700,000 $8,774,000 $9,700,000
7004-9007 Public Housing Reform $7,700,000 $1,315,000 $1,250,000 $2,200,000 $2,200,000 $1,000,000
7004-0104 Home & Healthy for Good $8,390,000 $8,890,000 $6,390,000 $8,890,000 $4,162,300 $6,390,000
7004-0108 HomeBASE $60,000,000 $37,070,445 $39,570,445 $42,070,445 $42,070,445 $59,411,201
7006-0011 Foreclosure & Housing Counseling $3,050,000 $3,050,000 $3,050,000 $3,050,000 $1,500,000 $3,050,000
7004-3045 Tenancy Preservation Program $2,000,000 $2,042,755 $2,042,755 $2,042,755 $2,042,755 $1,800,000
4120-4001 MassAccess Registry $150,000 $150,000 $150,000 $150,000 $150,000 $150,000
4000-0007 Unaccompanied Homeless Youth $12,000,000 $11,000,000 $11,000,000 $10,545,850 $10,545,850 $9,500,000
7004-0106 New Lease for Homeless Families $250,000 $250,000 $250,000 $250,000 $250,000 $250,000
NEW Fair Housing Trust Fund $1,500,000   – – – –
NEW Access to Counsel Program $7,000,000   – – – –

HUD Announces Stability (Housing) Vouchers to address Homelessness

by | Jun 14, 2023 | Housing News

On June 5th, the U.S. Department of Housing and Urban Development (HUD) announced housing vouchers to address homelessness among people in unsheltered settings and in rural communities across U.S. HUD is awarding $45 Million for 3,379 Stability Vouchers to 135 public housing authorities and partnering Continuum of Care (CoC) communities across the United States.

Massachusetts is set to receive 54 Stability Vouchers with $1,395,162 in funding. These grants and vouchers comprise a new kind of package of federal resources to help communities make continued progress in reducing homelessness. The Stability Voucher Program makes Housing Choice Voucher (HCV) assistance available through a competitive process to PHAs who are partnering with local Continuum of Care (CoCs) and/or Victim Service Providers to assist households experiencing or at risk of homelessness, those fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, human trafficking, and veterans and families that include a veteran family member that meets one of the proceeding criteria.

For more details, visit HUD’s official announcement. The full list of PHAs to receive funding is available here. 

Senate Ways & Means includes LIHTC in the latest Tax relief bill

by | Jun 13, 2023 | Housing News

On June 8th, the Committee on Senate Ways & Means unveiled its proposal for a Tax relief bill S.2397 An Act to improve the Commonwealth’s competitiveness, affordability, and equity. This bill includes raising the state’s Low-Income Housing Tax Credit (LIHTC) program authorization by $20 million for a total annual allocation of $60 million.

The Massachusetts LIHTC awards tax credits to investors in affordable multifamily rental projects. It encourages private investment in affordable housing and allows developers to finance part of the cost of the development with equity invested by local corporations and individuals to help keep rents low. LIHTC is a critical resource in many affordable housing projects across Massachusetts. Here is the full summary of the Senate Ways & Means proposal of the bill.

The Legislature has appointed a Conference Committee to reconcile the differences between the two versions of the bill:

The Tax bill also includes the following tax changes:

  • Extension of Brownfields Redevelopment Tax Credit to 2028
  • Increase to the availability and size of grants/ loans from the Brownfields Redevelopment Fund
  • Exclusion of grant/ loan from the Brownfields Redevelopment Fund that has not been repaid from net response and removal costs
  • Increase in Housing Development Incentive Program (HDIP) tax credit annual cap from the current $10 million to $30 million for 2024 and beyond
  • Increases HDIP annual cap to $57 million only for the calendar year 2023
  • Increase in Rental Deduction cap from $3,000 to $4,000
  • Increase in the Earned Income Tax Credit (EITC) from 30% to 40%
  • Increase in Child & Dependant Tax Credit (CITC) from $180 to $310 per child/ dependant and removes cap on number of eligible children/ dependants
  • Increase tax credit for full lead paint abatement to $3,000 and $1,000 for a partial abatement
  • Increase in maximum available Title V septic tax credit from $6,000 to $18,000 and increase in the amount claimable per year from $1,500 to $4,000
  • Increase in the senior circuit breaker tax credit cap from $750 to $1,500
  • Allow municipalities to adopt local property tax exemption for real estate rented by a person with income less than 130% AMI
  • Exemption of estates valued under $2 million from estate tax and eliminate tax cliff by establishing uniform credit of $99,600 for all estates subject to estate tax.

The House version of the Tax bill did not include HDIP or LIHTC provisions.

Expiring Pandemic related Federal Provisions Impacting Programs related to Homelessness

by | May 26, 2023 | Housing News

The U.S. Interagency Council on Homelessness (USICH) issued an inventory of all the funding, flexibilities, and waivers that expired on May 11th as the COVID-related public health emergency ended. The status and timelines of these provisions continue to evolve. For questions, contact USICH senior regional advisor.

