On July 14, the Massachusetts House of Representatives passed its Economic Development Bill after two days of debate. The housing-related sections in the final House Economic Development Bill (H.5034) remained largely unchanged compared to the bill released earlier by the House Ways and Means Committee. However, the House did add language to update adaptability and accessibility standards for newly built multifamily housing.
Updated Adaptability Standards: The language would require any vacant residential building undergoing a gut rehabilitation or any non-residential (commercial) building undergoing a gut rehabilitation as part of a change in use into multifamily to have all units be adaptable, regardless of when the building was constructed.
Updated Accessibility Standards: The language would require any residential building when constructed to have 5% of units in buildings with 20+ units to be accessible.
Rules & Regulations: The language directs the Architectural Access Board to issue rules and regulations with design standards and procedures to implement the adaptability and accessibility standards through.
The bill now moves to the State Senate which will debate the legislation starting July 21.
On July 19, the Senate Ways and Means Committee released its Economic Development Bill proposal (S.3018). The Senate Ways and Means Bill contains similar housing provisions as the House bill. However, the Senate Ways and Means Bill proposed $400 million for affordable housing to be funding through American Rescue Plan Act Funds and the state budget surplus, which was not included in the House Bill. More information on that addition as well as a summary of all housing related sections in the bill are in the table below.
As the Senate prepares to debate its Economic Development Bill, CHAPA will be advocating for amendments to strengthen the bill for affordable housing, community development, and homelessness prevention.
| Line Item | Topic | Description | Amount |
|---|---|---|---|
| Funded from ARPA & Budget Surplus | |||
| 1599-6084 | Affordable Housing Reserve | Reserve to be managed by MassHousing to support the following:
|
$400,000,000 |
| Funded by Capital Spending | |||
| 7002-8048 | MassWorks | Capital authorization for infrastructure development program | $400,000,000 |
| 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 |
| 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 |
| 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 |
| 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 | $32,100,000 |
| 7004-0073 | Housing Stabilization Fund | Capital authorization for the acquisition, preservation, and rehabilitation of affordable housing, including foreclosed and distressed properties | $73,100,000 |
| 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 |
| 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 |
| 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 |
| 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 |
| 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 |
| 7004-8026 | 40R Smart Growth Trust Fund | Capital authorization for the Chapter 40R smart growth trust fund | $6,900,000 |
| Outside Sections (sections that do not involve funding appropriations) | |||
| Brownfields Redevelopment Fund Program Changes |
|
||
| 40R Changes | Removes starter home zoning districts from Chapter 40R | ||
| Starter Home Zoning Districts – Ch. 40Y | Creates Chapter 40Y for Starter Home Zoning Districts (“Districts”). Summary of changes to districts, as compared with 40R:
|
||
| Rental Deduction | Increases the rent deduction cap from $3,000 to $4,000 | ||
| Brownfields Tax Credit Extension | Extends the Brownfields Tax Credit program through 2028 | ||
| Senior Circuit Breaker Tax | Increases the maximum senior circuit breaker tax from $750 to $1,755. Those 65+ are allowed a credit equal to the amount by which the real estate tax payment exceeds 10% of the taxpayer’s total income. | ||
| Housing Development Incentive Program (HDIP) |
|
||
| Public Housing Reforms – Capital Funds | Adds definition of “capital funds” to the public housing statute, ch. 121B | ||
| 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. | ||
| Public Housing Reforms – Borrowing Against Capital Funds | Allows LHAs to borrow against their capital funds in order to leverage more resources for rehabilitation projects | ||
| 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). | ||
| 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 | ||
| 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. | ||
| 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. | ||
| Public Housing Reforms – Technical Amendment | Technical correction to make clear that section 26(p) applies to certain types of dispositions as well as demolition. | ||
| 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. | ||
| 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. | ||
| Public Housing Reforms | Exempts LHAs that do not own, lease, or manage any state-aided public housing units from DHCD oversight. | ||
| 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 | ||
| 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 | ||