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.