Full list of Expiring Federal Provisions That May Impact Homelessness

Senate Concludes FY2024 Budget Debate!

by | May 24, 2023 | Housing News

The Senate added nearly $82.2 million in spending making the FY2024 fiscal budget total nearly $56 billion as it concluded the debate on its budget on May 27th. From the CHAPA’s priority amendments, #66 on Community Preservation Act was adopted.

The House and Senate will now reconcile the differences in the two budget proposals through the Conference Committee.

CHAPA Budget Priority Chart. Below is the summary of some critical programs:

  • Mass. Rental Voucher Program (MRVP) – The Senate funds MRVP at almost $200 million (compared to $180 million by the House) including the leftover funds of $20 million from FY2023. The Senate also adds language to
    • Sets payment standard at 110% of the Fair Market Rent and allows the use of Small Area Fair Market Rents
    • Allows use of a higher payment standard as a reasonable accommodation or otherwise at the discretion of the executive office
    • Caps the tenant rent share to 40% of their income towards rent after the first year of participation in the program
  • Alternative Housing Voucher Program (AHVP) – The Senate allocated $16 million along with language to carry forward $10 million in unspent funds from FY23 bringing the AHVP total allocation to $26 million, $2 million higher than the House.
  • Public Housing – The Senate proposes increased funding for the Public Housing Operating line item at $107 million compared to $102 million by the House.
  • Residential Assistance for Families in Transition (RAFT) – The Senate funds RAFT at $195 million ($15 million over the House’s proposal). The Housing Consumer Education Center line item is allocated at  $8.9 million in the Senate compared to $9.7 million in the House.
  • HomeBASE – The Senate allocated $39.5 million for this line item while the House level funded HomeBASE at $42 million with an increase in the benefit cap to $30,000 over 2 years and removal of income increases as terms of eligibility.

The Senate also adopted an amendment by Sen. Edwards related to Chapter 257 (Pandemic era law requiring a pause in eviction cases for nonpayment of rent if a tenant has a pending application for rental assistance programs like RAFT).
The budget amendment would do the following:

  • Keep the Chapter 257 provisions pause in place
  • Require courts to notify the state of any suspended eviction cases for officials to expedite a pending aid application, and for a tenant to get the case they face paused, their application for aid would need to be “made in good faith”
  • Require the courts to dismiss the landlord’s eviction claim if a tenant receives the emergency rental aid they sought and the “full amount” is paid to a landlord
    • In this case, allow tenants to petition to seal the court record

CHAPA thanks the Senate President, Karen Spilka, Chairman of the Senate Ways & Means (SWM) Committee, Michael Rodrigues, Members of the SWM Committee, Chairman of the Housing Committee, Lydia Edwards, and all the Senators for championing and supporting the affordable housing priorities.

Line-Item Program FY2024 Requests Senate FY2024 Budget House FY2024 Budget FY2024 Gov’s Budget FY2023 Budget
7004-9024 Mass. Rental Voucher Program $250,000,000 $179,597,023* $173,247,567* $168,247,567 $154,000,000
7004-9030 Alternative Housing Voucher Program $26,000,000 $16,863,078** $14,108,528** $14,108,528 $13,685,355
7004-9316 Residential Assistance for Families in Transition $250,000,000 $195,000,000 $180,602,462 $162,602,462 $150,000,000
7004-9005 Public Housing Operating $184,000,000 $107,000,000 $102,000,000 $92,000,000 $92,000,000
7004-3036 Housing Consumer Education Centers $10,185,000 $8,974,000 $9,700,000 $8,774,000 $9,700,000
7004-9007 Public Housing Reform $7,700,000 $1,250,000 $2,200,000 $2,200,000 $1,000,000
7004-0104 Home & Healthy for Good $8,390,000 $6,390,000 $8,890,000 $4,162,300 $6,390,000
7004-0108 HomeBASE $60,000,000 $39,570,445 $42,070,445 $42,070,445 $59,411,201
7006-0011 Foreclosure & Housing Counseling $3,050,000 $3,050,000 $3,050,000 $1,500,000 $3,050,000
7004-3045 Tenancy Preservation Program $2,000,000 $2,042,755 $2,042,755 $2,042,755 $1,800,000
4120-4001 MassAccess Registry $150,000 $150,000 $150,000 $150,000 $150,000
4000-0007 Unaccompanied Homeless Youth $12,000,000 $11,000,000 $10,545,850 $10,545,850 $9,500,000
7004-0106 New Lease for Homeless Families $250,000 $250,000 $250,000 $250,000 $250,000
NEW Fair Housing Trust Fund $1,500,000 – – – –
NEW Access to Counsel Program $7,000,000 – – – –

Tax Relief Bill: The Senate has additionally factored in $575 million to cover tax relief in a separate bill that still has not yet emerged while the House approved a tax relief bill (H 3770) with an estimated $587 million impact in FY24 and $1.1 billion once it fully takes effect over several years.