Dawn Ruffini

As we near the end of the year, it’s important to take a hard look at progress, shortcomings and opportunities that lay ahead. We made some incredible strides in housing in Massachusetts in 2022. Most notably, the state committed to drastically increase funding for housing assistance programs, roughly doubling the residential assistance for families in transition (RAFT) program to $150 million in the fiscal year 2023 budget and increasing funding for shelter and voucher programs by over $100 million.  

We also saw coalitions grow to support key bills. The first-time homebuyer savings accounts bill (H.2840), a tool for those looking to access the benefits of homeownership received a favorable committee report, as did a bill making it easier to remove restrictive covenants from property documents (H.1465). Meanwhile, new bills requiring real estate licensee fair housing education (H.333) and protecting those inheriting property through intestacy (H.1559) received robust introductions and immediate legislative interest. 

However, many pro-housing policies remain in limbo in the wake of the state legislature’s stalled economic development bill (H.5034).  

Starter Homes, ADUs, Housing Aid in Limbo 

Both the House and Senate versions included starter home district zoning changes, so it would have been in the final bill in some form. Starter home districts permit smaller homes on smaller lots, a form of housing the state desperately needs to better serve first-time homebuyers, seniors, and the workforce. Unfortunately, while this zoning type is best suited for suburban and rural areas, its current statutory home in the smart-growth law, which is best suited for more densely populated town centers and urban areas, stifled its usage. The bill would shift its statutory placement into a standalone law to unlock new housing development.  

The Senate version of the bill included a provision legalizing accessory dwelling units statewide, but the House version did not, leaving the reform up for debate in conference. It would prohibit any city or town from banning accessory dwelling units, another housing option the state desperately needs. ADU’s, also known as in-law apartments, give homeowners the opportunity to create additional housing units in their home. They are ideal for seniors who want to age in place, homeowners who want to generate additional income, or anyone who wants greater access to some of Massachusetts most desirable communities that have zoned-out all multifamily development in favor of large single-family homes.  

Though funding differed significantly between the House ($175 million) and Senate ($400 million) versions of the economic development bill, both provided important investments in housing development and assistance programs. One key program caught up in the bill is the Housing Development Incentive Program (HDIP). The Senate bill increased the annual cap on HDIP to $57 million for fiscal 2023 and $30 million each year thereafter. Such funding could unlock thousands of new units in Gateway Cities. 

While the fate of these provisions remains unclear for 2022, should they fail to reach enactment, advocacy on the issues will continue. 

2023 Brings Opportunity 

A new two-year legislative session is starting in 2023 and with elections rapidly approaching, changes will be coming. In addition to a new governor, several legislative seats are open, bringing in new people and ideas. While change always brings risk, in the case of housing we’re optimistic that it will bring opportunity.  

Housing is a top issue for many candidates. Governor and lieutenant governor tickets from both parties have spoken at length about the issue. Democratic nominees Maura Healey and Kim Driscoll have already released a housing plan that includes establishing a secretary of housing position to lead housing growth and both have a strong track record on housing issues. Healey has vast experience with fair housing issues from her time as attorney general and Driscoll worked to implement several housing innovations in Salem including ordinances promoting the creation and use of accessory dwelling units and enabling the redevelopment of vacant church and school buildings as affordable housing. 

Next year will also bring important next steps for the MBTA Communities zoning reform law, which requires communities that don’t already have them to create zoning districts of slightly increased density around MBTA stations.  

Jan. 31 is the first deadline for communities following an exhaustive regulatory process that made substantive revisions to the program to address municipal concerns. Action plans explaining local processes for adopting compliant zoning are due that day to maintain municipal eligibility for MassWorks and Housing Choice grants as well as the Local Capital Projects Fund. Implementation of this law provides the state with an incredible opportunity to embrace the type of smart growth that can help improve our cities and towns, making them into more vibrant, inclusive, and affordable communities. 

As we enter 2023, Massachusetts is poised to begin a new era of housing policy. After decades of underdevelopment and NIMBYism resulting in a full-blown crisis, we’ve begun to turn a corner. The Housing Choice and MBTA Communities laws are starting to have an effect. Funding to help those most in need or facing unforeseen challenges are reflected in budgetary increases.  

We’re still far from perfect and there’s a lot of work left to do so that our communities can be a welcoming place for everyone who wants to live in them, but we’re moving in the right direction. 

Dawn Ruffini is the 2022 president of the Massachusetts Association of Realtors and a broker-owner of RE/MAX Connections.