A drone photo of Springfield’s Forest Park neighborhood. A blue-ribbon commission appointed by Gov. Maura Healey has suggested allowing up to four units on residential lots statewide that have existing sewer and water connections, among other recommendations. iStock photo

Massachusetts should allow two-family construction and eliminate minimum parking requirements for residential construction, according to a panel advising the Healey administration on housing policy.

The Unlocking Housing Production Commission report was issued Feb. 21 by a 16-member panel appointed by Gov. Maura Healey in 2024 to recommend ways to increase housing production. Many of the recommendations would require the state Legislature’s approval and additional funding and will likely be controversial.

The administration estimates that 222,000 new housing units are needed by 2035 to rein in spiraling housing costs and meet the state’s economic development goals.

The commission called for statewide reforms challenging Massachusetts’ long history of local control over zoning decisions, including widespread prohibitions on multifamily development. The administration describes the report as a list of suggestions that the governor could pick from.

“Turning them into real-world solutions will require bold action and partnership between the public and private sectors, local officials and state legislators, businesses and residents. We hope leaders, policymakers, and community members will support this effort and help turn these ideas – and others – into action,” commission member Levi Reilly, head of development at Marcus Partners, said in a statement released with the report.

Other Recommendations

• Strengthen Chapter 40B: The state’s affordable housing zoning law should be streamlined to cut the timeline in which developers’ appeals of local boards’ denials are heard the Housing Appeals Committee, by expanding the committee’s staff. Currently, developers’ appeals can take several years to be decided by the panel.
• Money for infrastructure: Lack of sewer service in rural areas inhibits high-density housing development. State subsidies for private water and sewage treatment systems, and a program enabling developers to connect extensions to existing sewer systems, could stimulate production.
• Modular construction: The report also addressed financial challenges to housing starts driven by high construction costs and interest rates. It encourages modular housing construction through building code changes.
• Elimination of Minimum Lot Sizes: Large minimum lot sizes are a barrier to housing production in many suburbs. Minimum lot sizes should be eliminated statewide, except in environmentally sensitive areas, subject to building, health and safety regulations, the panel recommended.
• Building Code Reforms: Outdated building codes currently restrict multifamily development and should be updated to reflect modern construction techniques and costs. Massachusetts building codes currently trigger more costly standards when projects exceed 50 percent of the building’s value, making some projects infeasible. A new separate building code for residential renovation projects should replace the “all-or-nothing” 50-percent threshold. And the state building code should be updated to allow up to 24 units and 6-story buildings with single stairways. The current code limits single-staircase buildings to 12 units and 3 stories.

‘Some Third Rails’

The report calls for statewide legislation that would legalize two-family construction statewide, and four-family construction on lots that have water and sewer service.

“Governor Healey, myself – along with [Housing Secretary Ed] Augustus and his team – are still reviewing all the recommendations. And there are some third-rail things in there,” Lt Gov. Kim Driscoll told an audience at an event organized by trade group NAIOP-MA to discuss the report on Feb. 25. “I think that’s good. Like, we don’t want to be limited, because we can’t afford to be.”

The city of Cambridge this month approved construction of 4- to 6-story residential buildings across the city, effectively ending single-family zoning as a strategy to attack high housing prices.

Expanding on the intentions of the MBTA Communities law, which requires multifamily zoning near MBTA service, the report said all 369 communities in Massachusetts should be required to create multifamily zoning districts. Unlike the MBTA Communities law, it doesn’t specify minimum district sizes or production goals.

The report also spotlights off-street parking requirements as a major impediment to housing development. Off-street parking requirements can cost tens of thousands of dollars per space, the report states, driving up housing costs and making projects harder to finance.

A recent MAPC study determined that most suburban communities have excessive parking requirements compared to how much parking is actually used in new developments. In December, the Somerville City Council eliminated off-street parking requirements for residential projects. In 2021, Boston dropped minimum parking requirements for 100 percent affordable projects.

But even highly urban, transit-connected communities still have high parking requirements, which the MAPC estimates costs $15,000 per space for surface parking, $40,000 per space for above-ground structured parking – as in a covered garage on a building’s first floor – and $80,000 per space for underground parking. A 120-unit building recently proposed in Chelsea at the intersection of three high-frequency bus lines must seek a variance from local rules that would require it to provide 221 parking spots instead of the 50 its developer estimates tenants will need.

To offset the impacts, communities would be required to set up policies encouraging alternative transportation such as carpooling, public transit and bicycle infrastructure.

Admin. Eyes Further Reforms

At the Feb. 25 NAIOP event, Driscoll and Augustus made it clear the Healey administration plans to make additional housing reforms, whether in the form of new legislation or administrative or regulatory changes.

“The Affordable Homes Act is not a one-and-done. It is going to need this constant attention,” Driscoll told the hundred-plus attendees. “Our hope with this report is, we can start to unpack those things that can move the needle that can lead to getting things done.”

“Further conversations” with different stakeholders are needed, Driscoll said.

In a brief interview after the event, Augustus did not commit to a timeline for any new legislative proposals. The state Legislature just started a new two-year session, giving Healey time to craft and push through a new package of reforms before the 2026 election.

Steve Adams

While the most impactful changes, like overriding local zoning or parking rules, will need buy-in from other parts of Beacon Hill, the governor could implement smaller ideas on her own.

When moderator and NAIOP-MA CEO Tamara Small asked Driscoll and Augustus about what report recommendations felt like “next up for implementation,” both picked ideas that won’t need to wait on the state House of Representatives or the state Senate.

Augustus singled out the idea of a “State Planning Office” that could shepherd a process to create and maintain long-term vision for land use across the state that reconciled transportation, environmental, economic development and housing goals.

James Sanna

Driscoll picked the idea of setting up a division of Augustus’ agency to tackle barriers to expanding modular housing construction and ride herd over efforts to cut the red tape that currently hobbles the industry.

When the administration unveils its next reform package, all eyes will be on how aggressive it is. The MBTA Communities zoning reform engendered significant pushback from a minority of towns, and many more adopted so-called “paper compliance” districts that sought to prevent as much housing development as possible while staying within the letter of the law.

Driscoll said the administration plans to try to find new ways it could incentivize towns and cities to do their part in building more homes, but suggested it wouldn’t necessarily shy from tough fights.

“We’re going to have to break some eggs if we’re serious about tackling this housing crisis,” Driscoll said. “It’s just, where is the juice going to be worth the squeeze?”