Affordable Homes Act to build or save 65,000 homes through $5.1 billion in authorizations and 49 policy initiatives

Boston - Governor Maura Healey today signed into law the most ambitious legislation in Massachusetts history to tackle the state’s greatest challenge – housing costs. The Affordable Homes Act and related initiatives will support the production, preservation and rehabilitation of more than 65,000 homes statewide over the next five years. It is the largest housing bond bill ever filed in Massachusetts, at more than triple the spending authorizations of the last housing bill passed in 2018. 

The historic legislation authorizes $5.16 billion in spending over the next five years along with 49 policy initiatives to counter rising housing costs caused by high demand and limited supply. Key spending authorizations and policy changes include allowing accessory dwelling units, an unprecedented investment in modernizing the state’s public housing system, boosts to programs that support first-time homebuyers and homeownership, incentives to build more housing for low to moderate-income residents, support for the conversion of vacant commercial space to housing and support for sustainable and green housing initiatives.  

“The Affordable Homes Act creates homes for every kind of household, at every stage of life, and unlocks the potential in our neighborhoods. Today we are taking an unprecedented step forward in building a stronger Massachusetts where everyone can afford to live,” said Governor Healey. “What the Affordable Homes Act represents is our ability to come together and address our toughest challenges. I am deeply grateful to our partners in the Legislature for their leadership and look forward to the work ahead in implementing this law and making affordable homes a reality for every resident of our state.”

“Housing plays a critical role in supporting our local economies and this bill will make a meaningful difference in helping Massachusetts residents to live, work and stay here in the state that they love,” said Lieutenant Governor Kim Driscoll. “We went big with the Affordable Homes Act, and it received incredible support from members of the Legislature, advocates, employers, business leaders and health care professionals. Together we understand the importance of investing in housing in order to remain a competitive state.” 

In addition to the unprecedented level of spending authorizations, the Affordable Homes Act creates key policy initiatives, including allowing accessory dwelling units under 900 square feet by right on single-family lots. Often referred to as in-law apartments, accessory dwelling units can be attached or detached from a single-family home and often take shape as a basement or attic conversion, a cottage in a backyard or a bump-out addition to a home. This new policy replaces a patchwork of zoning regulations across the state with a uniform law that allows homeowners on single-family lots to add these small units without needing a special permit or variance unless they want to add more than one. Construction of ADUs is still subject to local building codes. The Healey-Driscoll Administration estimates that between 8,000 and 10,000 ADUs will be built across the state over the next five years due to passage of the law. 

Another significant policy action enacted with the Affordable Homes Act is the creation of a Seasonal Communities designation. The Seasonal Communities designation is the first step in developing unique tools for communities with a substantial variation in their housing needs due to seasonal employment in places such as Cape Cod and the islands and the Berkshires. A framework for these tools will be developed by a Seasonal Communities Coordinating Council, which the Affordable Homes Act also creates. 

“From ADUs to seasonal communities, this administration in partnership with the Legislature has now adopted some of the most forward-looking and proven practices to not only meet this moment, but also set a course to meet the housing needs of our communities for years to come,” said Housing and Livable Communities Secretary Ed Augustus. “The passage of the Affordable Homes Act is a monumental step toward building a Massachusetts where everyone – from our talented workforce and families to our retirees – can afford to live and thrive.”

In addition to new policy initiatives and spending authorizations for housing, the Affordable Homes Act authorizes a record $2 billion for the repair, rehabilitation and modernization of the state’s public housing portfolio. Massachusetts has the largest public housing portfolio in the U.S. with more than 43,000 units, but it has been underfunded for decades. 

“Public housing is a vital piece of our housing portfolio here in Massachusetts,” said Deputy Secretary of Housing and Livable Communities Jennifer Maddox. “It provides access to affordable housing for thousands of residents while also serving as one of our best defenses against homelessness. But for too long it has suffered from underinvestment. With the passage of this bill, we say to those residents, you deserve to live with dignity in a community you can be proud of.”

