Governor Healy launches ADU design challenge, $10 million incentives and new financing to spur accessory homes

LEXINGTON, Mass. — Governor Healy on Tuesday announced a statewide accessory dwelling unit (ADU) initiative that pairs a design competition with grants and new loan products aimed at increasing small-scale housing across Massachusetts.

The initiative includes an ADU design challenge whose winning plans will be posted online free for homeowners and builders, a $10 million capital program administered through the Mass Housing Partnership to help homeowners navigate permitting and feasibility, and a MassHousing construction loan product for moderate- and lower-income homeowners. “ADUs work for families. They work for communities. They work for our state,” Governor Healy said at an event in Lexington showcasing a newly installed ADU.

The administration framed the moves as part of a broader push to build more homes and reduce housing costs after passage of the Affordable Homes Act roughly a year ago, which state officials said made ADUs allowable by right. “In the first 6 months of changing the law, we've seen over 1000 applications for ADUs,” Governor Healy said, citing early demand.

Under the announced timeline, the ADU design challenge opens next Monday and will solicit submissions from designers, architects and other design professionals. Secretary Ed Augustus said sponsors have committed $60,000 in prize money — $20,000 for first place, $15,000 for second and $10,000 for third — plus awards for exceptional entries and an AIA Massachusetts People's Choice Award. Submissions are due in February and winners will be announced in late April.

The Mass Housing Partnership incentive program is intended to help homeowners take initial steps, such as feasibility and permitting, while MassHousing is developing construction financing. Secretary Augustus said loan products will be made available in phases: loans up to $250,000 for detached ADUs and up to $150,000 for attached ADUs. “Loans up to $250,000 will be available for detached ADUs and up to a 150,000 for attached ADUs,” Augustus said, adding that MassHousing will release more program details in January and open applications in March.

State officials said the three pieces — design resources, upfront incentives and financing — are not a single solution but together should lower technical, cost and permitting barriers that have kept many homeowners from building ADUs. The administration also framed the effort as complementary to other reforms to shorten permitting times and expand zoning where needed.

At the Lexington event homeowners Mark and Linda Adler, whose property hosts the demonstration ADU, described a four-month installation done by crane, minimal neighborhood disruption and practical family benefits from having multiple generations close by. Governor Healy thanked the Adlers and local leaders for helping showcase what an ADU can look like in a Massachusetts neighborhood.

In brief closing remarks, Governor Healy also acknowledged an Office of the Child Advocate report related to the death of a child named Azalea and said the Department of Children and Families will review the findings and consider the report's recommendations.

Next steps: the design challenge will accept submissions beginning next week, prize winners will be named in late April, and MassHousing will publish loan program details in January with applications opening in March.