Tom Finneran – ‘Incredible problem’

House Speaker Thomas M. Finneran told homebuilders last week something many of them have known for some time – the barriers to housing production in the Bay State are “major impediments” to the state’s future economic well-being.

“Housing is an incredible problem in Massachusetts,” Finneran told homebuilders who were gathered for the annual Installation and Awards Banquet of the Home Builders Association of Massachusetts at Union Station in Worcester.

Finneran’s speech came a day before the House of Representatives started debating a housing package that the speaker and other lawmakers put together.

The package includes a $508 million housing bond bill that was unanimously approved by the House last Wednesday. The bill still must go before the Senate for consideration.

Finneran’s proposal also includes local and state tax incentives for developers to construct affordable housing and improvements to Chapter 40B, the state anti-snob zoning laws.

House leaders are expected to continue the housing debate today.

Finneran’s plan has been praised by housing advocates and builders who say it is one of the most comprehensive housing bills the state has seen in years.

It was also heralded at last week’s HBAM banquet by lawmakers and builders who said Finneran has kept his promise to focus on affordable housing.

Finneran’s remarks were echoed in a report released by the Massachusetts Housing Partnership Fund the same day as the HBAM celebration.

The MHP report concludes that high housing prices in the state are a direct result of local barriers to new housing construction.

According to the MHP study, housing is being built at a rate 42 percent lower than necessary to house the state’s residents and keep up with new demand.

Construction costs in the Bay State are also a major hurdle for developers. Massachusetts has the second highest construction costs in the country, according to the report, and building costs are 15 percent higher than the national average.

Single-family home prices in the Bay State were 48 percent higher than the national average last year, MHP reports.

Finneran and other lawmakers hope to reverse the trend.

The Finneran package could lead to the construction of thousands of affordable homes or the renovation of housing units throughout the state, say housing advocates. In addition, communities would get help to comply with anti-snob zoning laws while at the same time communities that don’t meet state-set affordable housing thresholds would be penalized.

‘Byzantine’ Barriers
In a speech reminiscent of his annual address given in February, Finneran, D-Mattapan, last week outlined the major issues confronting the state: education, health care, the energy crisis and housing.

The barriers that exist on the state and local level for housing production make it a “Byzantine challenge” for developers to navigate through the whole process to create any type of housing, he said.

According to Finneran, the state must focus on three goals: producing housing units for people of all incomes, protecting Chapter 40B and stopping the “artificial application” of Title 5 septic system requirements that have created barriers to housing production in some communities.

Homebuilders across the state have been pushing to create a uniform Title 5 code for all communities to follow. Currently, communities may pass more stringent regulations but homebuilders feel those requirements often become a great economic barrier for developers who want to build homes.

HBAM supports a bill that would force communities to file an application with the Department of Environmental Protection, supported by engineering and scientific data, if they wish to pass stricter septic system rules.

“It is important that housing production not be blocked in an artificial manner,” Finneran said.

To illustrate the critical need for additional affordable housing, Finneran said it would be tough to convince the chief executive officer of a company to open a business in Massachusetts because housing would be unaffordable for employees.

Even though the state has made progress in many areas, the “least progress” has been made in housing, Finneran said.

“It is a huge obstacle for us to overcome,” he said.

Sen. Stephen M. Brewer, D-Barre, who also spoke at the homebuilders’ banquet, commended Finneran for his efforts.

“We in government have a solid mission to provide housing for all,” Brewer said.

The banquet also marked a changing of the guard for HBAM. Leonard Gengel, a Rutland-based builder and member of the Builders Association of Central Massachusetts, was installed as HBAM’s new president. Gengel replaces Francis “Ed” Mogan Jr. of Centerville.

Several builders were also honored for their work, including Joseph J. Farrell of the Builders Association of Central Massachusetts.

Farrell, who has constructed homes in Shrewsbury, received the Donald Van Greenby Builder of the Year Award.