Bonding Committee Releases Economic Development Bill (H.4977)

by | Jul 6, 2022 | Housing News

On July 5, the Joint Committee on Bonding advanced an Economic Development Bill (H.4977), originally filed by Governor Baker and reported out favorably by the Joint Committee on Economic Development. The Bonding Committee made minor changes to the bill and still contains the nearly $270 million in capital authorizations for affordable housing programs, a more than tripling of the Housing Development Incentive Program (HDIP), and reforms to increase housing authorities’ ability to rehabilitate and improve public housing. The bill is now before the House Committee on Ways and Means, which will likely prepare the bill for a vote in House before sending the bill to the State Senate.

The Bonding Committee made one substantive change to Section 120 concerning the exemption of public housing redevelopment projects from the filed sub-bid requirements. The change is highlighted in the table.

Summary of Housing Related Sections in Economic Development Bill (H.4977)

H.4977, An Act investing in future opportunities for resiliency, workforce, and revitalized downtowns (FORWARD)

As reported out by the Joint Committee on Bonding, Capital Expenditures and State Assets on July 5, 2022.

Section &
Line Item		 Topic Description Amount
§ 2A – 7002-8048 MassWorks Capital authorization for infrastructure development program $400,000,000
§ 2A – 7002-8051 Redevelopment of Blighted Properties Capital authorization for MassDevelopment program to improve, rehabilitate, or redevelop blighted, abandoned, vacant, or underutilized properties to eliminate blight, increase housing production, support economic development, and other activities $50,000,000
§ 2A – 7002-8052 Technical Assistance for Planning Capital authorization for technical assistance grants for municipalities and regional applicants to support planning and local initiatives related to community development, housing production, and other activities $5,000,000
§ 2A – 7002-8054 Rural Community Grants Capital authorization for rural and small towns with less than 7,000 residents to support economic development, job creation, and housing and climate resilience initiatives $10,000,000
§ 2B – 7004-0070 Community Based Housing Capital authorization for the development of integrated housing for people with disabilities with priority for individuals who are in institutions or nursing facilities or at risk of institutionalization. Summary of changes to program:

  • Funds could only be used for development of community based housing and could not be used for the redevelopment of housing
  • Directs that housing built using these funds are for individuals with mental illness or intellectual disabilities;
  • Removes requirement that any housing built using these funds be integrated housing but a preference will remain for integrated housing
  • Allows DHCD, Department of Mental Health (DMH), and CEDAC to identify resources and guidelines for CBH grants to promote private housing development to provide for independent integrated living opportunities, to write down building and operating costs and to serve households at or below 15% of area median income (AMI) for the benefit of DMH clients
  • Creates $5 million pilot program of CBH or supportive housing loans to serve mentally ill homeless individuals in the current or former care of DMH
 $32,100,000
§ 2B – 7004-0073 Housing Stabilization Fund Capital authorization for the acquisition, preservation, and rehabilitation of affordable housing, including foreclosed and distressed properties $73,100,000
§ 2B – 7004-0075 Public Housing Redevelopment Demonstration Program Capital authorization for demonstration program that allows public housing authorities to use innovative public housing finance tools to leverage new funds and partners to rehabilitate public housing and reduce ongoing capital costs $19,300,000
§ 2B – 7004-0076 Housing Innovations Fund Capital authorization to support the production of innovative and alternative forms of rental housing, including single person occupancy units, transitional and permanent housing for the unhoused, shelters for survivors of domestic violence, supportive housing, and housing for substance abuse recovery $29,500,000
§ 2B – 7004-0079 Housing at Transit Nodes Capital authorization for program that supports the creation of smart growth, affordable housing near public transportation $11,700,000
§ 2B – 7004-0081 Public Housing Capital authorization to help rehabilitate our state public housing stock. It allows local housing authorities to plan for capital improvements, renovations, abatement of hazardous materials, or to remodel homes for persons with disabilities. $95,200,000
§ 2B – 7004-0084 Climate Resilient Housing Capital authorization for program to support production and preservation of sustainable and climate resilient affordable multifamily housing $1,000,000
§ 2B – 7004-8026 40R Smart Growth Trust Fund Capital authorization for the Chapter 40R smart growth trust fund $6,900,000
§§ 12–26 Brownfields Redevelopment Fund Program Changes
  • Removes definition of “economically distressed areas” to allow grants to be made to projects not tied to the Massachusetts Oil and Hazardous Material Release Prevention and Response Act
  • Adjusts definition of “priority projects” to allow eligibility for projects that will receive substantial funds from the municipality even if those financial funds have not yet been received by the project
  • Increases maximum award from $500,000 to $750,000 for projects to conduct environmental cleanup
  • Increases maximum award from $100,000 to $250,000 for projects to conduct environmental site assessments
  • Allows the grant applicant’s required 20% contribution to the project to be not only cash support but also in-kind services or other non-cash contribution
  • Expands list of entities eligible for grants to add non-profit entities in connection with a project that has demonstrable public benefit
  • Adds a preference for awards to be made to projects within 1 mile of an environmental justice population
§§ 33–81 40R Changes Removes starter home zoning districts from Chapter 40R
§ 83 Starter Home Zoning Districts – Ch. 40Y Creates Chapter 40Y for Starter Home Zoning Districts (“Districts”). Summary of changes to districts, as compared with 40R:

