Governor Baker Signs ARPA Spending Bill with $600 Million for Affordable Housing

Post date
December 13, 2021

On December 13, 2021, Governor Baker signed the spending bill into law for more than half of the state’s American Rescue Plan Act (ARPA) Fiscal Recovery Funds. The law provides over $600 million in affordable housing investments, including funds to create new rental and homeownership opportunities, build supportive housing, and restore public housing. The Governor vetoed language that included reporting requirements but left spending amounts intact.

Homeownership Assistance (1599-2020)

$65,000,000

  • allocaties funding to address the homeownership gap by creating opportunities for first time home-buyers through down payment assistance programs, mortgage insurance programs and mortgage interest subsidy programs in disadvantaged communities impacted by the pandemic

  • requires administering agency to submit spending plan 30 days before obligating funds and a report to the Legislature

CommonWealth Builder – Homeownership Production (1599-2021)

$115,000,000

  • directs funds to first-time homebuyers and socially disadvantaged individuals in disproportionately impacted communities in the pandemic through MassHousing’s CommonWealth Builder program

  • language limits spending to MassHousing’s CommonWealth Builder program, removing Massachusetts Housing Partnership or other similar program from being able to administer funds (as originally proposed by the House)

  • explicitly limits income eligibility to 70-120% of Area Median Income (AMI) and create a preference for the following:

    • Projects serving 70% AMI

    • Projects that include clean energy and sustainability initiatives

    • Projects in communities that have changes zoning using Housing Choice

  • includes minimum size of 6 units for projects

  • requires funds to be distributed in a way that promotes geographic equity

  • allows grants to include a requirement for matching funds

Rental Production (1599-2022)

Conference:   $115,000,000

  • establishes funding for affordable housing production and preservation to be administered by Dept. of Housing and Community Development (DHCD), MassHousing and Community Economic Development Assistance Corporation (CEDAC) agencies through grants, loans and financial assistance for affordable housing projects receiving LIHTC, state tax exempt bond funds or other state funds

  • allows $2M from this line item to be spent on Housing Development Incentive Program

  • establishes priorities for projects with clean energy and sustainability initiatives and directs funds to be spent in a way that promotes geographic equity

  • requires a spending plan to be submitted 30 days before distributing funds

Supportive Housing (1599-2023)

$150,000,000

  • establishes funding for production of permanent supportive housing for the following priority populations:

    • Individuals and families who may be classified as chronically homeless

    • Survivors of domestic violence

    • Seniors

    • Veterans

    • Individuals and families with behavioral health needs or substance abuse needs

    • Survivors of human trafficking

    • Survivors of sexual violence

    • Individuals and families at risk of entering or transitioning out of the foster care system

    • Youth and young adults

  • includes language explicitly allowing funds to be used for acquisition of temporary housing, like hotels and motels, to convert into supportive housing

  • includes language to provide $15 million to the Massachusetts Alliance for Supportive Housing (MASH) to create supportive housing to address overcrowded congregate shelters and encampments of unsheltered individuals

  • directs the DHCD to consult with MASH on evidence-based and evidence-informed best practices for creating and expanding permanent supportive housing for the populations prioritized in this item

  • requires DHCD, in consultation with MASH, to submit a report on how the funds are being used to reduce chronic and long term homelessness

  • provides $50 million for DHCD, in consultation with MASH, to create supportive housing for chronically homeless individuals and families

  • language explicitly prioritizes disproportionately impacted communities

  • allows funds to be used for medical, health and wellness facilities within existing and planned supportive affordable housing communities

  • directs funds to be used to ensure geographic equity

  • directs $20 million for increasing geographic equity and accessibility related to the continuum of long-term care services for veterans not primarily served by the Soldiers’ Home in Massachusetts located in Chelsea or Holyoke

Public Housing (1599-2024)

150,000,000

  • establishes funding for rehab and modernization of state public housing for improvements that will help comply with current code

  • Prioritizes projects in disproportionately impacted communities

  • directs funds to be distributed to achieve geographic equity

  • The language allows grants to require matching funds from the municipality

  • requires spending plan to be submitted to the Office of Administration and Finance 30 days before distributing any funds

Green Energy Retrofitting (1599-2035)

$6,500,000

  • Establishes funding for a pilot program administered by the Dept. of Energy Resources for moderate to low-income housing in Gateway Municipalities, qualified census tracts and similar municipalities to be retrofitted with energy efficient/ clean/ renewable technologies

  • The eligible projects require to retrofit 10 or more units

  • Dept. of Energy Resources in consultation with the center, DHCD and Dept. of Public Utilities will set up the application criteria and incentives for property owners to maintain affordability for a certain period after the retrofitting

  • Directs the Dept. of Energy Resource to collect data, best practices and submit a report to the Legislature in 6 months on the energy savings and pollution mitigation through the pilot program