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Massachusetts awards largest housing funding round in over a decade

Massachusetts awards largest housing funding round in over a decade

Money Moves Boston, MA local

$278M to 29 projects in 20 communities under 2024 Affordable Homes Act

3 days ago: Massachusetts awards $278M to 29 housing projects

Overview

Updated 1 hour ago

Massachusetts Gov. Maura Healey announced the state's largest housing funding round in over a decade: $278 million for 29 projects across 20 communities. The awards draw on the 2024 Affordable Homes Act, which expanded state subsidies and tax credits for housing.

If all projects are financed and built, they would add 970 new homes, preserve 1,182 affordable units, and redevelop 310 public housing units. That's a small fraction of the roughly 200,000 homes planners say the state needs by 2030, but it's the first major test of whether the Healey administration's housing push can deliver at scale.

Why it matters

Massachusetts faces a severe housing shortage; this funding round tests whether the 2024 Affordable Homes Act can actually deliver new supply.

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Key Indicators

$278M
Total public funding awarded
Largest single housing funding round in Massachusetts in over a decade
29
Projects funded
Across 20 Massachusetts communities
970
New homes planned
If all projects are fully financed and built
1,182
Affordable units preserved
Existing affordable housing getting rehabilitation
310
Public housing units redeveloped
Aging public housing stock being rebuilt

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People Involved

Organizations Involved

Timeline

2023 September 2026

4 events Latest: 3 days ago
Tap a bar to jump to that date
  1. Massachusetts awards $278M to 29 housing projects

    Latest Funding

    Healey announces largest single housing funding round in over a decade, across 20 communities.

  2. Governor signs Affordable Homes Act

    Legislation

    Healey signs bill authorizing billions in new housing spending and zoning reforms.

  3. Trinity Financial wins approval for 150 Centre St.

    Approval

    Boston developer receives approval for 72-unit project near Shawmut MBTA station.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

1969-present

Massachusetts Chapter 40B (1969-present)

Massachusetts passed Chapter 40B in 1969, allowing affordable housing developers to bypass local zoning when a town has less than 10% affordable housing. It was the first state law of its kind in the nation.

Then

The law enabled construction of affordable housing in suburban communities that had used zoning to exclude it.

Now

Chapter 40B remains controversial but has produced tens of thousands of units and set a precedent for state intervention in local housing decisions.

Why this matters now

The Affordable Homes Act, which funds this round, extends that precedent through zoning reforms and the MBTA Communities law requiring housing near transit stations.

1986-present

Low-Income Housing Tax Credit (1986-present)

Congress created the Low-Income Housing Tax Credit in the 1986 Tax Reform Act, giving developers federal tax credits to build or preserve affordable rental housing. It has become the primary federal financing tool for affordable housing.

Then

States now allocate the credits through competitive processes like the one Massachusetts just completed.

Now

The LIHTC has produced millions of affordable homes nationally since its creation.

Why this matters now

This round's $61.8 million in state LIHTC and $61.1 million in federal LIHTC shows the credit mechanism remains central to housing deals 40 years after its creation.

1992-2010

HOPE VI Program (1992-2010)

The U.S. Department of Housing and Urban Development launched HOPE VI in 1992, demolishing distressed public housing projects and rebuilding them as mixed-income communities. It was the first large-scale program to use private finance to redevelop public housing.

Then

The program redeveloped hundreds of public housing sites across the country, including several in Boston.

Now

HOPE VI's mixed results, including displacement of original residents and a net loss of public housing units, shaped later policy debates about housing redevelopment.

Why this matters now

Massachusetts is using the same model for its 310 public housing units in this round: rebuilding aging public housing with mixed public-private financing.

Sources

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