  • Districts no longer need to be in eligible locations as defined by 40R. Districts can be anywhere in a municipality and do not need to be tied to a smart growth location
  • Districts no longer needs to be at least 3 contiguous acres
  • Districts will still be eligible for zoning incentive payments and $3,000 production bonus payments for each home built from the 40R Smart Growth Trust Fund
  • DHCD may revoke approval of district and any incentive payment if no building permit is issued for any starter homes in the district within 5 years. This is an increase from the 3 year time period 40R currently allows
  • Districts will not be eligible for 40S payments for any increased school costs
  • Districts may be enacted by a simple majority vote
  • At least 50% of starter homes in a district must contain 3+ bedrooms and districts may not impose any age or other occupancy restrictions
  • For any proposed development of 12+ starter homes, at least 10% of starter homes must be affordable for households at or below 110% AMI. 40R currently requires that at least 20% of units be affordable to those at 100% AMI, with the option for municipalities to exempt projects with 12 or fewer units from these affordability requirements
§§ 86–88, 94–96 Brownfields Tax Credit Extension Extends the Brownfields Tax Credit program through 2028
§§ 82, 89–92, 97–99 Housing Development Incentive Program (HDIP)
  • Raises HDIP project cap to $3,000,000
  • Raises the cap on HDIP from $10 million to $57 million for 1 year and then sets it at $30 million annually after that
§ 105 Receivership Statute Reforms the current receivership statute to allow the sale of properties put into receivership to a nonprofit entity if that nonprofit agrees to rehabilitate the property for affordable sale to a first time home buyer whose income is not more than 120% AMI
§ 106 Public Housing Reforms – Capital Funds Adds definition of “capital funds” to the public housing statute, ch. 121B
§ 107 Public Housing Reforms – Replacement Unit Adds definition of “replacement unit” to ch. 121B to describe the former public housing units that will be the affordable housing units at the rehabilitated development.
§ 108 Public Housing Reforms – Borrowing Against Capital Funds Allows LHAs to borrow against their capital funds in order to leverage more resources for rehabilitation projects
§ 109 Public Housing Reforms – Technical Amendment Technical amendment to ch. 121B that clarifies that an LHA’s power to undertake the disposition of property includes a disposition by a means other than sale (e.g., long-term lease).
§ 110 Public Housing Reforms Revises the findings that DHCD must make to approve a sale or disposition of a public housing project to create greater opportunity for redevelopment of existing public housing, while adding a requirement for one-for-one replacement
§ 111 Public Housing Reforms Requires, as a condition of sale or disposition of an existing housing project, that the redevelopment partner enter into a binding land use restriction, requiring compliance with public housing restrictions with respect to replacement units in perpetuity, except in limited circumstances for projects utilizing federal low income housing tax credits.
§ 112 Public Housing Reforms – Technical Amendment Technical amendment to ch.121B
§ 113 Public Housing Reforms – Technical Amendment Technical change to ch. 121B to address powers of a housing authority when it is not financially feasible to maintain units to a reasonable program standard for occupancy even if the units have not yet fallen below that standard.
§ 114 Public Housing Reforms – Technical Amendment Technical correction to make clear that section 26(p) applies to certain types of dispositions as well as demolition.
§ 115 Public Housing Reforms – Vacancy Requirement Changes the requirement that a unit must be determined to be vacant as of November 1, 2012, in order for a housing authority to seek DHCD approval to dispose of or demolish the unit to a requirement that the unit be vacant for a two year period before disposition or demolition.
§ 116 Public Housing Reforms – Procuring Redevelopment Partners Adds provisions permitting LHAs to procure developer partners for redevelopment projects through a competitive, qualifications-based procurement process that will allow the disposition of property to the selected developer without having to go through a separate land disposition process.
§ 117 Public Housing Reforms Exempts LHAs that do not own, lease, or manage any state-aided public housing units from DHCD oversight.
§ 118 Public Housing Reforms – Retaining Proceeds Allows LHAs to retain the proceeds of the sale of any housing authority land for the purpose of rehabilitating other LHA property
§ 119 Public Housing Reforms – Conforming Change Conforming change to allow disposition of LHA property
§ 120 Public Housing Reforms – Filed Sub-bid Exemption Exempts public housing redevelopment projects from ch. 149 filed sub-bid requirements but does not relieve such redevelopment from prevailing wage requirements

The Bonding Committee added a sentence requiring DHCD to request rates and updates from the Division of Labor Standards for these projects.

CHAPA State Legislative Priorities 2021–2022 – Updated June 2022

by | Jun 21, 2022 | Housing News

Everyone in Massachusetts deserves the opportunity to live in a safe, healthy, and affordable home in the community they choose. By focusing on the production and preservation of affordable homes, equitable planning in all of our cities and towns, and prosperity of our neighbors and communities,
we can begin to undo discriminatory policies and barriers that have perpetuated segregation and hindered generational wealth-building for decades. With these legislative priorities, we can help our state recover from the impacts of COVID-19 while moving forward on long-term solutions to the affordable housing challenges we faced before the pandemic.

