Senate President Karen Spilka speaks to reporters in this May 12, 2023 file photo, joined by Senate Ways and Means Chairman Michael Rodrigues. Photo by Sam Doran | State House News Service
Senate Democrats seek to authorize more than $5 billion in borrowing to spur housing production in a bill that would make a number of policy changes to Massachusetts’ housing laws, but leaves the much-discussed proposal to allow communities to tax high-value real estate transactions to pay for affordable housing on the cutting room floor.
The Senate Ways and Means Committee polled the housing bond bill Monday morning, teeing it up for debate Thursday. The large bill, which the governor originally filed in October, is meant to address what many lawmakers have identified as the number one issue facing Massachusetts – a crisis of low housing stock and unaffordable options.
The Senate bill authorizes $5.1 billion in long-term capital spending on housing, but the state is currently limited to about $400 million a year in capital spending on housing under its latest five-year capital budget. Bond authorizations only create a menu of spending options for officials to choose from in the future, and does not usually mean the state will spend the full amount.
The bill adopts a number of proposals Gov. Maura Healey recommended in her own bill, including: allowing tenants to seal previous eviction records in certain cases, creating a new designation to address housing availability in “seasonal communities,” and allowing a simple majority voting threshold for inclusionary zoning ordinances and bylaws at the local level, up to 13 percent of affordable units.
It notably leaves out a proposal to allow for real estate transfer taxes. More than a dozen communities have sought authorization from Beacon Hill to tax the sale of expensive properties within their borders to help pay for affordable housing.
The House also left this policy out of their bill, meaning it is likely dead for this session though any senator could propose to add it through an amendment.
The Senate bill also excluded the $1 billion bond authorization to expand the Massachusetts Water Resource Authority’s service area to the suburbs south of Boston, which was a priority of House Speaker Ron Mariano.
One policy change seems on its way to the governor’s desk, with support from the House earlier this month and the backing of Senate Democrats. The Senate Ways and Means Committee proposed allowing for accessory dwelling units, or ADUs, by right in single-family zoning across the state. The administration previously estimated this could create 10,000 new housing units across Massachusetts.
