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Advocates press ADU trust fund to help low‑ and moderate‑income homeowners build accessory units

5571249 · June 25, 2025
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Summary

Witnesses told the Joint Committee on Housing that an ADU trust fund (H1482 / S969) would finance predevelopment and construction costs for accessory dwelling units and help low‑ and moderate‑income homeowners build income‑producing units; supporters urged the committee to advance the bill.

Multiple witnesses told the Joint Committee on Housing that an accessory dwelling unit (ADU) trust fund would address financial and technical barriers that keep ADUs out of reach for many low‑ and moderate‑income homeowners.

Who testified: Jesse Kansen Beninov, executive director of Abundant Housing Massachusetts, testified in support of H1472/S969 (ADU trust fund) and H1542/S964 (study on single‑stair residential buildings). Beninov said the fund would address financial barriers property owners face in building ADUs and help the state meet ADU production goals after the Affordable Homes Act legalized ADUs by right.

Other testimony: Courtney Brunson of the Boston Foundation and the Bridging Wealth Gap Partnership said ADUs “are one of the most effective tools we have to expand affordable housing in Massachusetts,” but noted many low‑income homeowners face upfront costs such as permitting, site work and utility connections. She told the committee the average ADU costs between $150,000 and $350,000 to build and highlighted Boston’s program, which offers a $7,500 predevelopment grant and $50,000 soft loans for households under 110% of area median income.

Details and context: Witnesses said lenders often exclude projected ADU rental income from underwriting, limiting borrowers’ access to financing. Several witnesses asked the committee to create a statewide trust fund that could provide design grants, soft construction loans, and technical assistance similar to Boston’s program so smaller towns could adopt scalable supports.

Panel asks and limits: Supporters asked the committee to report the ADU trust fund bills favorably. No committee vote or formal action was reported at the hearing.

Ending: Advocates said a state trust fund could help the administration’s stated production goals for ADUs and improve access to homeownership income streams for homeowners and families.