Updated June 2022 – pdf version.

PRODUCTION & PRESERVATION

An Act relative to housing production (H.1448/S.871)

Sponsors: Representatives Andy Vargas and Kevin Honan & Senator Brendan Crighton

This legislation will increase the production of affordable homes, remove restrictive zoning barriers, and proposes innovative solutions for land use in Massachusetts by:

  • Setting a statewide affordable housing production goal
  • Requiring multi-family zoning around public transportation or other suitable locations in all municipalities
  • Allowing inclusionary zoning bylaws to be enacted with a simple majority vote
  • Allowing accessory dwelling units (ADUs) to be built by-right in every municipality
  • Examining how underutilized commercial properties can be used for housing
  • Prioritizing state-owned land for affordable housing

An Act restoring the Commonwealth’s public housing (H.1417)

Sponsors: Representative Kevin Honan

Decades of underfunding has left Massachusetts at risk of losing our public housing. This legislation will help restore the state’s public housing by allowing housing authorities to leverage new and additional resources for rehabilitation and redevelopment projects. This will help ensure that public housing will remain available for some of our most vulnerable residents.

An Act codifying the Massachusetts Rental Voucher Program (H.1428) An Act relative to the Massachusetts Rental Voucher Program (S.898) Sponsors: Representative Adrian Madaro & Senator Joan Lovely

This legislation would strengthen the Massachusetts Rental Voucher Program (MRVP) that currently serves almost 9,000 households. These bills would codify MRVP into state statute and make program improvements including reducing the tenant payment share, increasing administrative fees, requiring inspections, and improving data collection.

An Act providing for climate change adaptation infrastructure and affordable housing investments in the Commonwealth (H.2890/S.1853)

Sponsors: Representative Nika Elugardo & Senator Jamie Eldridge

Massachusetts is facing both an affordable housing crisis and a climate change crisis, unfortunately made worse by COVID-19. This legislation would double the deeds excise tax on the sale of real property and dedicate the estimated $300 million in annual revenue towards affordable housing and climate sustainability. The deeds excise tax is not only directly linked to rising real estate prices but it’s also an affordable and equitable way to generate revenue for the state of Massachusetts.

An Act empowering cities and towns to support affordable housing with a fee on certain real estate transactions (H.1377/S.868)

Sponsors: Representative Michael Connolly & Senator Joanne Comerford

This legislation would allow cities and towns the opportunity to enact a local transfer fee on real estate transactions in order to support affordable housing.

An Act reducing CPA recording fees for affordable housing (H.2899)

Sponsors: Representative Ann-Margaret Ferrante

This bill would reduce Community Preservation Act (CPA) recording fees for affordable housing in those cities and towns that have enacted the CPA.

PLANNING & PROSPERITY

An Act promoting fair housing by preventing discrimination against affordable housing (H.1373/S.867)

Sponsors: Representative Christine Barber & Senator Sonia Chang-Díaz

Massachusetts has high levels of residential segregation. Restrictive local zoning and permitting decisions have helped create and perpetuate these patterns based on race, socioeconomic status, and familial status. These bills would prohibit municipal and state discriminatory zoning bylaws, ordinances, and land use decisions.

An Act promoting housing opportunity & mobility through eviction sealing (HOMES) (H.4505)

Sponsors: Representative Michael Moran & Senator Joseph Boncore

As soon as an eviction case is filed, a tenant has an eviction record that can impact people’s ability to obtain housing, credit, and employment. These eviction records are publicly available forever, regardless of the outcome. This legislation will protect tenants from being unfairly branded with an eviction record if they don’t have a judgment against them, if they weren’t actually evicted, or if they didn’t do anything wrong. H.4505 would require the court to seal an eviction record:

  • For tenants facing no-fault eviction after the conclusion of the case.
  • For tenants facing a non-payment eviction within 14 days of satisfying a judgment.
  • For tenants facing fault eviction after 3 years without another eviction case.

H. 4505 also makes it illegal for a tenant screening company or landlord to use or
report a sealed court record for purposes of screening a tenant.

Economic Development Bill Advances in Legislature

by | Jun 14, 2022 | Housing News

On June 13, the Joint Committee on Economic Development advanced an Economic Development Bill (H.4864), originally filed by Governor Baker. The committee stripped $2.3 billion in federal American Rescue Plan Act funds from the bill. However, the bill still contains nearly $270 million in capital authorizations for affordable housing programs, a tripling of the Housing Development Incentive Program (HDIP), and reforms to increase housing authorities’ ability to rehabilitate and improve public housing. The bill is now before the Joint Committee on Bonding.

The Economic Development Committee expanded the increase to HDIP, increasing the program’s allocation from $10 million to $57 million for one year and then to $30 million for each year after that. The Committee also added a section that would reform the current receivership statute to allow the sale of properties put into receivership to a nonprofit entity if that nonprofit agrees to rehabilitate the property for affordable sale to a first time home buyer whose income is not more than 120% of the Area Median Income (AMI).