The bill also creates additional opportunities to develop vacant or underutilized commercial space into housing through the creation of the Commercial Property Conversion program and the Commercial Property Conversion Tax Credit.

“The availability of housing, particularly housing that families can afford, is at the core of everything we hope to accomplish. Our economy and our state are only as strong as the people who live here, and the Affordable Homes Act represents a huge step forward, giving us the tools we need to speed the production of new homes,” said Administration and Finance Secretary Matthew J. Gorzkowicz. “Since taking office, we have been able to significantly increase capital spending for housing, dedicating 52 percent of the growth in the capital budget over the past two years to this mission. We remain committed to continuing to make progress in this area to realize the full potential of this legislation.”

Other key initiatives include the creation of the Momentum Fund. This new program creates a permanent revolving fund to be administered by MassHousing to accelerate the development of mixed-income multifamily housing. The Affordable Homes Act authorizes an initial $50 million for the fund, which will help directly move the needle on the development of multifamily homes that can be difficult to build due to the high-cost environment. 

“The Healey-Driscoll Affordable Homes Act is a critically important and comprehensive piece of legislation that will make housing in Massachusetts more accessible, more available and more affordable,” said Newton Mayor Ruthanne Fuller. “Newton was pleased to welcome Governor Healey, Lieutenant Governor Driscoll, Housing Secretary Augustus and Secretary of Administration and Finance Gorzkowicz to Newton for the official signing of this landmark legislation. It is fitting that the ceremony was held at the Golda Meir House so that we can shine a light on the amazing work of 2LifeCommunities, a leader in providing affordable housing here in Newtown and Greater Boston.”

Other programs receiving dramatic increases in authorizations by the Affordable Homes Act include $800 million for the Affordable Housing Trust Fund, which doubles the previous authorization, an increase in the Housing Stabilization and Investment Fund to $425 million and $275 million for sustainable and green housing initiatives, which is more than four times the previous authorization. The Historic Rehabilitation Tax Credit – a key component for repurposing historic properties for housing – is doubled to $110 million with this law.  
 
At Tuesday’s event in Newton, Governor Healey also announced new Responsible Contractor Guidance for affordable housing developments funded by the Executive Office of Housing and Livable Communities. These standards reflect the commitment of the Healey-Driscoll Administration and HLC to assure that construction workers receive the full protection of our labor laws, including prohibitions against wage theft and compliance with worker protections. The Responsible Contractor Standards further reflect this administration’s commitment to making sure that those who violate these laws do not participate in projects receiving funding from many of the resources authorized in this bill. 

The Affordable Homes Act is one piece of the Healey-Driscoll Administration’s strategy to push back against rising housings costs impacting Massachusetts residents. The Administration continues to work with 177 communities on implementation of the MBTA Communities Law signed into law in 2021 and last fall, the governor signed three executive orders targeted at increasing housing production. Those executive orders created a Housing Advisory Council to develop a statewide housing plan, created an Unlocking Housing Production Commission to develop recommendations for streamlining housing production and directed state agencies to develop an expanded inventory of state-owned land suitable for housing. And the governor’s tax cuts signed into law last fall included substantial increases to both the Housing Development Incentive Program and the Low-Income Housing Tax Credit, two programs important to building both market rate and low-income housing. 

Statements of Support

Senate President Karen E. Spilka (D-Ashland): 
“An affordable, equitable, and competitive Commonwealth is one in which a renter can find an apartment within their budget, a family can afford a down payment on their first home, and residents aren’t priced out of communities where they want to live. With the Governor’s signature, the Affordable Homes Act will help us take a powerful step towards making that vision a reality, while rectifying decades of underinvestment that has led to our housing crisis. I am profoundly grateful to Governor Healey for filing this bill, Senators Edwards and Brownsberger for their leadership on the Senate and compromise bills, all of my colleagues in the Senate and our partners in the House, as well as all of the advocates and stakeholders who worked with us to take meaningful action on housing this session.”

