(BOSTON 6/28/2024) — The Massachusetts Senate took action yesterday to address the state’s housing crisis. S.2834 – An Act relative to affordable homes, also known as the Affordable Homes Act, authorizes $5.4 billion in borrowing and makes crucial policy changes with the goal of building new housing, accelerating the rehabilitation of existing housing, reducing barriers to development, and promoting affordable housing. The legislation was passed unanimously.
During Senate debate, Senator Michael Moore secured a number of amendments to the Affordable Homes Act, including:
Securing the right to a home inspection – this amendment directs the Executive Office of Housing and Livable Communities to implement a regulation that secures a buyer’s right to have an inspection done on a property before finalizing the purchase of a home. While this provision does not require a buyer to have a home inspection done, it bans the conditioning of a sale on waiving or limiting the buyer’s right to inspect the home.
Creating the Crumbling Concrete Assistance Fund – a bipartisan effort between Senators Michael Moore, Peter Durant, and Ryan Fattman, this amendment creates a program that, if funded, can provide financial assistance to homeowners for the repair or replacement of concrete foundations that have deteriorated due to the presence of pyrite or pyrrhotite. It also creates a Working Group to make regulatory and legislative changes to address property deterioration due to the presence of the minerals.
Creating the Interbasin Transfer Review Commission – the Interbasin Transfer Act, passed in 1984, requires the Massachusetts Water Resources Commission conduct a lengthy review process if a town or city wants to make any arrangement that transfers water or wastewater outside of its river basin of origin, such as connect to the Massachusetts Water Resources Authority. This stifles the growth of housing, the remediation of PFAS water contamination, and more. The Interbasin Transfer Review Commission will study whether the law is meeting its original goal.
Allocates bonds for infrastructure upgrades supporting housing development – these amendments provide earmarks for sewer, septic, water, storm water management, roads, sidewalks, traffic controls, and public safety infrastructure upgrades that support housing development, preservation, or rehabilitation. $7 million was allocated for towns and cities in the Second Worcester District, including:
Auburn – $1 million
Grafton – $1 million
Millbury – $1 million
Shrewsbury – $1 million
Westborough – $1 million
Worcester – $2 million
“Everyone should be able to find a home that is safe, secure, and – most importantly – affordable. Unfortunately, housing has become unattainable for so many in the communities they’ve long called home,” said Senator Michael Moore (D-Millbury). “The passage of the Affordable Homes Act represents a step toward addressing the crushing housing crisis we face here in the Commonwealth. While we still have a lot more to do to produce more homes and get the prices of those homes under control, this bill signals that the Legislature is willing to take on the challenge. I look forward to continuing our work on Beacon Hill to find more solutions that will protect and expand opportunities to rent and own a home in communities across the Commonwealth.”
The legislation makes important investments in public housing; housing affordability; sustainable building initiatives; initiatives for first-time homebuyers; essential infrastructure; geographic equity; and incentivizing local best practices. Additionally, the bill includes policy proposals to further housing equity for both homeowners and renters. The bill contains $5.4 billion in bond authorizations, including:
Creating and Repairing Public Housing
The Senate Affordable Homes Act provides $2.2 billion for repairs, rehabilitation, and renovation across the 43,000 units of state-aided public housing. This significant investment ensures that the state's public housing infrastructure remains safe, modern, and sustainable, so it can continue providing quality living conditions for thousands of families.
To ensure that the Commonwealth makes strides towards its climate goals as it creates housing, $150 million of the funding for public housing is specifically allocated to making energy efficient upgrades.
Spurring Affordable Housing Units
A further $425 million will go to the Housing Stabilization and Investment Trust fund, working with municipalities, non-profits, and developers to support housing preservation, new construction, and rehabilitation projects for affordable rental units. This will help the longevity and sustainability of affordable housing stock, addressing both immediate needs and long-term housing solutions.
It additionally adds $800 million into the Affordable Housing Trust Fund to create and preserve housing for households with an income at or below 110 per cent of area median income, helping to bridge the gap between the high cost of housing and what many families can afford.
Building Sustainably
This bond bill includes $275 million for innovative, sustainable, and green housing initiatives. By finding new ways to build that don’t have such a detrimental environmental impact, these initiatives will help pave the way for a greener housing portfolio in Massachusetts and will be an important part of the state’s response to the climate crisis.
Supporting First-Time Homebuyers in Gateway Cities
The Senate Affordable Homes Act authorizes $200 million for the CommonWealth Builder program to further the production of housing in gateway cities for first-time homebuyers. This initiative supports economic development in these cities, helping families achieve homeownership and contributing to the revitalization of urban areas.
The legislation also includes $50 million for MassDreams, a program that provides downpayment and closing cost grants to first-time homebuyers who meet the program's eligibility criteria and who currently live in one of the 29 communities that were disproportionately impacted by the COVID-19 pandemic.
Maintaining Essential Infrastructure
The bill provides $375 million for HousingWorks, a program that awards grants to municipalities and other public entities for a variety of infrastructure-related support. Improving essential infrastructure supports the health and safety of residents and the feasibility of new housing projects.
Of this amount, $100 million will be dedicated to addressing water, sewer, and septic challenges tied to housing developments, and $100 million will help incentivize best practices in communities that have adopted the Community Preservation Act (CPA) and are spending a high percentage of those funds on housing, as well as MBTA communities that are going beyond the minimum requirements set forth in the MBTA zoning law passed in 2021. Communities that have been proactive in creating transit-oriented development, which reduces traffic congestion and promotes sustainable urban growth, will be eligible.
Addressing Regional Equity
The legislation includes $150 million in dedicated funds to address the unique housing needs of rural towns, seasonal communities, and mid-sized communities. This ensures that all areas of the state, regardless of size or location, have the resources to meet their specific housing challenges.
The Senate’s Affordable Homes Act also contains multiple policy proposals to go hand in hand with the new authorizations.
Protecting Tenants from Broker Fees
By requiring that real estate brokers’ fees be paid solely by the party that contracted with them, this legislation ensures that renters are not burdened with unexpected and extraordinary costs. It also promotes transparency and fairness in real estate transactions.
Establishing Equity-Focused Housing Offices
The Office of Fair Housing and the Office of Livable Communities and Community Services will be established under the Executive Office of Housing and Livable Communities. These offices will set the Commonwealth on a path to address many decades of housing discrimination by prioritizing equity issues in housing across the Commonwealth, ensuring equal access to housing opportunities for all residents, and offering technical assistance to cities and towns that can sometimes lack dedicated housing staff.
Eviction Record Sealing
The bill introduces a process for tenants to seal their eviction records in cases of no-fault evictions and other limited scenarios. This policy protects vulnerable tenants from the long-term stigma of eviction records, enhancing their ability to secure future housing and promoting housing stability.
Accessory Dwelling Units (ADUs)
The legislation prohibits the banning or unreasonable restriction of ADUs in single-family residential zones, promoting flexible housing options. This policy enables homeowners to create additional living spaces, increases housing supply and provides more affordable rental options within established neighborhoods.
Homeownership Tax Credit
This new tax credit will be available for the production of homeownership units for households that make up to 120 per cent of the area median income, incentivizing housing production and promoting homeownership opportunities.
Separate versions having passed the Senate and the House of Representatives, the bill will now be sent to a conference committee where differences will be reconciled before it can be sent to Governor Healey’s desk.
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