Summary of Housing Related Sections in 2022 Economic Development Bill
As reported out by the Joint Committee on Economic Development and Emergency Technologies on June 13, 2022

H.4864, An Act investing in future opportunities for resiliency, workforce, and revitalized downtowns (FORWARD)

Section &
Line Item		 Topic Description Amount
§ 2A – 7002-8048 MassWorks Capital authorization for infrastructure development program $400,000,000
§ 2A – 7002-8051 Redevelopment of Blighted Properties Capital authorization for MassDevelopment program to improve, rehabilitate, or redevelop blighted, abandoned, vacant, or underutilized properties to eliminate blight, increase housing production, support economic development, and other activities $50,000,000
§ 2A – 7002-8052 Technical Assistance for Planning Capital authorization for technical assistance grants for municipalities and regional applicants to support planning and local initiatives related to community development, housing production, and other activities $5,000,000
§ 2A – 7002-8054 Rural Community Grants Capital authorization for rural and small towns with less than 7,000 residents to support economic development, job creation, and housing and climate resilience initiatives $10,000,000
§ 2B – 7004-0070 Community Based Housing Capital authorization for the development of integrated housing for people with disabilities with priority for individuals who are in institutions or nursing facilities or at risk of institutionalization. Summary of changes to program:

  • Funds could only be used for development of community based housing and could not be used for the redevelopment of housing
  • Directs that housing built using these funds are for individuals with mental illness or intellectual disabilities;
  • Removes requirement that any housing built using these funds be integrated housing but a preference will remain for integrated housing
  • Allows DHCD, Department of Mental Health (DMH), and CEDAC to identify resources and guidelines for CBH grants to promote private housing development to provide for independent integrated living opportunities, to write down building and operating costs and to serve households at or below 15% of area median income (AMI) for the benefit of DMH clients
  • Creates $5 million pilot program of CBH or supportive housing loans to serve mentally ill homeless individuals in the current or former care of DMH
 $32,100,000
§ 2B – 7004-0073 Housing Stabilization Fund Capital authorization for the acquisition, preservation, and rehabilitation of affordable housing, including foreclosed and distressed properties $73,100,000
§ 2B – 7004-0075 Public Housing Redevelopment Demonstration Program Capital authorization for demonstration program that allows public housing authorities to use innovative public housing finance tools to leverage new funds and partners to rehabilitate public housing and reduce ongoing capital costs $19,300,000
§ 2B – 7004-0076 Housing Innovations Fund Capital authorization to support the production of innovative and alternative forms of rental housing, including single person occupancy units, transitional and permanent housing for the unhoused, shelters for survivors of domestic violence, supportive housing, and housing for substance abuse recovery $29,500,000
§ 2B – 7004-0079 Housing at Transit Nodes Capital authorization for program that supports the creation of smart growth, affordable housing near public transportation $11,700,000
§ 2B – 7004-0081 Public Housing Capital authorization to help rehabilitate our state public housing stock. It allows local housing authorities to plan for capital improvements, renovations, abatement of hazardous materials, or to remodel homes for persons with disabilities. $95,200,000
§ 2B – 7004-0084 Climate Resilient Housing Capital authorization for program to support production and preservation of sustainable and climate resilient affordable multifamily housing $1,000,000
§ 2B – 7004-8026 40R Smart Growth Trust Fund Capital authorization for the Chapter 40R smart growth trust fund $6,900,000
§§ 12–26 Brownfields Redevelopment Fund Program Changes
  • Removes definition of “economically distressed areas” to allow grants to be made to projects not tied to the Massachusetts Oil and Hazardous Material Release Prevention and Response Act
  • Adjusts definition of “priority projects” to allow eligibility for projects that will receive substantial funds from the municipality even if those financial funds have not yet been received by the project
  • Increases maximum award from $500,000 to $750,000 for projects to conduct environmental cleanup
  • Increases maximum award from $100,000 to $250,000 for projects to conduct environmental site assessments
  • Allows the grant applicant’s required 20% contribution to the project to be not only cash support but also in-kind services or other non-cash contribution
  • Expands list of entities eligible for grants to add non-profit entities in connection with a project that has demonstrable public benefit
  • Adds a preference for awards to be made to projects within 1 mile of an environmental justice population
§§ 33–81 40R Changes Removes starter home zoning districts from Chapter 40R
§ 83 Starter Home Zoning Districts – Ch. 40Y Creates Chapter 40Y for Starter Home Zoning Districts (“Districts”). Summary of changes to districts, as compared with 40R:

  • Districts no longer need to be in eligible locations as defined by 40R. Districts can be anywhere in a municipality and do not need to be tied to a smart growth location
  • Districts no longer needs to be at least 3 contiguous acres
  • Districts will still be eligible for zoning incentive payments and $3,000 production bonus payments for each home built from the 40R Smart Growth Trust Fund
  • DHCD may revoke approval of district and any incentive payment if no building permit is issued for any starter homes in the district within 5 years. This is an increase from the 3 year time period 40R currently allows
  • Districts will not be eligible for 40S payments for any increased school costs
  • Districts may be enacted by a simple majority vote
  • At least 50% of starter homes in a district must contain 3+ bedrooms and districts may not impose any age or other occupancy restrictions
  • For any proposed development of 12+ starter homes, at least 10% of starter homes must be affordable for households at or below 110% AMI. 40R currently requires that at least 20% of units be affordable to those at 80% AMI, with the option for municipalities to exempt projects with 12 or fewer units from these affordability requirements
§§ 86–88, 94–96 Brownfields Tax Credit Extension Extends the Brownfields Tax Credit program through 2028
§§ 82, 89–92, 97–99 Housing Development Incentive Program (HDIP)
  • Raises HDIP project cap to $3,000,000
  • Raises the cap on HDIP from $10 million to $57 million for 1 year and then sets it at $30 million annually after that
§ 105 Receivership Statute Reforms the current receivership statute to allow the sale of properties put into receivership to a nonprofit entity if that nonprofit agrees to rehabilitate the property for affordable sale to a first time home buyer whose income is not more than 120% AMI
§ 106 Public Housing Reforms – Capital Funds Adds definition of “capital funds” to the public housing statute, ch. 121B
§ 107 Public Housing Reforms – Replacement Unit Adds definition of “replacement unit” to ch. 121B to describe the former public housing units that will be the affordable housing units at the rehabilitated development.
§ 108 Public Housing Reforms – Borrowing Against Capital Funds Allows LHAs to borrow against their capital funds in order to leverage more resources for rehabilitation projects
§ 109 Public Housing Reforms – Technical Amendment Technical amendment to ch. 121B that clarifies that an LHA’s power to undertake the disposition of property includes a disposition by a means other than sale (e.g., long-term lease).
§ 110 Public Housing Reforms Revises the findings that DHCD must make to approve a sale or disposition of a public housing project to create greater opportunity for redevelopment of existing public housing, while adding a requirement for one-for-one replacement
§ 111 Public Housing Reforms Requires, as a condition of sale or disposition of an existing housing project, that the redevelopment partner enter into a binding land use restriction, requiring compliance with public housing restrictions with respect to replacement units in perpetuity, except in limited circumstances for projects utilizing federal low income housing tax credits.
§ 112 Public Housing Reforms – Technical Amendment Technical amendment to ch.121B
§ 113 Public Housing Reforms – Technical Amendment Technical change to ch. 121B to address powers of a housing authority when it is not financially feasible to maintain units to a reasonable program standard for occupancy even if the units have not yet fallen below that standard.
§ 114 Public Housing Reforms – Technical Amendment Technical correction to make clear that section 26(p) applies to certain types of dispositions as well as demolition.
§ 115 Public Housing Reforms – Vacancy Requirement Changes the requirement that a unit must be determined to be vacant as of November 1, 2012, in order for a housing authority to seek DHCD approval to dispose of or demolish the unit to a requirement that the unit be vacant for a two year period before disposition or demolition.
§ 116 Public Housing Reforms – Procuring Redevelopment Partners Adds provisions permitting LHAs to procure developer partners for redevelopment projects through a competitive, qualifications-based procurement process that will allow the disposition of property to the selected developer without having to go through a separate land disposition process.
§ 117 Public Housing Reforms Exempts LHAs that do not own, lease, or manage any state-aided public housing units from DHCD oversight.
§ 118 Public Housing Reforms – Retaining Proceeds Allows LHAs to retain the proceeds of the sale of any housing authority land for the purpose of rehabilitating other LHA property
§ 119 Public Housing Reforms – Conforming Change Conforming change to allow disposition of LHA property
§ 120 Public Housing Reforms – Filed Sub-bid Exemption Exempts public housing redevelopment projects from ch. 149 filed sub-bid requirements but does not relieve such redevelopment from prevailing wage requirements

CHAPA Recommendations to Conference Committee on FY2023 State Budget

by | Jun 13, 2022 | Housing News

The FY2023 state budget is now before a conference committee to reconcile the differences between the House and Senate budget proposals.

The members of conference committee are:

  • Rep. Aaron Michlewitz, Chair
  • Rep. Ann-Margaret Ferrante
  • Rep. Todd Smola
  • Sen. Michael Rodridgues, Chair
  • Sen. Cindy Friedman
  • Sen. Patrick O’Connor

Once the Legislature agrees to a final budget, it will be sent to the Governor for his signature or vetoes. Below are CHAPA’s recommendations for the conference committee on making the strongest possible budget for affordable housing, community development, and homelessness prevention.

On behalf of Citizens’ Housing and Planning Association (CHAPA), thanks to both the House and Senate for expanding investments in permanent affordable housing solutions, including our state’s rental assistance programs and public housing, as well as housing assistance in the FY2023 budget.

As we continue to recover from the pandemic, these investments will help thousands of households in Massachusetts find or stay in their homes, avoid evictions and homelessness, and help prevent the spread of the virus.

Although the health crisis from the COVID-19 pandemic may be coming under control, our housing challenges remain. During the ongoing pandemic, the Legislature prioritized housing stability, which helped protect public health, and supported economic recovery. We now have a chance to act on equitable housing policies that can ensure long-term stability and prosperity for Massachusetts residents.

CHAPA is a non-profit organization that advocates for the resources and policies needed to support renters, homeowners, and landlords and to preserve and expand the state’s affordable housing stock to make sure everyone in the Commonwealth has a safe, healthy, and affordable place to call home.