House Speaker Ronald J. Mariano (D-Quincy): 
“I’m incredibly proud of the investments included in this bill, which together make the largest investment in affordable and middle-income housing in the history of the Commonwealth. Given that Massachusetts is one of the most expensive states in the entire country to buy a home or rent an apartment, the funding and tax credits provided by this bill will be crucial as we work to ensure that every Massachusetts resident can afford to live here, work here, and raise a family here. I want to thank Governor Healey for filing the Affordable Homes Act, as well as my colleagues in the House and our partners in the Senate for carefully considering every aspect of this legislation, and for recognizing the need for significant action on housing.”

Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means: 
“With the Governor today signing the Affordable Homes Act, we in state government delivered on our promise to fully address the housing crisis that we face in the Commonwealth today. It is truly the greatest single impediment to really making it in Massachusetts, where realizing the American Dream is getting tougher every day. This crisis takes many forms, the lack of available housing, the lack of affordable housing, housing access, penalties for the under-served communities, and the wait list for seniors and lower income families. This comprehensive housing package eliminates those barriers-and more-by dedicating $5.16 billion in a multi-year package to tackle this crisis head on. The signing of this legislation today now puts these ambitious plans in motion.”

Senator Lydia Edwards (D-Boston), Senate Chair of the Joint Committee on Housing: 
“I am thrilled to celebrate the official signing of the Affordable Homes Act, a transformative piece of legislation that promises to bring much-needed relief to countless families across our state. This act is a testament to our commitment to ensuring every resident has access to safe, affordable housing, and it represents a significant step forward in our ongoing efforts to build stronger, more inclusive communities. I applaud Governor Healey and my fellow legislators for their dedication and hard work in making this vision a reality. Together, we are laying the foundation for a brighter, more equitable future for all.”

Representative James Arciero (D-Littleton), House Chair of the Joint Committee on Housing: 
“I am incredibly proud to celebrate the signing of the Affordable Homes Act, the largest investment in housing in the history Massachusetts, with my colleagues in the Legislature and the Healey-Driscoll Administration. The Affordable Homes Act is the first, major critical step needed in addressing our housing crisis. It reduces barriers for individuals seeking affordable home options, increases housing production and inventory, and creates more tools in the toolbox to help cities and towns offer more affordable housing options. This encompassing bill showcases critical input from our state and local officials, community stakeholders, advocates and residents. It demonstrates our collective work from housing tours, from hours of hearings and testimonies and countless meetings. Everyone has made a stamp on this historic bill.”

Chrystal Kornegay, CEO, MassHousing: 
“This is an historic bond bill, and we congratulate the Governor and Lieutenant Governor, their team, and the Legislature for working together to make the Affordable Homes Act a reality. This legislation will accelerate new mixed-income housing production, help more Massachusetts families achieve homeownership, and bring substantial clean energy improvements to the residents of affordable housing communities. MassHousing looks forward to acting as a partner in the bill’s implementation.”

Tamara Small, CEO, NAIOP Massachusetts: 
“NAIOP is grateful to the Healey-Driscoll Administration and the Legislature for their commitment to advancing bold legislation to meet the needs of residents across Massachusetts. This legislation is an important step for the Commonwealth - and sets us on the right path to tackle our 200,000-unit shortfall. NAIOP looks forward to continuing to work with policymakers and the development community to address barriers to new housing development while advancing creative solutions to move the ball forward on housing.”

Greg Vasil, CEO of the Greater Boston Real Estate Board:

“This new law is a dynamic and bold statement of Massachusetts' efforts to address this longstanding housing crisis, particularly the efforts to reduce barriers to and investing heavily in housing creation. We applaud the Governor and her administration, the Speaker, Senate President and all the stakeholders who are dedicated to leading the Commonwealth through this moment and championing reforms which are paramount to making Massachusetts a more affordable place to live and work.”

