Massachusetts awards $18 million in HDIP tax credits to spur housing in Fitchburg and other gateway cities

Governor Maura Healey announced at a Downtown Fitchburg event that the Commonwealth will award $18 million in tax credits through the Housing Development Incentive Program (HDIP) to unlock new homes in gateway cities across Massachusetts.

The announcement, delivered at 347 Main Street during a tour of local projects, is part of a broader set of state housing actions the administration highlighted, including a fiscal year total of $57 million in HDIP awards and the release of the state—s first comprehensive housing plan. "We're here today to announce the award of $18,000,000 in tax credits to unlock new homes in cities all across Massachusetts," Governor Maura Healey said. "This fiscal year, we've awarded $57,000,000 for new housing in gateway cities through these HDIP tax credits. And best of all, we've gotten more than, well, close to 1,300 new homes into production."

Housing and Livable Communities Secretary Ed Augustus said the new $18 million round will directly support projects that combine housing with downtown commercial activity and transportation access. "Today's investment of $18,000,000 in HDIP awards will create 288 new units in 6 gateway cities across the state," Augustus said, and he listed awardees and unit counts named at the event, which include local and regional developers.

Local developer Paul Tassi, CEO of the Tassi Group, described the Main Street rehabilitation where the announcement took place as a direct example of HDIP—s impact. "This building is a 50 years old and could have never been restored without the programs that were put into place by this administration," Tassi said, describing structural work and the addition of eight market-rate apartments above ground-floor commercial space.

Congresswoman Lori Trahan, members of the state delegation and municipal leaders attended the event. Trahan praised state efforts to increase housing production and warned against proposals in Washington she said would cut housing assistance. "We should be investing more in programs like HDIP, not less," Trahan said.

The administration tied the HDIP awards to several other statewide housing initiatives announced or implemented in the past year: a permanent tripling of the HDIP annual cap from $10 million to $30 million as part of a tax package, a 50% increase in the low-income housing tax credit, a doubling this year of a senior tax credit to $2,700 per eligible senior, the Affordable Homes Act funding, and the MBTA Communities law participation. Governor Healey noted a reported near-600% increase in houses entering production under recent partnerships: "That's a 600% increase that blows away all previous records," she said.

Secretary Augustus named specific awardees and unit counts as part of the $18 million round announced in Fitchburg: Prime Real Estate Investment (16 units in Fitchburg); PProps Development (8 units in Fitchburg); C Elliott Developers (14 units in Holyoke); Jack Dewey/Calhoun Commons (8 units in Hyannis); Spartan Cleaners Realty (46 units in Hyannis); Mullins Company/Mass Mills Boiler Building (65 units in Lowell) plus another 30 units in the Mass Mills Main Power Building; Heritage Properties/The Emery (36 units in Lowell); a Salem project (38 units); and CMK Development Partners (44 units in Worcester). Augustus said the awards target market-rate housing and catalytic downtown rehabilitations.

Local residents at the event described visible change on Main Street. "Living in Fitchburg right now is a very exciting place," said resident Zachary Boss. A fellow downtown resident, Madeleine, said new businesses and art spaces made downtown living attractive to young professionals.

The governor and her team said the state will continue to implement the Affordable Homes Act and other initiatives to accelerate production. "We're not slowing down," Healey said, adding the administration will work with local officials and developers to speed projects into occupancy.

No formal vote or local legislative action occurred at the event; the announcement describes awards and funding made at the state level. The administration encouraged attendees to visit completed and in-progress sites and to continue coordinating on project implementation.

The state provided a list of awardees and unit counts at the event; where awardee names or descriptions are unclear in the public remarks, the article reports them as stated at the announcement.