ACTION ALERT! Contact Your State Senator Today to Help Pass the Housing Bond Bill!
Tomorrow, March 29th, the Massachusetts Senate will vote on the Housing Bond Bill, S.2368 An Act Financing the Production and Preservation of Housing for Low and Moderate Income Residents!
This bill authorizes $1.8 billion in investments for affordable housing through the capital budget over the next five years. It provides critical funding to produce, preserve, and modernize public and affordable housing in communities across the Commonwealth. The programs funded by the bond bill provide for a variety of housing types, including homeownership and rental; public housing; transit-oriented development; housing for families, seniors, and persons with disabilities; supportive housing; and housing for people experiencing homelessness. The bill also expands the state Low Income Housing Tax Credit to $25 million per year and expands the Massachusetts Historic Rehabilitation tax credit to $55 million per year. For an updated fact sheet on the bill, please click here.
Extension & Expansion the Massachusetts Low Income Housing Tax Credit (LIHTC)
LIHTC is a critical tool for affordable housing development in Massachusetts and an economic engine that helps create jobs.
The bond bill expands the state LIHTC to $25 million per year and extends this authorization to 2025 with $5 million for dedicated to affordable housing preservation. Without an extension and expansion, the state LIHTC will sunset to $10 million in 2020. The state LIHTC is a vital tool for affordable housing production and preservation. Funding the state LIHTC at $25 million reduces the loss of equity due to federal tax reform, while leveraging resources for the production and preservation of nearly 4,000 units of affordable housing annually.
Additions to the Housing Bond Bill:
The latest version of the bill as reported out by Senate Ways and Means Committee adds the following two items:
- $100 million for MassHousing’s Workforce Housing Initiative
The initiative:
- Targets individuals and families with incomes of 61% to 120% of Area Median Income (AMI)
- Provides up to $100,000 of subsidy per workforce housing unit to create 1,000 new units of workforce housing statewide
- Leverages strategic opportunities to use state-owned land
- Ensures workforce housing units are deed restricted for 30 years.
- Massachusetts Historic Rehabilitation Tax Credits
The Housing Bond Bill increases the annual authorization for the state Historic Tax Credit from $50 million to $55 million. The state Historic Tax Credit attracts developers to invest in once vacant, deteriorated, and underutilized structures, such as old mills, schools, and hospitals, and transforms them into much needed housing and commercial space. The Massachusetts Historic Tax Credit has been used to revitalize many of the Commonwealth’s communities, including Gateway Cities.
Please call your Senator and ask them to vote for the Housing Bond Bill. Click here to find the contact information for your State Senator.
Thank you for your continued advocacy as we work to get this bill passed and make a safe, healthy, and affordable home a reality for everyone in the Commonwealth!
If you have any questions, please contact Abhidnya Kurve at akurve@chapa.org or (617) 742-0820 x113.