Press Release  One Year After Signing Affordable Homes Act, Nearly 100,000 New Housing Units Under Development to Lower Costs in Massachusetts

Boston — One year after Governor Maura Healey signed the Affordable Homes Act (AHA) into law, the Healey-Driscoll Administration’s housing agenda is delivering results to increase the production of reasonably-priced housing and lower costs across the state. A new digital thermometer released by the administration today shows that since Governor Healey took office, more than 90,000 new housing units have been completed or are set to enter development. 

Governor Healey signed the Affordable Homes Act, the state’s most ambitious investment in housing in history, into law on August 6, 2024. This historic law – combined with the administration’s other initiatives such as converting vacant state-owned land into housing, commercial to housing conversions, increased housing development tax credits under Governor Healey’s tax cuts package, and the MBTA Communities Law – are already delivering results for the people of Massachusetts.  

“Our administration is delivering on building more reasonably-priced housing,” said Governor Healey. “Because of the Affordable Homes Act and other initiatives, seniors now have more options to age independently near their families, young families have more downpayment assistance to buy their first home, and developers are getting the support they need to actually deliver projects that will make a difference. We’re grateful for the Legislature’s strong partnership in this work, and we will continue working every day to make housing more affordable in Massachusetts.” 

“Just one year ago, we made a bold commitment to take on the housing shortage with the most ambitious housing package in state history,” said Lieutenant Governor Driscoll. “Today, we’re seeing the results: thousands of homes built, tens of thousands more in the pipeline, and new opportunities for people to live and thrive in the communities they love. This is the Massachusetts way – smart policy, strong partnerships and a shared commitment to making housing more affordable and accessible” 

“The housing shortage takes away people's power to choose where they want to live, which is why we’ve acted urgently to implement the Affordable Homes Act, build more housing and give choice back to renters and homebuyers,” said Secretary of Housing and Livable Communities Ed Augustus. “The Healey-Driscoll Administration is using every available tool to make housing more attainable across the state while also preserving and expanding essential protections for Massachusetts residents.” 

Increased Production 

New programs created by the Affordable Homes Act are already working to increase housing production and are creating new opportunities for development on underutilized land. 

The Momentum Fund, a first-in-the-nation revolving fund to support mixed-income housing production, has already invested in nearly 500 mixed-income units, helping three otherwise stalled housing projects in Milton, Boston, and Grafton get off the ground and under construction. Additional financing commitments to support an additional 500 units are expected in the coming months.  

In June, the Administration provided funding to convert two vacant office buildings in Boston into nearly 200 new housing units. Building on this progress, the new Commercial Conversion Tax Credit will open for funding applications later this month and is expected to support the creation of up to 200 additional units through the transformation of vacant commercial space into new housing. 

Recognizing the potential for housing development on underutilized state-owned land, the Healey-Driscoll Administration launched the State Land for Homes Initiative this summer, unlocking the potential for over 3,500 new housing units across 450 acres. The administration expects to make 17 additional sites available to developers in the next year, including issuing Requests for Proposals for 10 sites and holding an auction for an additional seven sites in September. 

Relief for Residents 
The Healey-Driscoll Administration is also delivering immediate relief for Massachusetts residents amidst the housing shortage.  

Before the Healey-Driscoll housing agenda, homeowners in Massachusetts had to navigate a patchwork of complex permitting rules to build an accessory dwelling unit (ADU) on their own property, homebuyers could be pressured to relinquish their right to a home inspection and pay for unexpected repairs or maintenance, and renters were forced to pay expensive broker fees before signing a lease, even if they didn’t hire a broker. 

Now, over 500 ADUs have been approved by local authorities thanks to statewide simplification of the permitting process, homebuyers have a clear right to a home inspection and cannot be pushed to ignore potential issues or unexpected expenses as they make a major financial decision, and renters cannot be charged a broker fee if they did not hire the broker, saving them money and reducing upfront costs when moving. 

Implementation Update 
The Affordable Homes Act represents the largest ever state investment in housing production and includes 50 policy initiatives, regulatory changes and reforms to speed up housing production in Massachusetts. In only one year, nearly 80 percent of the law’s provisions have been implemented, and full implementation is expected by the end of the 2025. 

Since taking office, the Healey-Driscoll Administration has increased capital funding for housing by 78 percent, and by the end of FY2027, this increase will rise to 91 percent. The FY2026-FY2030 Capital Investment Plan funds programs authorized in the Affordable Homes Act and includes: $622 million for HousingWorks, $334 million for the Affordable Housing Trust Fund, $657 million for Public Housing investments, $50 million for the Momentum Fund, and $90 million to support several capital programs formerly supported by federal relief funds, including the Middle Income Housing Fund, the CommonWealth Builder Fund, and the ONE+ Mortgage and MassDREAMS programs. 

The work of the three commissions and one council created by the law are underway. The Senior Housing, Extremely Low-Income and Accessible Housing Commissions, and the Seasonal Communities Advisory Council, are all due to report their findings by the end of this year. 

