Advocates propose reforms to HDIP, urging subsidy shift to mixed‑income and affordability targets

Several housing advocates and legal service organizations urged the Joint Committee on Housing to reform the Housing Development Incentive Program (HDIP) so the program supports mixed‑income development rather than exclusively subsidizing market‑rate units in gateway cities.

Judith Lieben of the Massachusetts Law Reform Institute told the committee HDIP has in practice flowed to market‑rate, higher‑rent developments. She urged S.971 to require a portion of HDIP‑assisted rental units be affordable to very low‑income households and to prioritize public benefit in awarding tax incentives. Lieben highlighted that recent HDIP allocations totaled millions in awards that did not create affordable units and contrasted that with simultaneous freezes and reductions in voucher issuance cited by EOHLC in budget discussions.

Homes for All and other advocates said HDIP as currently structured can funnel billions of subsidy dollars toward units priced well above local market needs in gateway cities. They argued reforms should tie incentives to affordability tiers, strengthen accountability and require outcome reporting so public dollars yield public benefit.

CHAPA and Progressive Massachusetts also testified in favor of refocusing incentives toward deeper affordability and called for clear production targets at multiple income bands. The committee heard requests to pair HDIP reform with other bills that set higher statewide production goals and affordability allocations.

The committee did not take action on HDIP during the hearing. Advocates said they will submit more detailed accountability provisions and examples of projects that received HDIP awards with rental rates above gateway city norms.