Mass. awards $18 million in HDIP tax credits to spur 288 homes across six gateway cities

Governor Maura Healey announced the award of $18,000,000 in Housing Development Incentive Program tax credits to developers working in Massachusetts gateway cities, saying the funding will unlock new homes in Fitchburg and five other communities.

The governor made the announcement at a downtown Fitchburg event with Lieutenant Governor Kim Driscoll, Secretary Augustus of Housing and Livable Communities, U.S. Rep. Lori Trahan, local officials and developers. "We're here today to announce the award of $18,000,000 in tax credits to unlock new homes in cities all across Massachusetts," the governor said.

Why it matters: state officials said the HDIP awards are intended to close financing gaps that make historic-building rehabilitation and market-rate housing in older industrial downtowns financially viable. Secretary Augustus said the $18 million announced at the event will create 288 units across six gateway cities and is part of a larger fiscal-year allocation of roughly $57 million for gateway-city housing.

State context and goals Governor Healey framed the awards as one part of a broader state housing agenda that includes a one-time $57 million boost for HDIP, a permanent tripling of the HDIP cap to $30 million annually, a 50% increase in the low-income housing tax credit, a doubled senior tax credit now worth up to $2,700 per eligible senior and implementation of the $5 billion Affordable Homes Act. "We know that housing costs are the greatest challenge…