Finally, the state’s first Office of Fair Housing is now open, with $1 million for the Fair Housing Trust Fund to support this critical work. The Office will begin a series of regional listening sessions later this year. 

Statements of Support 

Rachel Heller, CEO, Citizens' Housing & Planning Association (CHAPA):
"The passage of the Affordable Homes Act a year ago was much more than a historic housing win; it was a comprehensive investment of $5.1 billion by the Healey Administration in what everyone in Massachusetts needs to thrive. This landmark legislation brought the Commonwealth’s longstanding commitment to affordable housing to new levels, investing in a wide range of housing solutions for people across incomes. From establishing ADUs by-right and state-owned land for development, the first state Office of Fair Housing, a supportive housing pool fund, eviction records sealing, commissions to develop housing strategies for people with extremely low incomes, disabilities, and seniors, and a statewide housing production plan, to resources for homeownership production through CommonWealth Builder, public housing, affordable and mixed-income housing, and more, the Affordable Homes Act has set Massachusetts up for the bright future we want and deserve. With the policies, programs, and resources in the Affordable Homes Act, we are closer to 222,000 new homes by 2035 and creating more of the homes people need." 

Jesse Kanson-Benanav, Executive Director, Abundant Housing Massachusetts: 
“It was a tremendous honor to work alongside Governor Healey’s team and our partners in the legislature to pass the Affordable Homes Act. This historic bill included the most robust Accessory Dwelling Unit law in New England and solidified Massachusetts as a leader in tackling the housing shortage. This single policy will create more housing opportunities for our loved ones with disabilities, aging family members, and essential workers through the Commonwealth. Thank you to the Healey-Driscoll Administration for their commitment to building more homes and adding additional policy tools to our housing toolbox. We are excited to see the positive impacts of this momentous legislation for decades to come.” 

Brooke Thomson, President & CEO, Associated Industries of Massachusetts: 
“Massachusetts employers struggle to retain valued workers because workers struggle to afford homes where they can establish roots and raise families. The historic, $5.16 billion Affordable Homes Act creates meaningful incentives to build more homes across Massachusetts and build them faster. The 3,400 member companies of Associated Industries of Massachusetts believe the Affordable Homes Act will create a commonwealth in which employees who love their jobs will no longer have to leave for other regions of the country where they can buy a decent place to live.” 

Greg Vasil, CEO, Greater Boston Real Estate Board: 
“Addressing the state's housing crisis requires bold solutions that make it easier to build more homes and invest in affordable housing options for our most vulnerable residents. We applaud Governor Healey, as well as Speaker Mariano and Senate President Spilka, for championing the Affordable Homes Act, streamlining Accessory Dwelling Unit (ADU) creation, and creating more homes for low-income residents. We look forward to working with state leaders in the months and years ahead to help Massachusetts overcome the housing crisis, ensuring individuals and families across the Commonwealth have access to affordable, high-quality housing.” 

Tamara Small, CEO, NAIOP Massachusetts: 
“In today’s uncertain climate, the Affordable Homes Act has become even more important. New programs like the Momentum Fund have already supported the development of over 450 mixed-income rental units, while the AHA’s language reforming abutter appeals ensures that there are guardrails for frivolous appeals so that important projects can move forward. The tools created by the AHA are critical to addressing the Commonwealth’s housing crisis, and NAIOP looks forward to continuing our work with the Healey-Driscoll Administration to advance continued successful implementation of the AHA.” 

JD Chesloff, President & CEO, Massachusetts Business Roundtable: 
“Addressing the state’s high cost of living – driven primarily by the high cost of housing – is a top priority for Roundtable members that demands action. In a recent survey of members, 74% indicated housing costs were negatively impacting their ability to recruit and retain talent, with a similar number saying they have had to increase salaries in response. The cost of living is a cost of doing business issue in Massachusetts. This is why the Roundtable supported passage of the Affordable Homes Act a year ago and why applying its many tools is essential to the state’s competitiveness. It was and remains the type of bold action the state needed, and must continue to build upon, to ensure that Massachusetts can recruit, retain, and develop the workforce necessary to fuel our world class economy.”

Donna Brown-Rego, Executive Director, Massachusetts NAHRO:

"The Affordable Homes Act authorized over $2 billion for public housing – a monumental step to achieving our shared goals of ensuring everyone in Massachusetts has a safe and secure home. In just one year, there has already seen an increase for public housing funds in the capital plan as we ramp up to get the Affordable Homes Act money out the door. Our local housing authorities are excited for the increased funding that will immediately be put to use upgrading existing units and adding new units to meet the rising demand. We are ready to work together with the Legislature, Governor Healey, and Secretary Augustus’ team at the Executive Office of Housing and Livable Communities to make this happen."

Charles Homer, Greater Boston Interfaith Organization (GBIO)

"GBIO enthusiastically embraces the Affordable Homes Act's dramatic increase in the bond authorization to address the capital needs of our state's public housing. We are particularly pleased that this increase was followed by the Healy Administration with a nearly $30 million increase in capital funding for public housing in its FY26 capital spending plan that will make a real difference for tenants."

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