Roger Herzog, Executive Director, Community Economic Development Assistance Corporation (CEDAC): 
“The Affordable Homes Act (AHA) is impactful legislation that meets this historic moment of need head-on. Governor Healey, Lt. Governor Driscoll, Secretary Augustus and team created a bold package that will now significantly increase opportunities to finance, produce and revitalize much-needed affordable housing – especially for low-income households across Massachusetts. CEDAC is eager and ready to play an important role in this comprehensive approach through the bond programs it manages for the production and renovation of supportive housing and childcare facilities. CEDAC is also excited about the Supportive Housing Pool Fund established as part of the legislation, which will support production and operation of permanent supportive rental housing for a wide range of individuals and families. The passage and enactment of this bill truly demonstrates how committed the Healey-Driscoll Administration has been about addressing the need to create more affordable housing in our state and creating a comprehensive housing policy infrastructure. In addition to the capital authorizations for housing programs, its many and exciting provisions include new zoning and funding resources, and a renewed focus on equity issues through the creation of an Office for Fair Housing. I applaud the Massachusetts Legislature for their swift passage of this critical piece of legislation.” 

 Jay Ash, President and CEO, Massachusetts Competitive Partnership: 
“This historic bill will address one of Massachusetts most pressing issues - the housing crisis that is limiting opportunities for individuals and families and creating a stranglehold on our economy. The Healey-Driscoll Administration and Housing Secretary Augustus, as well as our Legislature, deserve a great deal of credit for prioritizing record funding and promising initiatives that will support the housing production our state needs.  If ever we needed to adopt the mantra 'build baby build' - it's now, in Massachusetts, for housing.  This new act will provide the resources for developers to build and for many of us to contribute to housing solutions that will benefit our residents and our economy."  

Clark Ziegler, Executive Director, Massachusetts Housing Partnership: 
“The Affordable Homes Act is a major step forward for the Commonwealth. It includes an unprecedented state financial commitment to affordable housing coupled with bold policy reforms that will unlock housing production and help put a lid on rising housing costs. A bill of this magnitude was only possible because the Governor and House and Senate leadership came together to confront the state’s housing crisis. They recognized that the Commonwealth’s future depends on our ability to ensure housing opportunity for all our residents. There’s always more to be done and Governor Healey has laid the groundwork for even further progress in the next legislative session.”

Symone Crawford, Executive Director, Massachusetts Affordable Housing Alliance: 
“MAHA applauds the passing of this historic Bond Bill and Gov. Healey's leadership. While this is a significant step forward, we recognize that there is still much work to be done to close the racial homeownership gap in Massachusetts. Let's continue to push for progress and ensure equitable access to homeownership for all.”

JD Chesloff, President & CEO, Massachusetts Business Roundtable: 
“In a recent survey of Roundtable members – CEOs and senior executives from some of the largest employers in Massachusetts – 83% cited the state’s high cost of living as our greatest competitiveness challenge, and 91% said addressing the high cost of housing by increasing production was the best solution. This is the focus of the Affordable Homes Act, a bold step in addressing our state’s housing challenges. The Roundtable is grateful to Governor Healey, Secretary Augustus, and the Legislature for advancing this essential and comprehensive law. We look forward to working collaboratively with all stakeholders as we transition to the law’s implementation.”

Jesse Kanson-Benanav, Executive Director of Abundant Housing Massachusetts: 
“It was a great honor to work with Governor Healey’s team and partners in the legislature to advocate for Accessory Dwelling Units by-right statewide. I am proud that Massachusetts will now have the strongest ADU law in New England. This is a critical win for the growing pro-housing movement in Massachusetts. ADUs are a gentle yet effective tool in the Massachusetts toolbox to address our severe housing storage. We look forward to continuing our work together to build more attainable homes for current and future residents.”

