One Year After Signing Affordable Homes Act, Nearly 100,000 New Housing Units Under Development to Lower Costs in Massachusetts
BOSTON – One year after Governor Maura Healey signed the Affordable Homes Act (AHA) into law, the Healey-Driscoll Administration’s housing agenda is delivering results to increase the production of reasonably-priced housing and lower costs across the state. A new digital thermometer released by the administration today shows that since Governor Healey took office, more than 90,000 new housing units have been completed or are set to enter development.
Governor Healey signed the Affordable Homes Act, the state’s most ambitious investment in housing in history, into law on August 6, 2024. This historic law – combined with the administration’s other initiatives such as converting vacant state-owned land into housing, commercial to housing conversions, increased housing development tax credits under Governor Healey’s tax cuts package, and the MBTA Communities Law – are already delivering results for the people of Massachusetts.
Program | Est. total units* |
Momentum Fund | 461 |
Accessory Dwelling Units (permits and approvals) | 732 |
Housing Development Incentive Program (HDIP) | 1,525 |
MBTA Communities multifamily zoning pipeline | 5,200 |
Comprehensive permits (40B) | 8,360 |
EOHLC-funded projects | 10,566 |
Additional housing development | 63,510 |
| 90,354 |
*Represents units completed, permitted, awarded funds or in development pipeline. |
“Our administration is delivering on building more reasonably-priced housing,” said Governor Healey. “Because of the Affordable Homes Act and other initiatives, seniors now have more options to age independently near their families, young families have more downpayment assistance to buy their first home, and developers are getting the support they need to actually deliver projects that will make a difference. We’re grateful for the Legislature’s strong partnership in this work, and we will continue working every day to make housing more affordable in Massachusetts.”
“Just one year ago, we made a bold commitment to take on the housing shortage with the most ambitious housing package in state history,” said Lieutenant Governor Driscoll. “Today, we’re seeing the results: thousands of homes built, tens of thousands more in the pipeline, and new opportunities for people to live and thrive in the communities they love. This is the Massachusetts way – smart policy, strong partnerships and a shared commitment to making housing more affordable and accessible”
“The housing shortage takes away people's power to choose where they want to live, which is why we’ve acted urgently to implement the Affordable Homes Act, build more housing and give choice back to renters and homebuyers,” said Secretary of Housing and Livable Communities Ed Augustus. “The Healey-Driscoll Administration is using every available tool to make housing more attainable across the state while also preserving and expanding essential protections for Massachusetts residents.”
Increased Production
New programs created by the Affordable Homes Act are already working to increase housing production and are creating new opportunities for development on underutilized land.
The Momentum Fund, a first-in-the-nation revolving fund to support mixed-income housing production, has already invested in nearly 500 mixed-income units, helping three otherwise stalled housing projects in Milton, Boston, and Grafton get off the ground and under construction. Additional financing commitments to support an additional 500 units are expected in the coming months.
In June, the Administration provided funding to convert two vacant office buildings in Boston into nearly 200 new housing units. Building on this progress, the new Commercial Conversion Tax Credit will open for funding applications later this month and is expected to support the creation of up to 200 additional units through the transformation of vacant commercial space into new housing.
Recognizing the potential for housing development on underutilized state-owned land, the Healey-Driscoll Administration launched the State Land for Homes Initiative this summer, unlocking the potential for over 3,500 new housing units across 450 acres. The administration expects to make 17 additional sites available to developers in the next year, including issuing Requests for Proposals for 10 sites and holding an auction for an additional seven sites in September.
Relief for Residents
The Healey-Driscoll Administration is also delivering immediate relief for Massachusetts residents amidst the housing shortage.
Before the Healey-Driscoll housing agenda, homeowners in Massachusetts had to navigate a patchwork of complex permitting rules to build an accessory dwelling unit (ADU) on their own property, homebuyers could be pressured to relinquish their right to a home inspection and pay for unexpected repairs or maintenance, and renters were forced to pay expensive broker fees before signing a lease, even if they didn’t hire a broker.
Now, over 500 ADUs have been approved by local authorities thanks to statewide simplification of the permitting process, homebuyers have a clear right to a home inspection and cannot be pushed to ignore potential issues or unexpected expenses as they make a major financial decision, and renters cannot be charged a broker fee if they did not hire the broker, saving them money and reducing upfront costs when moving.
Implementation Update
The Affordable Homes Act represents the largest ever state investment in housing production and includes 50 policy initiatives, regulatory changes and reforms to speed up housing production in Massachusetts. In only one year, nearly 80 percent of the law’s provisions have been implemented, and full implementation is expected by the end of the 2025.
Since taking office, the Healey-Driscoll Administration has increased capital funding for housing by 78 percent, and by the end of FY2027, this increase will rise to 91 percent. The FY2026-FY2030 Capital Investment Plan funds programs authorized in the Affordable Homes Act and includes: $622 million for HousingWorks, $334 million for the Affordable Housing Trust Fund, $657 million for Public Housing investments, $50 million for the Momentum Fund, and $90 million to support several capital programs formerly supported by federal relief funds, including the Middle Income Housing Fund, the CommonWealth Builder Fund, and the ONE+ Mortgage and MassDREAMS programs.
The work of the three commissions and one council created by the law are underway. The Senior Housing, Extremely Low-Income and Accessible Housing Commissions, and the Seasonal Communities Advisory Council, are all due to report their findings by the end of this year.
Finally, the state’s first Office of Fair Housing is now open, with $1 million for the Fair Housing Trust Fund to support this critical work. The Office will begin a series of regional listening sessions later this year.
