Massachusetts Senate Takes Bold Action to Address Housing Crisis – The Valley Patriot

By: Senator Pavel Payano – July 224

In a decisive move aimed at addressing Massachusetts’ ongoing housing crisis, the Massachusetts Senate unanimously passed S. 2834, also known as the Affordable Homes Act. This legislation marks a significant step forward in addressing housing affordability, availability, and equity in the state.

The Affordable Homes Act is a multifaceted initiative that combines $5.4 billion in funding with substantial policy changes. Its primary goals include building new housing units, accelerating the renovation of existing housing stock, reducing barriers to development, and promoting affordable housing initiatives. These measures are designed to alleviate pressures that have contributed to Massachusetts’ housing shortage and rising costs.

Thanks to the support of Senate President Karen Spilka, Senate Ways and Means Chairman Michael Rodrigues, and Housing Chair Lidia Edwards for sponsoring one of the amendments I successfully championed. Amendment #168 made improvements to Massachusetts’ Chapter 40R program. Originally passed in 2004, Chapter 40R encourages municipalities to adopt smart growth zoning, which encourages compact residential and mixed-use development.

The amendment, which passed with overwhelming support, makes substantial updates to the program’s financial incentives to better reflect current economic realities and inflation. Specifically, it nearly doubles the one-time stimulus payment and increases the bonus payment per new housing unit from $3,000 to $6,000.

40R has been successfully implemented in Haverhill, where smart growth initiatives revitalized the central business district and converted industrial space into housing. Initially, these efforts resulted in significant 40R incentive payments, but inflation had diminished their impact over the years. With the passage of the amendment, Massachusetts aims to give more municipalities the authority to create affordable and dense housing zones, fostering vibrant communities across the state without requiring additional state funding.

Key Provisions of the Affordable Homes Act

The Affordable Homes Act addresses several aspects of the housing crisis through targeted investments and policy changes:

1. Public Housing Rehabilitation: Allocates $2.2 billion to repair and upgrade state-subsidized public housing, ensuring safer and more sustainable living conditions for thousands of families. A portion of this funding, $150 million, is earmarked for energy efficiency upgrades to align with the state’s climate goals.

2. Affordable Housing Initiatives: Includes $425 million for the Housing Stabilization and Investment Trust Fund, to support the preservation, construction, and renovation of affordable rental housing. An additional $800 million is allocated to the Affordable Housing Trust Fund to create and maintain housing for households earning up to 110% of the area median income.

3. Sustainable Building Practices: $275 million will be provided to promote innovative and environmentally friendly housing construction methods, contributing to Massachusetts’ efforts to combat climate change.

4. First-time Home Buyer Support: Authorizes $200 million for the CommonWealth Builder Program, aimed at expanding homeownership opportunities in gateway cities. This initiative not only promotes economic growth, but also revitalizes urban areas.

5. Infrastructure Investment: Provides $375 million for HousingWorks, which supports critical infrastructure improvements needed for new housing developments. This includes addressing water, sewer and septic challenges, as well as encouraging best practices in transit-oriented development communities.

6. Equity and Fairness: Introduces policies such as tenant protections from broker fees, the creation of equity-oriented housing offices, the sealing of eviction records for certain cases, and the promotion of Accessory Dwelling Units (ADUs) in residential areas. These initiatives are aimed at improving housing stability, promoting fairness in real estate transactions, and expanding housing options.

Now that separate versions of the Affordable Homes Act have passed both the Senate and the House of Representatives, the next step is to reconcile the differences between the two branches before final implementation. The law represents a substantial commitment by Massachusetts to address its housing challenges comprehensively and inclusively.

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