Michael Duffany, Founder of M. Duffany Builders in Falmouth and President of the Home Builders and Remodelers Association of Massachusetts: 
“With today’s signing of the Affordable Homes Act, Governor Healey has made good on her promise to tackle the state's greatest challenge – the lack of affordable housing, especially new single-family homes for first-time and first-generation homebuyers. The American Dream of owning a home is still the best way for middle class families, especially those who have been historically excluded from homeownership, to build wealth for the future.”

Bart Mitchell, President & CEO, The Community Builders: 
“The Affordable Homes Act is the bold action Massachusetts needs. Thanks to Gov. Healey’s groundbreaking leadership and record investments, this legislation gives communities strategic new tools to make neighborhoods more affordable, equitable and resilient. As a mission-driven housing provider in Massachusetts for over 60 years, TCB applauds the Healey Administration for helping us build and sustain strong communities where all people can thrive.” 

Nicole Obi, President & CEO, Black Economic Council of Massachusetts:

“BECMA is pleased to see the Affordable Homes Act signed into law today, ensuring critical investments that will increase affordable homeownership and support equitable housing development across the Commonwealth. We’ve advocated for the passing of this bill throughout the legislative session because of the initiatives and provisions, including funding for MassDREAMS, the CommonWealth Builder Program, Sustainable and Green Housing Initiatives, and the Office of Fair Housing and the Fair Housing Fund, that will promote inclusive economic growth for small, diverse business owners and communities of color.” 

Daphne Principe-Griffin, Interim President & CEO, United Way of Massachusetts Bay: 
“The Affordable Homes Act will help ensure everyone benefits from our Commonwealth’s housing investments – including, and especially, those who have the most to gain from them – our neighbors experiencing homelessness. The Affordable Homes Act provides United Way and our partners the ability to expand on highly effective, cost-efficient and proven strategies to reduce, and ultimately end, chronic homelessness in Massachusetts. It will benefit our entire community, and especially our neighbors with behavioral health needs or substance addiction needs, survivors of domestic violence, survivors of human trafficking, survivors of sexual violence, and those at risk of entering or transitioning out of the foster care system.  Thanks to the Healey Administration and House and Senate leadership, supportive housing and services will now be more quickly and equitably accessed by our most vulnerable residents. We applaud the collective efforts of legislative champions and advocates that ensure all are given the foundation of stable housing needed to thrive.”

Donna Brown-Rego, Executive Director, MassNAHRO: 
“MassNAHRO and the 240 Local Housing Authorities that we represent are beyond excited about the Affordable Homes Act. This historic investment in public housing will allow LHAs to invest, upgrade, preserve, and expand the public housing portfolio to ensure more residents of the Commonwealth have safe and suitable homes. We thank the Healey-Driscoll Administration, the House, and the Senate for prioritizing this important issue.”

Brooke Thomson, President & CEO, Associated Industries of Massachusetts: 
“The Affordable Homes Act represents a significant step toward addressing the Commonwealth's housing crisis. The bill provides much-needed investments and implements key policy changes without imposing any anticompetitive policies. This historic investment will help to reduce the prohibitive cost of housing in the state and help to ensure that the people who work for Massachusetts businesses can also live here. We have a supply problem, and the only solution is to build our way out and provide access to thousands of new homes for our workers. AIM appreciates the opportunity to collaborate with the Healey-Driscoll Administration and the Legislature on this important measure.”

Michael Curry, Esq., President and CEO of the?Massachusetts League of Community Health Centers: 
"We applaud the Healey-Driscoll administration and the Legislature for passing The Affordable Homes Act to fight back against high rent and home prices, which have outpaced household incomes for years. By addressing the housing crisis head-on, we have a once-in-a-generation opportunity to reduce the inequities caused by astronomical housing prices, give families a chance to create generational wealth by increasing home ownership opportunities, and provide much needed support for all workers, including our health center workforce, who increasingly cannot afford to live in the communities they serve." 

