Bill > S989

This bill establishes the Starter Home Development Fund, a new program designed to create affordable housing for middle-income households in Massachusetts. The fund, administered by the Massachusetts Housing Finance Agency (MHFA) in conjunction with the Department of Housing and Community Development, will provide subsidies for new construction, acquisition, and substantial rehabilitation of starter homes for households earning between 80% and 120% of area median income. The fund will be a non-appropriated, expendable trust fund that can receive revenue from various sources including appropriations, gifts, grants, and investment income. Subsidies can cover up to 35% of eligible development costs, with financial support available to both developers and homebuyers, and mechanisms to ensure long-term affordability such as housing subsidy covenants that can preserve home affordability for up to 99 years. An advisory committee comprising representatives from housing, economic development, municipal, and nonprofit organizations will provide policy recommendations. The bill prioritizes projects in starter home zoning districts and those addressing historical housing inequities in communities of color. The MHFA will be required to provide an annual report detailing fund expenditures, including fund recipients, administrative costs, and the number of housing units affected by the program.

Housing and Urban Affairs

https://malegislature.gov/Bills/194/S989