Below are funding and language recommendations supported by CHAPA that will help bridge the key differences between the House and Senate budgets and provide the strongest support for these critical resources to help many residents stay housed and recover during this pandemic.

Massachusetts Rental Voucher Program (MRVP) (7004-9024)

  • Adopt $154 million appropriation in Senate budget
  • Adopt Senate language to establish a payment standard, cap tenant rent share at 30% of household income and include utilities in tenant rent payment

Thank you to the House and Senate for increasing allocations for MRVP in FY2023 and allowing leftover funds to carry over in the next fiscal year. This funding increase can help support many new rental vouchers to help thousands of people find a stable home that they can afford during the pandemic. Increasing investments in long-term affordable housing solutions like our MRVP and public housing will help protect individuals, families, and our communities through the pandemic recovery.

CHAPA asks that you adopt the higher appropriation in Senate budget of $154 million to enable new vouchers to be issued to households who are currently rent burdened.

In order to ensure that MRVP allocation is utilized fully, effectively and timely, CHAPA asks that you adopt the Senate language on:

  • Establishing a payment standard payment standard between 100% and 110% of the fair market rent starting on January 1, 2023
  • Lowering the tenant rent share to 30% of a household’s income in the first year of occupancy once the payment standard is implemented while allowing beyond 40% of the household’s income to be paid for rent at the tenant’s option after the first year
  • Including utilities in the tenant rent share

Currently, most MRVP voucher holders pay 40% of their income towards rent. Households paying more than 30% of their income towards rent are ‘housing cost burdened, which leaves less income to pay other necessities like food, healthcare, and childcare. Families that are cost burdened have increased over time in Massachusetts[1]. Lowering the tenant rent share to 30% of income and including utilities will reduce the housing cost burden on many households with vouchers.

Implementing a payment standard, lowering the tenant rent share to 30%, and including utilities will better align the state MRVP program with federal Section 8 Housing Choice Voucher program making MRVP vouchers more competitive and effective to use in a tight housing market.

Residential Assistance for Families in Transition (RAFT) (7004-9316)

  • Adopt $150 million total appropriation from Senate budget
  • Adopt Senate language restoring the RAFT benefit cap to $10,000/household for FY23, allowing receipt of MassHealth or DTA assistance as eligibility for RAFT for households to demonstrate below 50% AMI income
  • Adopt House language to expand categories of households eligible for RAFT with incomes above 50% area median income (AMI) but below 60% AMI
  • Consider adding language that would not require additional documentation, like notice to quit, utility shut off notice, summary process summons for accessing RAFT

Thanks to both the House and Senate for demonstrating support for RAFT and de-linking RAFT and HomeBASE allowing households to access the maximum of both programs and allowing carryover of leftover funds from previous fiscal year. CHAPA asks that you adopt the $150 million total appropriation for RAFT provided in the Senate budget. The additional funds will help provide rental assistance given that the federal funds for emergency rental assistance have ended. These funds will also help support homeowners facing foreclosure with emergency mortgage assistance.

We request that you to adopt the Senate language to allow the maximum benefit of $10,000 for FY2023. Unfortunately, with the federal funds for emergency rental assistance program (ERAP) ending, many households may be forced into evictions. Without a higher benefit amount, households that owe more than $7,000 in rent are at the risk of being evicted.

We also request you to adopt the House language to expand categories of households eligible for RAFT with incomes above 50% area median income (AMI) but below 60% AMI. Extending the maximum RAFT benefits will help households catch up on missed rent or mortgage payments.

We request you consider adding language that ensure that households are able to access RAFT without requiring to notice quit, utility shut off notice and summary process summons. By the time a households receives these notices, they are closer to the eviction process. Receiving rental assistance prior to receiving these notices is critical to maintain tenancy and housing stability. Following language can be added to the line item to ensure access to RAFT:

“provided further, that to be eligible for funds or services in 7004-9316, it is not necessary for a household to have received a shut-off notice from a utility company, notice to quit, or summary process summons and complaint or otherwise be subject to summary process pursuant to chapter 239″

MassAccess registry (4120-4001)

  • Adopt$150,000 appropriation in Senate budget

Thanks to the House and Senate for supporting this line item. The MassAccess website helps people to find affordable rental and homeownership opportunities in Massachusetts. The MassAccess Housing Registry line item has been level-funded for 12 years and this is the first time we are requesting an increase to modernize housing search and ensure that people can find the affordable housing that has been developed throughout the Commonwealth.

The $70,000 increase will help support the replacement of MassAccess with two technologically modern websites for rentals (Housing Navigator – which already up and running) and homeownership opportunities (MyMassHome – which needs additional funding to go live). The modest increase in funding will ensure that people can find the affordable housing that has been developed throughout the Commonwealth. In order for people to have opportunities to live in the communities they choose, it is critical that they know where affordable homes are located!

