Massachusetts announces $18M tax credits for housing development across gateway cities

In a significant move to address the housing crisis in Massachusetts, Governor Healey announced the allocation of $18 million in tax credits aimed at facilitating new housing developments across the state. This funding is part of the Housing Development Incentive Program (HDIP), which has already seen a remarkable $57 million awarded this fiscal year, resulting in nearly 1,300 new homes entering production—a staggering 600% increase compared to previous records.

During a visit to Fitchburg, where the impact of these initiatives is already visible, Governor Healey highlighted the vibrancy being added to the city’s Main Street through ongoing and completed housing projects. The new funding will support developments in various cities, including Holyoke, Salem, Lowell, Worcester, and Hyannis, further expanding housing opportunities in gateway cities.

The governor emphasized the importance of these investments, noting that they are part of a broader strategy to tackle housing affordability, which remains a pressing challenge for Massachusetts residents. As part of this strategy, the state has permanently tripled the cap on HDIP, doubled the senior tax credit for housing, and increased the low-income housing tax credit by 50%. These measures are designed to accelerate housing production and ensure that more residents have access to affordable homes.

Additionally, the state has released its first comprehensive housing plan, which serves as a roadmap for meeting the diverse housing needs across regions. This includes an inventory of state-owned land that can be utilized for new housing projects. The MBTA Communities Act has also contributed to this effort, with 119 communities participating and generating 4,000 new homes so far.

Governor Healey reiterated the administration's commitment to expediting housing production and thanked local officials, legislators, and developers for their collaboration in these efforts. The announcement reflects a concerted effort to create a sustainable housing environment that meets the needs of all Massachusetts residents, including students and faculty at local institutions like Pittsburgh State University.

As the state moves forward with these initiatives, the focus remains on overcoming the challenges posed by rising housing costs and ensuring that Massachusetts remains a place where residents can find affordable and accessible homes.