Healey-Driscoll Administration Launches Starter Home Zoning Districts to Spur Homeownership Opportunities

Healey-Driscoll Administration Launches Starter Home Zoning Districts to Spur Homeownership Opportunities 

Municipalities now have a clear, voluntary option to adopt local “starter home” zoning and qualify for state incentive payments 

BOSTON — The Healey-Driscoll Administration today published final regulations implementing the state’s Starter Home Zoning District program under Chapter 40Y, giving cities and towns a new voluntary tool to encourage the development of modest-sized homes designed for first time homebuyers and expand homeownership opportunities. The regulation was published today in the Massachusetts Register and is now in effect. 

Issued by the Executive Office of Housing and Livable Communities (HLC), the regulation lays out the standards and steps for municipalities that choose to adopt Starter Home Zoning Districts to qualify for state incentive payments. Starter Home Zoning Districts are a voluntary zoning tool designed to support the development of modest-sized homes suitable for first-time homebuyers and moderate-income households. 

"Massachusetts needs more homes that people can afford and more pathways into homeownership,” said Governor Maura Healey. “Starter Home Zoning Districts give cities and towns a voluntary option to build and expand homeownership opportunities for the next generation of Massachusetts residents.”  

“Housing challenges look different from community to community. These final regulations give municipalities a practical roadmap if they want to create starter home districts, grow their housing supply and strengthen neighborhoods, with state incentive payments to support that work,” said Lieutenant Governor Kim Driscoll. 

“We focused on making this program straightforward to use and easy to follow. The final regulation clarifies the rules, aligns with state ADU policy and lays out a step-by-step process so communities can move from interest to adoption to production with confidence,” said Interim Secretary of Housing and Livable Communities Jennifer Maddox. 

Starter homes play an important role in helping young families and working households put down roots in their communities. When people are able to buy a home they can afford, they are more likely to put down roots in the community, invest in their neighborhood and build stability for themselves and their children. These homes give families room to grow while making it possible for teachers, nurses, public employees, and others to live in the communities where they work. 

What Chapter 40Y does 

Chapter 40Y creates a new, optional local zoning tool for municipalities. Communities that choose to participate can create Starter Home Zoning Districts where qualifying homes are allowed as-of-right. No special permit is required if a proposal meets the rules.  

The statute includes core requirements: 

• Allow starter homes as-of-right 
• Permit a minimum density of four units per acre of developable land 
• Limit homes to 1,850 square feet of heated living area 
• Require at least 50% of homes to contain three or more bedrooms 
• Require income restrictions for larger developments, with at least 10% of units in developments of more than 12 starter homes restricted to households earning up to 110% of AMI.  
• Permit Starter Home Accessory Dwelling Units 

Municipalities must obtain a preliminary determination of eligibility from HLC before local adoption and must receive final approval following adoption. The statute also establishes Zoning Incentive Payments and Production Bonus Payments. 

The final regulation makes the Chapter 40Y program workable by setting clear requirements and a consistent process for communities that choose to participate.  

HLC held a public comment period on the draft regulation in the summer of 2025. After reviewing public feedback, the agency made clarifications and refinements before filing the final regulation with the Secretary of State for publication. 

The Starter Home Zoning District program builds on the Healey-Driscoll Administration’s broader efforts to bring down housing costs by increasing housing supply across Massachusetts.  

Since taking office, Governor Healey has focused on expanding pathways to homeownership, increasing housing production and lowering costs. Her administration has advanced new efforts to help first-time homebuyers, including expanding down payment assistance and lowering mortgage rates to make it easier for Massachusetts residents to buy their first home. At the same time, to build more homes, she has taken action to speed up the permitting process, turn state land into thousands of new homes, convert downtown commercial space into apartments and create a first-in-the-nation fund to finance mixed-income development in a time of high interest rates. She also legalized Accessory Dwelling Units (ADUs), and this year, her administration will be offering low-cost financing and free designs for anyone who wants to add an ADU to their home. To help people afford their mortgages and rents right now, she banned mandatory renter-paid broker fees, gave seniors up to $2,800 a year to help with housing costs, and expanded home inspection protections.