Housing Consumer Education Centers (7004-3036)

  • Adopt$9.7 million appropriation in House budget
  • Adopt language change in House budget that adds $1.5 million for housing stabilization services under the eviction diversion initiative who face significant barriers to sustaining housing payments

Thank you to both House and Senate for supporting this program. The HCECs line item supports regional housing organizations that offer anyone in the Commonwealth a wide range of resources, including housing search assistance, eviction prevention, and homebuyer and foreclosure counseling. HCECs are also essential to delivering other housing resources, such as RAFT and HomeBASE. The additional allocation will help provide housing stabilization services as households are still facing financial hardships and housing insecurity.

HomeBASE (7004-0108)

  • Adopt $59.4 million appropriation in House budget
  • Adopt Senate language that eliminates the income eligibility limit for families enrolled in HomeBASE
  • Adopt language change in Senate budget that allows eligible households to maximize both HomeBASE and RAFT benefits

Thanks to both the House and Senate for supporting HomeBASE. CHAPA respectfully asks that you adopt the House appropriation of $59.4 million and the Senate version of this language that eliminates the income eligibility limit for families enrolled in HomeBASE. This would help participating families to have the opportunity to increase their income without fear of being terminated from HomeBASE.

Home & Healthy for Good (7004-0104)

  • Adopt $6.39 million appropriation in House budget

Home and Healthy for Good (HHG) provides housing and supportive services to chronically homeless individuals through a housing first model that is less costly and more effective than managing residents’ homelessness and health problems on the street or in shelter. HHG also supports a pilot program to provide shelter and support services for LGBTQ unaccompanied homeless youths.

Accessible Affordable Housing Grants (AAHG) (7004-9031)

  • Adopt $2.5 million appropriation in Senate budget

Thank you to Senate for supporting the capital grants for production of affordable accessible housing. The housing built through these grants prioritizes AHVP voucher holders while increasing the stock of accessible housing.

Foreclosure & Housing Counseling (7006-0011)

  • Adopt the $3.05 million appropriation in the Senate budget
  • Adopt the Senate language providing higher guaranteed amounts for the housing/foreclosure counseling grants

CHAPA requests that you adopt the $3.05 million appropriation in the Senate budget. This line item, funded through retained revenue from mortgage loan originator license fees, supports foreclosure prevention and housing counseling across the Commonwealth. By allowing the Division of Banks to retain more revenue, it can support additional effective foreclosure prevention tools, such as direct advocacy and counseling. Additional funds for the program will help prevent more foreclosures and help maintain housing stability.

Finally, CHAPA thanks the House and Senate for both agreeing to critical funding for our other affordable housing and homelessness prevention priorities, including Alternative Housing Voucher Program, Public Housing, Tenancy Preservation Program, Unaccompanied Homeless Youth, New Lease for Homeless Families, and the Department of Mental Health Rental Subsidy Program.

All these programs will help thousands of residents find an affordable home, remain stably housed, or prevent homelessness.

[1] Greater Boston Housing Report Card. The Boston Foundation. 2021 Series. https://www.tbf.org/news-and-insights/reports/2021/jun/greater-boston-housing-report-card-2021

Memo on the Benefits of Rental Assistance as a Right in Massachusetts

by | Jun 3, 2022 | Housing News

On June 3, CHAPA, The Boston Foundation, Metro Housing|Boston, and the Regional Housing Network of Massachusetts released a brief memo, The Benefits of Rental Assistance as a Right, with information about the Massachusetts Rental Voucher Program and how we can chart a path for getting every eligible household the rental assistance they need. In addition to the memo, our organizations are working with The Center for State Policy Analysis to conduct further research to provide cost estimates along with strategies for effective implementation of getting rental assistance to all who qualify.

Below is the letter sent to each legislator in Massachusetts.

Dear Legislator,

On behalf of CHAPA, The Boston Foundation, Metro Housing|Boston, and the Regional Housing Network of Massachusetts, we are writing to share a brief memo with information about the Massachusetts Rental Voucher Program (MRVP) and how we can chart a path for getting every eligible household the rental assistance they need.

Housing is vital to our quality of life, our economy, and the stability of our neighborhoods. As our home prices and rents continue to escalate far faster than our incomes, there are many strategies that must be deployed to ensure every household can afford a home in the community they choose.

It is well documented that Massachusetts needs 200,000 new homes by 2030 to stabilize home prices and rents. Putting policies in place, such as requiring 175 communities served by the MBTA to zone for multifamily housing, will make a big impact, particularly for people with middle incomes. However, stabilizing home prices and rents that are already out of reach for so many people requires us to invest more deeply in the programs that assist people whose affordability challenges will not be solved by the market alone.

In October 2021, the Senate Committee on Reimagining Massachusetts endorsed a unique and promising new approach to achieve this: make rental vouchers available to all eligible residents.

Together, we can work to achieve this goal! In addition to the attached memo, our organizations are working with The Center for State Policy Analysis to conduct further research. In the months ahead, we expect to have cost estimates for a number of different approaches, along with strategies for effective implementation of getting rental assistance to all who qualify.

The Legislature has two opportunities before the end of this session to make progress on getting every resident the rental assistance they need:

  • Include the strongest possible funding for MRVP in the final conference committee FY2023 budget; and
  • Pass legislation that puts MRVP into statute. Passing An Act Relative to the Massachusetts Rental Voucher Program (H.1428/S.898) will lay the groundwork for growing this program into one that ensures every person who needs help paying rent receives it.