Lizbeth Heyer, President of 2Life Communities: 
“The Affordable Homes Act embodies an unprecedented commitment to addressing the housing crisis and ensuring Massachusetts is an affordable place for all residents to call home. “This bill unlocks incredible potential to ensure that every demographic in the state has a home that meets their needs, and we are especially grateful for the creation of a special commission tasked with making recommendations for the production of safe, affordable, and healthy senior housing. We applaud the Healey-Driscoll Administration and the Legislature for their bold leadership on this urgent issue.”  

Viviana Abreu-Hernandez, President of MassBudget: 
“The Affordable Homes Act is a meaningful step on the path toward more equitable housing policy in our state. It authorizes urgently-needed investments in affordable housing and public housing, reduces barriers to production by allowing Accessory Dwelling Units (ADUs) by right, and takes important steps toward equity by establishing a fair housing office, foreclosure mediation pilot, and the sealing of some eviction records. We know that no one bill can solve our housing crisis by itself. As we celebrate this victory, we must continue to work with urgency to establish ongoing revenue sources to meet our affordable housing needs, and to stabilize all residents who are facing displacement and homelessness.”

Worcester City Manager Eric D. Batista: 
“The Affordable Homes Act is a critical piece of legislation to help address the housing crisis and jumpstart the production of new housing. Thank you to the Healey-Driscoll Administration and EOHLC Secretary Augustus for their continued prioritization of affordable housing resources. As the second largest city in New England, the City of Worcester understands the important role we play in addressing affordable housing across the Commonwealth and we look forward to continued partnership with the state to implement creative, bold housing solutions.” 

Aaron Gornstein, President and CEO of Preservation of Affordable Housing: 
“This historic housing legislation will provide unprecedented new resources to expand affordable housing production and preservation initiatives across the Commonwealth. We are grateful to the Healey-Driscoll Administration and the Massachusetts legislature for ensuring that the housing needs of low- and moderate-income residents are at the forefront of their policy agenda.” 

Gilbert Winn, CEO of WinnCompanies: 
“The groundbreaking Affordable Homes Act will have an immediate impact on the Commonwealth’s housing needs by unleashing numerous affordable and mixed-income projects that had been awaiting adequate resources to move into construction. It will deliver a tangible boost to our state’s competitiveness and quality of life. We’re very fortunate to have the Healey-Driscoll Administration and a Legislature willing to commit tremendous resources to well-designed programs that match urgency of the moment.

Timothy P. Murray, President & CEO of Worcester Regional Chamber of Commerce:
“The Affordable Homes Act will not only help create desperately needed housing for people of all income levels, but equally as important, create countless job opportunities in the construction trades.” 

Georgia Katsoulomitis, Executive Director of Massachusetts Law Reform Institute: 
"We commend the Governor and legislators for advancing critical protections for tenants to enable them to seal their eviction record, for public housing tenants facing redevelopment so they will have technical assistance to help them through complicated deals, and for owners facing foreclosure. Housing is a human right and we look forward to our continued collaboration on these productive, positive policies."

Walter Ramos, J.D., President and CEO of Rogerson Communities: 
“Massachusetts is amid a once in a generation housing crisis and the passage of today’s legislation provides many tools and resources to navigate through it. This bill will produce several of the puzzle pieces needed to address the broad housing needs of individuals at every age in our Commonwealth and, as an organization focused on older adults, we are specifically delighted to see the creation of a special commission focused on those with disabilities and seniors as a major step in dealing with this segment of the emergency. We are grateful to the Healey-Driscoll Administration, and the leadership of the House and the Senate for getting this historic legislation to this point. Now the time to put these tools to work is upon us.”

Eneida Román, President and CEO of Amplify LatinX:
“In working to advocate for and advance Latino prosperity in the Commonwealth, we know that housing affordability is one of the main concerns for Latinos, which make up 14% of the state’s population. We celebrate the signing of the Affordable Homes Act and look forward to continuing to collaborate with our legislative partners, the Governor’s office, and the Latino community in support of more measures that address equity gaps, boost Latino prosperity, and ultimately, make Massachusetts a more equitable, economically competitive place where everyone can thrive.”