Baker-Polito Administration Files $1.287 Billion Affordable Housing Bill To Increase Development, Extend Key Tax Credits - April 24, 2017

Post date
April 24, 2017

 

The Baker-Polito Administration filed a Housing Bond Bill (H.3653) seeking $1.287 billion in additional capital authorization, to allow the Commonwealth to continue state support for the construction and preservation of affordable housing, and provide funds for public housing maintenance and improvement. Combined with nearly $258 million in current, uncommitted capital authorization from the $1.4 billion Housing Bond Bill passed in 2013, the Administration’s bill would create more than $1.5 billion in capacity to support affordable housing. 

In addition to seeking new capital authorization for affordable housing, the Administration’s bill also extends the state Low Income Housing Tax Credit (LIHTC) that finances affordable housing development, extends the Housing Development Incentive Program (HDIP), a state tax credit that encourages new housing development in Gateway Cities, and offers several reforms to facilitate the redevelopment of state-aided public housing.

“This housing proposal advances our efforts to provide more affordable options and access to economic opportunity for families and individuals in communities across the Commonwealth,” said Governor Charlie Baker. “This legislation gives our administration the tools to meet the pressing need for affordable housing, and to continue caring for the state’s most vulnerable residents, including homeless families, individuals living with disabilities, and elders. I look forward to working with our partners in the Legislature as we collaborate to advance this critical piece of legislation.” For the Governor's press release on the bill, click here.

New capital authorizations for affordable housing programs are spread over ten areas:

  • $600 million in new capital authorization to make capital improvements across the over 45,000 units of state-aided Public Housing

  • $240 million in new capital authorization for a total of $345 million for the Affordable Housing Trust Fund to support private affordable housing development

  • $127 million in new capital authorization for a total of $150.5 million for the Housing Stabilization and Investment Trust Fund to support preservation, new construction and rehabilitation projects

  • $100 million in new capital authorization for the Housing Innovations Trust Fund to support innovative and alternative forms of rental housing for residents who need extensive support services

  • $60 million in new capital authorization for the Facilities Consolidation Fund to provide financing for community-based housing in rental developments for clients of the Departments of Developmental Services and Mental Health

  • $50 million in new capital authorization for the Public Housing Demonstration Program to encourage housing authorities to pursue innovative, market-driven strategies and leverage private resources

  • $38 million in new capital authorization for a total of $99.5 million for the Capital Improvement and Preservation Trust Fund to help preserve affordable housing for which affordability restrictions would otherwise expire

  • $38 million in new capital authorization for Community Based Housing for people with disabilities

  • $22 million in new capital authorization for a total of $57.5 million for the Home Modification Loan Program to provide loans to make access and safety modifications to the homes of persons with disabilities 

  • $12 million in new capital authorization for a total of $45 million for supporting development that creates residential units and mixed used developments through the Commercial Area Transit Node Housing Program

The Governor's bill also allows for continued use of the Housing Development Incentive Program (HDIP) and the state Low-Income Housing Tax Credit (LIHTC) at current levels for additional five-year periods rather than cutting these programs in half in 2019 and 2020 respectively.

Finally, the legislation reforms a number of provisions governing Local Housing Authorities.  Three highlights of these reforms are:

  • Streamlining procurement laws and public bidding requirements

  • Authorizing local housing authorities to retain the proceeds from the sale or long term lease of public housing property and use those proceeds to build, maintain or preserve public housing

  • Allowing local housing authorities to borrow against their funding streams