House Passes Affordable Homes Act - Record Level of Funding Proposed
Late on Wednesday, June 5th, the Massachusetts House of Representatives passed a $6.2 billion housing bond bill by a vote of 145-13. After more than 8 hours of floor debate and 371 amendments, the legislation moves one step closer to final passage and enactment.
When Governor Healey filed the Affordable Homes Act last October, that legislation proposed a historic $4.1 billion in bond authorization, more than doubling the 2018 bond bill’s authorization of $1.8 billion. In adding more than $2 million to the Governor’s amount, the House has now more than tripled the bill from five years ago.
This bill includes the funding authorizations for the state programs that support affordable housing production and preservation along with more than 25 policies to foster the creation of housing that meets the diverse needs of current and future residents. As we strive to create the 200,000 homes by 2030 that Massachusetts needs to stabilize home prices and rents, the Affordable Homes Act moves us forward in preserving our affordable housing stock and building 40,000 homes that are affordable for households with moderate incomes and 20,000 homes that are affordable for people with low and extremely low incomes.
Here is a breakdown of bond authorization amounts and tax credit programs from each bill. These programs will support affordable and public housing preservation and the production of homeownership opportunities, supportive housing, mixed income developments, public housing, and investments in infrastructure. In addition, the bill proposes funding for down payment assistance to help people become homeowners and invests in early education and out of school time facilities:
| Line Item | Program | 2018 Bond Bill | Affordable Homes Act | House Final |
| 1599-1953 | Local Designated Projects | $196,986,900 | ||
| 1599-3032 | MWRA Infrastructure | $1,000,000,000 | ||
| 3000-0411 | Early Education & Out of School Time | $45,000,000 | $50,000,000 | $50,000,000 |
| 7004-0069 | Home Modification Loan Program | $60,000,000 | $60,000,000 | $60,000,000 |
| 7004-0070 | Facilities Consolidation Fund | $65,000,000 | $70,000,000 | $70,000,000 |
| 7004-0071 | Community Based Housing | $55,000,000 | $55,000,000 | $55,000,000 |
| 7004-0072 | Affordable Housing Trust Fund | $400,000,000 | $800,000,000 | $800,000,000 |
| 7004-0073 | Housing Stabilization Fund | $150,000,000 | $425,000,000 | $425,000,000 |
| 7004-0074 | Public Housing | $600,000,000 | $1,500,000,000 | $2,000,000,000 |
| 7004-0075 | Public Housing Demonstration | $50,000,000 | $100,000,000 | $200,000,000 |
| 7004-0076 | Housing Innovations Fund | $100,000,000 | $200,000,000 | $200,000,000 |
| 7004-0077 | Housing Choice Local Community Planning Grants | $35,000,000 | $50,000,000 | |
| 7004-0078 | Green Housing Initiative | $275,000,000 | $275,000,000 | |
| 7004-0079 | Smart Growth | $20,000,000 | $20,000,000 | |
| 7004-0080 | Middle Income Housing | $100,000,000 | $100,000,000 | $100,000,000 |
| 7004-0081 | Commonwealth Builder | $100,000,000 | $100,000,000 | |
| 7004-0082 | HousingWorks Community Planning Grants | $25,000,000 | $25,000,000 | |
| 7004-0083 | Housing Choice Infrastructure | $175,000,000 | $175,000,000 | |
| 7004-0085 | Neighborhood Stabilization | $50,000,000 | $50,000,000 | |
| 7004-0092 | Commercial Property Conversion | $150,000,000 | ||
| 7004-0093 | Healthy Homes | $50,000,000 | ||
| 7004-0094 | Veterans Housing | $20,000,000 | ||
| 7004-0095 | Transitioning State-Owned Buildings | $50,000,000 | ||
| 7004-4784 | Momentum Fund | $50,000,000 | $250,000,000 |
| Program | Affordable Homes Act | House Final |
| Community Investment Tax Credit | $15,000,000 | $15,000,000 |
| Homeownership Production Tax Credit | $10,000,000 | $10,000,000 |
| Historic Rehabilitation Tax Credit | $55,000,000 | $110,000,000 |
In addition to providing the financing and tax credits critical to affordable housing production and preservation, the House included several CHAPA policy priorities, including:
- Establishing a State Office of Fair Housing
- Allowing Accessory Dwelling Units (ADUs) by right in every community
- Supportive Housing Pool Fund
- Homeownership Production Tax Credit
- Commission on Housing for Households with Extremely Low Incomes
- Commission on Accessible Housing for Persons with Disabilities
- Seasonal Communities Designation
- Social Housing Pilot Program
- State Housing Plan conducted every 5 years
- Prioritization of State Owned land for housing production
The House added two important provisions to use existing buildings for affordable housing, including doubling of the Historic Tax Credit to $110 million through 2030 and authorizing a local option for municipalities to allow tenants the first opportunity to purchase their building if it is put up for sale. The House bill prioritizes accessibility by including language to update adaptability and accessibility standards and directs the Architectural Access Board to issue rules and regulations with design standards and procedures to implement the new policies.
Importantly, the House rejected several proposed amendments that would have made changes to existing laws that have supported the creation of multifamily and affordable housing. Representatives voted overwhelmingly against amendments that would have weakened, delayed, or undermined the MBTA Communities Act and Chapter 40B.
CHAPA looks forward to working with our partners to ensure that the specific language included in the final version of the bond bill with respect to these items serves to address Massachusetts’ housing challenges and meet the range of needs of current and future residents while avoiding unintended consequences.
While there were a many great policy provisions included by the House in the bill that the branch passed, there were items that did not make the final cut. Among those pieces supported by CHAPA that we are advocating for inclusion in the Senate are:
- Local option real estate transfer fee to help fund affordable housing development.
- Allowing municipalities to pass inclusionary zoning by simple majority.
- Sealing evictions records in specific cases.
- Creating commissions on Racial Equity in Housing and on Senior Housing.
- Creating a process for foreclosure mediation.
CHAPA thanks the House for passing a strong and historic housing bond bill. In particular, thank you to Speaker Ronald Mariano, House Ways & Means Chair Aaron Michlewitz, Housing Committee Chair Jim Arciero, Representative Kevin Honan, Representative Natalie Higgins, Representative Chrstine Barber, Representative Chyna Tyler, Representative Mike Connolly, Representative David LeBoeuf, Representative Frank Moran, Representative Carlos Gonzalez, Representative Andy Vargas, and Representative Erika Uyterhoeven, Representative Christopher Worrell, and Representative Rob Consalvo for your leadership on this bill and filing amendments to further the impact of this legislation.
The Senate is expected to take up the bill in the next couple of weeks. Now is the time to weigh in with your state senator on the legislation. In addition to the specific areas that you may choose to highlight, CHAPA would ask that you urge them to:
- Support the highest bond authorization levels possible to ensure that resources are available to create the homes we need;
- Protect our existing housing laws, especially the MBTA Communities Act and Chapter 40B, from any attempts to weaken, delay, or undermine them;
- Preserve the policy proposals that have been put forward by Governor Healey and the House of Representatives that will provide tools to address Massachusetts’ housing challenges; and
- Pass the bond bill as quickly as possible to make sure that there are no gaps in funding rounds.
If you have any questions or would like additional information, please do not hesitate to contact me at mnoyes@chapa.org.