To ensure that every person in the Commonwealth has the foundation they need to thrive, we need to continue to invest in affordable housing production and preservation through Housing Bond Bills, federal ARPA funds, support our Public Housing, and make rental assistance available to every household who is eligible and cannot afford rent.

Thank you for your leadership and commitment to ensuring everyone in the Commonwealth has a safe, healthy, and affordable home in a community that they choose.

Please let us know if you have any questions or if we can provide any other information.

Sincerely,

Rachel Heller
Chief Executive Officer
Citizens’ Housing and Planning Association

Keith Mahoney
Vice President of Communications & Public Affairs
The Boston Foundation

Chris Norris
Executive Director
Metro Housing|Boston

Stefanie Coxe
Executive Director
Regional Housing Network of Massachusetts

Senate Concludes Debate on FY2023 budget

by | May 31, 2022 | Housing News

The Senate concluded FY2023 budget debate on May 26th. CHAPA’s priority amendments on MRVP, HomeBASE and CPA were adopted, with increased funding over the House allocations for many of CHAPA’s affordable housing priorities, including the Massachusetts Rental Voucher Program and RAFT. The House and Senate will reconcile the differences through a Conference Committee soon.

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

  • Mass. Rental Voucher Program (MRVP) – The Senate funds MRVP at $154 million (compared to $150 million by the House) along with language to:
    • Move MRVP to a payment standard aligned with Section 8 up to 110% FMR
    • Caps tenant rent payment to 30% in first year of occupancy starting from January 1st, 2023
    • Sen. Keenan’s amendment which was adopted in the Senate budget debate established for utilities to be included as a part of tenant rent payment
    • Carries forward $21.9 million in unspent funds from FY22 bringing the MRVP total allocation at ~$175 million
  • Residential Assistance for Families in Transition (RAFT) – The Senate funds RAFT at $150 million (House funds at $140 million). This is critical given that the federal funding for rental assistance has almost ended. The increased allocation is in addition to the $100 million allocated for RAFT through the FY2022 Supplemental budget.
  • Alternative Housing Voucher Program (AHVP) – The Senate allocated $13.6 million along with language to carry forward $5.6 million in unspent funds from FY22 bringing the AHVP total allocation to $19.2 million, same as the House.
  • Public Housing – The Senate proposes increased funding for Public Housing Operating line item at $92 million, same as the House.
  • HomeBASE – The Senate allocates $56.9 million for HomeBASE (House allocated $59.4 million) with automatic renewal of benefits up to 2 years.

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

Below are the detailed outcomes of CHAPA’s Priority amendments:

#298 – Massachusetts Rental Voucher Program (MRVP) (7004-9024) – Redraft Adopted
Sponsored by Sen. Keenan
Sen. Keenan’s amendment makes improvements to MRVP by making it easier to use and aligning it further with the Section 8 Housing Choice Voucher Program. The following improvements will help make MRVP more effective and ensure maximum utilization of the allocated funds:
•    Allows voucher payment standards to exceed 110% of the Fair Market Rent (FMR) in certain circumstances as a reasonable accommodation or to help find housing in strong markets (not adopted)
•    Allows the voucher to cover utility payments (adopted)

#253 – Residential Assistance for Families in Transition (RAFT) (7004-9316) – Not Adopted
Sponsored by Sen. Keenan
Sen. Keenan’s amendment expands access to RAFT while improving benefits for households. The amendment proposes to:
•    Increase income eligibility for RAFT to households up to 60% of the Area Median Income (AMI) from the current 50% AMI threshold
•    Reduce documentation requirements for receiving utility-related benefits and
•    Allow 4 months of forward rent payments & stipends for eligible households.

 

#297 – Residential Assistance for Families in Transition (RAFT) (7004-9316) – Not Adopted
Sponsored by Sen. Keenan
Sen. Keenan’s amendment establishes a pilot program same as the federal Emergency Rental Assistance Program (ERAP) under RAFT. Specifically, the amendment:
•    Increases RAFT allocation to $160 million from $150 million
•    Establishes a rental assistance pilot program similar to ERAP
•    The pilot program allows eligibility for up to 80% AMI; 12 months of rent and forward payments with direct payments to tenants in certain cases.

#206 – HomeBASE (7004-0108) – Redraft Adopted
Sponsored by Sen. Jehlen
Sen. Jehlen’s amendment makes the following program improvements to HomeBASE ensuring housing stability for households:
•    Increases HomeBASE benefit to $15,000 for every 12 month period (not adopted)
•    Allows benefit of $30,000 for up to 24 months (not adopted)
•    Removes income increases as terms for ineligibility (adopted)

#263 – Home and Healthy For Good (7004-0104) – Not Adopted
Sponsored by Sen. Feeney
Sen. Feeney’s amendment increases funding for the program to $6.39 million for housing and supportive services for chronically homeless individuals through a housing-first model that is less costly and more effective than managing residents’ homelessness and health problems on the street or in a shelter.

#834 – Community Preservation Trust Fund (Outside Section) – Adopted
Sponsored by Sen. Comerford
Sen. Comerford’s amendment allocates $20 million from any state surplus revenue to the Community Preservation Trust Fund.