Senate votes to inject $5.4 billion into housing in an effort to put homeownership and affordable units within reach

Senator Pacheco advocates for further protections for manufactured housing communities

Boston — Dean of the Massachusetts Senate Marc R. Pacheco (D-Taunton) announces that the Senate has passed the Affordable Homes Act, which 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.

“This bill makes significant strides toward solving our housing crisis here in the Commonwealth,” said Senator Pacheco. “This comprehensive bill accounts for a wide variety of policies meant to make housing more affordable, equitable, and available.”

The legislation, S.2834, An Act relative to affordable homes, 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.

An amendment sponsored by Senator Pacheco earmarked millions of dollars in funding authorizations for construction and improvement projects involving modernization, energy efficiency, and sustainability for local housing authorities in the district.

“The funding authorization made available in this legislation bolsters our local housing authorities’ abilities to provide the adequate housing services and supports needed for some of our community’s most vulnerable residents,” said Senator Pacheco. “I was pleased to have it adopted as an amendment in this bill.”

The amount local housing authorities received in the amendment was:
• $500,000 to the Carver Housing Authority for housing improvements
• $500,000 to the Dighton Housing Authority for improvements
• $1,000,000 to the Middleborough Housing Authority for improvements
• $500,000 to the Raynham Housing Authority for improvements
• $500,000 to the Rehoboth Housing Authority for the design and construction of new senior housing units
• $3,500,000 to the Taunton Housing Authority for improvements
• $500,000 to the Wareham Housing Authority for new senior housing construction and improvements

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% of the 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 down payment 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 supports. 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 bill 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 buyers 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 to produce homeownership units for households that make up to 120% of the area median income, incentivizing housing production and promoting homeownership opportunities.

Following a robust debate, the Senate passed the legislation unanimously. With separate versions having passed the Senate and the House of Representatives, the two branches will now reconcile the differences.

In addition to the housing bond bill, Senator Pacheco is continuing to work on important housing initiatives that will have impacts in the Third Bristol & Plymouth district and across the Commonwealth.

This includes S.899 An Act relative to manufactured housing communities, a bill sponsored by Senator Pacheco that is currently referred to the Senate Committee on Ways and Means. The legislation would build on the historic 1993 Manufactured Housing Act, which was also sponsored by Senator Pacheco.

“This bill makes small changes and updates to the 1993 Manufactured Housing Act, which has had a monumental impact on manufactured housing communities and their residents all across the Commonwealth over the past 31 years,” said Senator Pacheco. “This bill will provide homeowners with even greater rights and protections when dealing with manufactured housing community owners.”

The bill would address current issues between manufactured housing community owners and the homeowners who live in those communities.

“There are over 260 manufactured housing communities across the Commonwealth, with over 22,000 units housing between 40,000 to 50,000 residents, the majority of whom are seniors and low-income households,” said Senator Pacheco. “This bill expands on protections for homeowners who are in a unique relationship with community owners where the resident who owns their home does not own the property beneath their home.”

The bill creates a manufactured housing dispute resolution program, run by the Manufactured Housing Commission and funded by the Manufactured Housing Trust Fund, to address complaints from residents, owners, and operators.

“The manufactured housing dispute resolution program is an important step in providing residents with the resources they need when issues arise,” said Senator Pacheco. “The creation of the resolution program allows all stakeholders to come to the table with the resources they need to ensure a fair and equitable process.”

Community owners will be required to give 90-day notice to residents should the community’s governing rules be amended, promulgated, or deleted. 45 days will also be provided for the Secretary of Housing and Livable Communities to review the rules for compliance with housing law.

The bill would also strengthen the Right of First Refusal by requiring community owners to give residents notice of any intentions to sell all or part of the land on which the community is located, along with notifying the Attorney General, the Secretary of Housing and Livable Communities, and the local board of health.

Those notified offices, as well as residents, will also be required to receive notice of offers, including the sale price and terms and conditions.

A homeowners group comprised of at least a majority of those residing in the community shall have the right to purchase the community if an owner intends to accept a third-party offer or lease the land to a third-party.

No owner shall unreasonably refuse or delay the execution or closing of a purchase, sale, or lease agreement with residents who have made a bona fide offer to meet the price and substantially equivalent terms and conditions.

“Manufactured housing residents must be empowered to determine the future of their communities and preserve their way of life,” said Senator Pacheco. “We will not see improvements to our housing crisis if we do not empower residents to determine the future of the homes and communities they live in.”

A manufactured housing community owner planning to change the use of or discontinue a community would also be required to first obtain a permit and shall disclose and describe, in their written permit application, the nature of the change of use or discontinuance and its reasoning.

A permit will not be granted unless the owner has demonstrated that the change of use or discontinuance is in good faith. The owner will also be required to give at least 15 days of written notice, delivered by mail, to each manufactured housing community tenant to give them notice they are appearing before a government board to request that permit. Upon approval, the owner shall give to each tenant at least two years of written notice, delivered by mail, that a change of use or discontinuance will occur.

“In an age where it is getting more and more difficult to find housing, and especially affordable housing options, the vulnerable residents of these communities need to have the time to prepare for the displacement that the discontinuance of their community would bring,” said Senator Pacheco.

While the Affordable Homes Act is an impactful piece of legislation aimed at solving the state's housing crisis, Senator Pacheco will continue to advocate for the bill to be passed by the end of the legislative session.

“The manufactured housing community was left out of the Affordable Homes Act in a big way,” said Senator Pacheco. “The right thing to do for these residents is to bring S.899 to the floor for a vote.”