On August 6th, Gov. Maura Healey signed a $5.16 billion housing bond bill hoping to ramp up housing production across Massachusetts. Cliff notes version:

Local Option Transfer Fees:  Thanks to the REALTORS who met with legislators to explain the actual impact, the bill DID NOT include language enabling local option transfer fees. It also omits language that would have established a special commission to study local option transfer fees and other revenue generation mechanisms for housing

Accessory Dwelling Units (ADUs) By-Right:  All communities must allow one ADU by-right on all single-family residential lots. The ADU would be subject to “reasonable regulations,” including water and sewer regulations, site plan review, dimensional and setback requirements, and restrictions or prohibitions on the accessory unit’s use as a short-term rental. Owner occupancy requirements are prohibited, as are parking requirements, provided an ADU is within 0.5 miles of transit. Otherwise one parking space is required. The bill requires that any subsequent ADUs on the same lot be subject to a special permit.

The law also includes a $60 million authorization for a program designed to assist homeowners in constructing housing for individuals with disabilities and elderly people who need daily support. This funding could include ADUs as well.

Seasonal Communities: The bill includes language establishing a Seasonal Communities designation which will by default include all municipalities in Dukes and Nantucket Counties, communities with more than 35 percent seasonal housing in Barnstable County, communities with more than 40 percent season housing in Berkshire County, and other communities as designated by the Secretary of Housing and Livable Communities. The bill establishes a Seasonal Communities advisory council comprising at least seven members, including a representative from each regional planning agency which serves at least one seasonal community.  More to follow on this one!

Healthy Homes Program: The bill includes language establishing a Healthy Homes program to support the rehabilitation of existing housing to address health and safety hazards such as mold, asbestos, pests, and lead, and remove barriers to energy and water efficiency improvements. The program will provide grants and loans of up to $50,000 per unit to low-to-moderate income owner occupants, small landlords, and large landlords with varying terms for each category of eligible recipient, with a requirement that at least half of funds made available through the program be made for rehabilitation of housing in gateway cities.

Commercial Conversion Tax Incentives: The bill includes language establishing a tax credit for up to ten percent of the development cost of projects which convert commercial spaces to housing.

Homeownership Production Tax Credit: The bill includes language establishing a homeownership production tax credit to support the production of homeownership units for homebuyers at or below 120 percent of area median income (AMI), covering up to 35% of qualified project expenditures. The bill establishes an annual cap of $10 million for credits issued under these provisions.

Condo Conversions: The bill includes language removing exemptions to the condo conversion law (M.G.L. c.183A) for buildings with fewer than four units, preserving the exemptions only for buildings which are owner-occupied.

Thanks to Eileen Peltier CEO of Hearthway, Inc. (formerly Berkshire Housing) for summarizing local housing funding allocated to the following projects in the Berkshires.

• $1,000,000 for renovation of Cassilas Farm for affordable housing in New Marlborough
• $100,000 for feasibility study of St. Martin Hall at Shakespeare and Company in Lenox
• $100,000 for a site identification feasibility study for artist housing for Barrington State Company and Berkshire Theater Group in Pittsfield.
• $5,000,000 for seasonal supportive housing for the non-profit creative economy in Berkshire County

More to follow as our MAR legislative staff weighs in.