Legislature Expected to Double Funding for State Housing Tax Credit Program in Supplemental Budget - October 5, 2011

Statement of Aaron Gornstein, Executive Director, Citizens’ Housing and Planning Association (CHAPA) on the Massachusetts Legislature’s Expected Action to Increase Tax Credit Investment for Affordable Housing

October 5, 2011

Today, the Massachusetts House is expected to vote to raise the cap on State Low Income Housing Tax Credits, a tax incentive that promotes private investment in the creation and rehabilitation of affordable housing.  The State Senate is expected to take the same action tomorrow.  Citizens’ Housing and Planning Association (CHAPA) applauds the Legislature for taking this critical step to support affordable housing, and create jobs.

This action demonstrates the Legislature’s ability to capitalize on timely opportunities to make housing more affordable. 

In May, 2011, local housing authorities in Boston and Taunton won $22 million HopeVI public housing redevelopment awards from the U.S. Department of Housing and Urban Development.  Massachusetts earned two out of the eight nationwide awards.  This created a tremendous opportunity to revitalize neighborhoods in South Boston and Taunton, but the Commonwealth is required to invest a significant state match or return the funding. 

Without the increase in housing tax credit investment, the Commonwealth would have been forced to choose between funding these two critical public housing redevelopments and advancing investment in other shovel-ready affordable housing developments that have already been locally-approved.  Dozens of developers are seeking investment – both public and private - to help address the Commonwealth’s affordable housing crisis by converting blighted mills, abandoned lots, and underutilized land into affordable housing.  These worthy developments would have had to compete for the same resources as the Taunton and South Boston public housing redevelopment opportunities. 

Instead, the Legislature approved $20 million in additional housing tax credits over the next two years to boost private investment and allow an estimated 25 developments, 1,200 units of housing and 1,225 jobs to advance in addition to the two federally-chosen redevelopment projects.

The action taken today will lead to job-producing affordable housing developments that create affordable living options for working families, seniors, veterans, and persons with disabilities across the Commonwealth.  

Housing Committee Co-Chair Representative Kevin Honan (D-Brighton) and Senate Majority Leader Frederick Berry (D-Peabody) led the effort, in close collaboration with Speaker of the House Robert DeLeo (D-Winthrop), Senate President Therese Murray (D-Plymouth), Chairman Brian Dempsey (D-Haverhill), Chairman Stephen Brewer (D-Barre), House Speaker Pro Tempore Pat Haddad (D-Somerset), Senate Majority Whip Jack Hart (D-South Boston), Housing Committee Co-Chair Senator James Eldridge (D-Acton), the Patrick-Murray Administration, and many others.  We commend these leaders and thank the entire General Court for supporting this critical opportunity.

For more information, please contact Aaron Gornstein at 617-742-0820 or Sean Caron, CHAPA Director of Public Policy, at the same number