Massachusetts: $140M Invested in 1,000+ Affordable Homes & Commercial Conversions
- BOSTON, Massachusetts – The state of Massachusetts is investing over $140 million in new housing initiatives, aiming to address a persistent affordability crisis and revitalize underutilized commercial spaces...
- Governor Maura Healey framed the investment as a critical step in tackling the state’s housing shortage.
- The $140 million investment builds on the $5.2 billion housing bond bill signed by Governor Healey in 2024, a landmark piece of legislation known as the Affordable Homes...
BOSTON, Massachusetts – The state of Massachusetts is investing over $140 million in new housing initiatives, aiming to address a persistent affordability crisis and revitalize underutilized commercial spaces across the Commonwealth. The funding, announced on Wednesday , will support the creation of over a thousand homes through two key programs: the Commercial Conversion Tax Credit Initiative and the Affordable Housing Development grant program.
Governor Maura Healey framed the investment as a critical step in tackling the state’s housing shortage. “Too many downtown buildings across Massachusetts are sitting dark and empty when they could be part of the solution,” she said. “The Affordable Homes Act gave us new tools to move faster and smarter, and this first round of Commercial Conversion tax credits will help turn underused commercial properties into homes, bring new energy to our downtowns and lower housing costs for residents.”
The $140 million investment builds on the $5.2 billion housing bond bill signed by Governor Healey in 2024, a landmark piece of legislation known as the Affordable Homes Act. The Act, described as the most ambitious in state history, authorizes significant funding and implements 49 policy initiatives designed to increase housing availability and affordability.
Commercial Conversions: Revitalizing Downtowns
The Commercial Conversion Tax Credit Initiative will distribute $8.4 million to five projects across Massachusetts, resulting in the creation of 339 new homes. These projects are strategically located in “downtowns and neighborhood centers” where vacant commercial buildings can be repurposed to address housing needs and stimulate local economies. The initiative aims to inject foot traffic and support local businesses by increasing residential density in these areas.
Among the projects slated to receive funding is a development in Boston’s Financial District, which will deliver 18 new housing units on Milk Street. The largest project, located in Worcester, will transform a historic office building into 198 homes. Other projects are planned for Fitchburg, New Bedford, and Pittsfield.
Lieutenant Governor Kim Driscoll highlighted the potential for these conversions to spark a “downtown comeback.” “Creating housing in these central areas supports local businesses, strengthens neighborhoods and helps more people live closer to jobs, transit and everyday amenities,” she stated.
Affordable Housing Development Grants: Targeting Low-Income Residents
In addition to the commercial conversion initiative, $139.5 million will be allocated through the Affordable Housing Development grant program. This funding will provide low-income housing tax credits and subsidies to 15 rental housing developments across the state, creating a total of 903 affordable homes. Crucially, 284 of these homes will be designated for “extremely low-income households,” including individuals and families experiencing homelessness.
The developments are spread across a wide geographic area, including Beverly, Easthampton, Framingham, Greenfield, Lawrence, Lenox, Lowell, New Bedford, Newton, Pittsfield, Westford, and four developments within Boston, which will collectively deliver 271 homes.
According to Executive Office of Housing and Livable Communities Secretary Ed Augustus, these projects will collectively “move 1,008 homes forward statewide, delivering the homes seniors, families and workers need to stay in the communities they call home.”
Local Impact and Long-Term Vision
The state’s investment is already garnering positive reactions from local leaders. Pittsfield Mayor Peter Marchetti emphasized that the funding supports the city’s “long-term vision for housing as we continue to provide options that serve every need.” This sentiment reflects a broader recognition that addressing the housing crisis requires a multifaceted approach, encompassing both the creation of new affordable units and the revitalization of existing urban centers.
The Affordable Homes Act, which underpins these initiatives, was passed in and received unanimous support in the Senate after being referred to the committee on Housing in October 2023. A joint hearing was held in January 2024, and the bill underwent several revisions before ultimately being signed into law by Governor Healey in August 2024. The legislative process, as documented by the Massachusetts Legislature, involved multiple extensions of reporting dates and amendments before final passage.
The current investment represents the first round of awards under the Commercial Conversion Tax Credit Initiative, signaling a sustained commitment from the Healey administration to address the state’s housing challenges. The long-term impact of these initiatives will depend on their ability to not only increase housing supply but also to create vibrant, inclusive communities where residents can thrive.