Healey outlined her plan on the steps of St. Mary's The Morning Star on Tyler Street.
“Anyone who thinks for a minute that historic preservation and housing access, housing production are opposing forces, just needs to come here and see what's possible," said the governor. "And it's awesome.”
Built in the First Romanesque style in 1942, the church and its attached rectory and convent buildings were converted into 29 market rate units after closing its doors in 2008. The final work was completed in 2021.
“Housing costs are maybe our greatest challenge in the state," said Healey. "It's an issue no matter where I go, certainly here in Northern Berkshire County, but honestly, across the entire state, its housing. And whether you're looking at the vacancy rates, which right now, I think, are among the lowest in the country, our home sales here in Massachusetts, which are at a 13-year low- The vital signs are not very good for where we are in terms of housing here in the state. And population has outpaced what's available in terms of housing.”
To respond to a historic challenge, Healey said the only option was a similarly historic investment – one the Democrat says represents the largest in housing in Massachusetts history.
“That's why this morning, I filed the Affordable Homes Act," she continued. "It's a $4 billion plan to create tens of thousands of new homes. 40,000 new housing starts, the preservation, renovation of an additional 30,000 affordable homes. The goal with this legislation is to make housing more affordable, more available for everyone across the state. It's also going to help us meet our climate goals and empower communities to meet the residents’ needs.”
The bill contains capital authorizations for 18 different housing programs.
“In addition, we are going to be repairing and modernizing 43,000 public housing units, because the state of public housing units in this Commonwealth is just not right," said Healey. "We’ve got to fix that. It's a comprehensive plan, it's a plan designed to work with communities to help communities. Some of the tax credits include the homeowner production tax credit, which is going to create new homeownership opportunities, a community investment tax credit that's going to incentivize donations to CDC and other nonprofits to produce affordable housing.”
The legislation also includes the creation of a statewide housing plan and an Office of Fair Housing.
“We're streamlining production and the building of affordable housing around the state," Healey said. "The local option on transfer fees to find affordable housing, inclusionary zoning by a simple majority, as of right status for accessory dwelling units statewide- super, super important stuff. I also signed three executive orders. One is focused on creating a housing advisory council, because this is work we've got to do with intentionality every day, and a commission to unlock housing production. And finally, a third executive order that focuses on identifying every last bit of surplus public land that we can use for housing in the state.”
“It's important that while we build more, we also build it right. The $275 million for sustainable and green housing initiatives will ensure we're working toward our environmental goals while creating more housing," said Massachusetts Secretary of Housing and Livable Communities Edward Augustus.
He said that the bill was informed by conversations with 120 housing stakeholders, including advocates, developers, and local leaders.
“These investments are spread across numerous programs that are aimed at driving construction of more housing across every level- More housing for low-income families, more housing that is affordable for our workforce who drive our economy, and more housing for middle income families," said Augustus. "$1.6 billion investment in our public housing represents a significant commitment to those on limited incomes, because our public housing residents deserve to live in safe, resilient and energy efficient communities they can be proud of. The $1.83 billion to drive affordability and mixed income housing production and preservation that this bill authorizes will infuse more affordable and middle-income housing into our economy.”
Augustus noted that the bill isn’t just about spending.
“There are 28 policy changes laid out in the Affordable Homes Act," said the secretary. "They'll give communities the tools they need to create more housing where they need it. Importantly, the Affordable Homes Act allows homeowners in every community with the option to build an enlarged apartment or an accessory dwelling unit on their property. It allows cities and towns to levy a modest transfer fee on high value property transactions that the proceeds of which would be dedicated to affordable housing development and preservation in their communities.”
The secretary emphasized how aspects of the $1 billion tax relief package Healey signed into law earlier this year will contribute to the investment in housing – including the Housing Development Incentive Program, which will see its annual program cap increase from $10 million to $57 million in 2023, and $30 million annually moving forward.
“As a former city manager of a Gateway City, I understand how important housing growth is," Augustus said. "In Worcester, we needed both market rate housing and affordable housing to revitalize neighborhoods and provide people with safe, attractive, and affordable places to live. The increase in the funding for the HDIP program included in the $1 billion tax relief package will do this for Gateway Cities like Pittsfield. Adding more housing not only keeps prices under control, it helps drive the local economy and puts more people in our downtown, in neighborhoods, and where they can support small businesses and dining.”
Six developments in Pittsfield have been funded through the program over the last decade, including St. Mary’s itself.
“Additionally, the tax bill included $20 million annual increase to $60 million – historic levels as the governor mentioned – of the state Low Income Housing Tax Credit," Augustus continued. "State LIHTC is the most important state tool available for development of affordable housing, Paired with federal LIHTC and other capital sources, many of which are more robustly funded with the new housing bond bill that was filed today, these increases in investment will create thousands of more affordable housing units across the state and right here in the Berkshires.”
The tax plan has been harshly criticized by organized labor and progressive groups for being too generous to the wealthiest residents and corporations in Massachusetts.
Healey’s Affordable Homes Act now goes to the legislature for consideration.
