Massachusetts Senate takes bold action to address housing crisis – The Valley Patriot

By: State Senator Pavel Payano – July 224

In a critical step to address Massachusetts’ ongoing housing crisis, the Massachusetts Senate unanimously passed S.2834, also known as the Affordable Homes Act. This legislation represents significant progress in improving housing affordability, availability, and equity across the state.

The Affordable Homes Act is a multifaceted initiative that combines $5.4 billion in funding with substantive policy reforms. Its main goals include building new housing units, accelerating rehabilitation of existing housing stock, reducing barriers to development, and promoting affordable housing initiatives. These measures are intended to alleviate the pressures that have contributed to housing shortages and rising costs in Massachusetts.

Thank you to Senate President Karen Spilka, Senate Ways and Means Committee Chairman Michael Rodrigues, and Housing Committee Chair Lidia Edwards for supporting one of the amendments I successfully pushed through. Amendment 168 secured improvements to Massachusetts’ Chapter 40R program. Chapter 40R was first passed in 2004 and provides incentives for municipalities to implement smart growth zoning to encourage compact residential and mixed-use development.

The amendment, which passed overwhelmingly, proposes significant updates to the program’s financial incentives to better align them with current economic realities and inflation. Specifically, the one-time incentive payment will be nearly doubled and the bonus payment per new housing unit will be increased from $3,000 to $6,000.

40R was successfully implemented in Haverhill, where smart growth initiatives revitalized the central business district and converted factory sites into housing units. Originally, these efforts resulted in significant 40R incentive payments, but inflation had reduced their impact over the years. By passing the amendment, Massachusetts hopes to give more communities the opportunity to zone affordable and dense housing, thereby promoting vibrant communities statewide without the need for 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 reforms:

1. Public housing rehabilitation: $2.2 billion will be allocated for repairs and upgrades to federally subsidized public housing to ensure safer and more sustainable living conditions for thousands of families. A portion of this funding, $150 million, is earmarked for energy-efficient upgrades to meet the state’s climate goals.

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

3. Sustainable building practices: $275 million will be allocated to promote innovative and environmentally friendly housing construction practices, contributing to Massachusetts’ efforts to combat climate change.

4. Support for first-time homebuyers: Approved $200 million for the CommonWealth Builder program, which aims to increase homeownership opportunities in gateway cities. This initiative not only promotes economic growth but also revitalizes urban areas.

5. Infrastructure Investments: $375 million will be allocated to HousingWorks, which supports essential infrastructure improvements needed for new housing developments, including addressing water, sewer and wastewater issues and promoting best practices in transit-oriented development communities.

6. Equity and Fairness: Implements policies such as protecting tenants from realtor fees, establishing equity-focused housing offices, sealing eviction records in certain cases, and encouraging accessory dwelling units (ADUs) in residential neighborhoods. These initiatives aim to improve housing stability, promote fairness in real estate transactions, and expand housing options.

Now that the Senate and House have passed different versions of the Affordable Homes Act, the next step is to resolve the differences between the two branches of government before final passage. The law represents a major commitment by Massachusetts to address its housing problems in a comprehensive and inclusive manner.

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