What is a Starter Home?
A “starter home” is a smaller single-family home suitable for first-time home buyers, downsizing, smaller households, and people needing a more affordable single-family housing option.
Enacted in 2022 through An Act Relating to Economic Growth and Relief for the Commonwealth (Acts of 2022, Chapter 268), the Starter Home Zoning Districts Act (M.G.L. Chapter 40Y), encourages communities to create starter home districts that reduce barriers to creating smaller, more affordable starter homes.
This law encourages towns and cities to allow starter homes where it makes the most sense for their community.
Why do we need Starter Homes?
Massachusetts faces challenges in producing smaller, more compact, and modestly priced single-family homes.
Chapter 40Y is an important part of our strategy to ensure diverse housing choices for all Massachusetts residents. By promoting the construction of starter homes, we’re making strides towards our goal of abundant housing for everyone in our state.
What is the law?
Chapter 40Y sets up a process for communities to create Starter Home Zoning Districts, where starter homes can be built.
These homes are designed for someone buying their first home, downsizing, or for smaller households. The law sets certain key rules for these homes:
- At least 50% of the homes in a Starter Home Zoning District must have three or more bedrooms,
- At least 10% of the homes must be made affordable for households making up to 110% of the area median income.
- The zoning must allow Starter homes to be built as-of-right, rather than through special permits.
- Starter homes can be up to 1,850 square feet in heated living space.
- Starter Home Zoning Districts must allow at least 4 starter homes per acre.
Chapter 40Y allows communities to decide where to establish these districts and encourages builders to use sustainable practices.
How can communities create Starter Home Zoning Districts?
Under Chapter 40Y, towns and cities can choose to create special areas, called Starter Home Zoning Districts, where they can build starter homes. This is a local decision.
The community first drafts a Starter Home Zoning District that meets the requirements of M.G.L. Chapter 40Y and the 40Y Regulations. The draft zoning bylaw is then submitted to EOHLC for approval. Once approved by EOHLC, the community is then free to adopt the Start Home Zoning District. Massachusetts offers incentives and technical assistance for towns and cities to create these districts.
The community is entitled to a one-time zoning incentive payment upon adoption of a compliant Starter Home Zoning District. They are also entitled to a second payment for each new housing unit built.
40Y Regulation
40Y draft regulations and information related to any comment period will be published as regulation is promulgated through the regulatory development process.