The Commonwealth of Massachusetts has made a commitment to building more affordable housing through the Affordable Homes Act (AHA). This $5.16 billion law was passed in the summer of 2024. It is a bond bill which means that it allows the state to go into debt to provide these funds. The funds will be available over a 5-year period. The AHA also has a number of housing policy changes including Accessory Dwelling Units (ADUs) by right in single family residential districts.
It is a long bill with a lot of provisions, many of which Greenfield should use to its advantage. It includes provisions for regional equity. Translation: some of the money should go to Western Massachusetts. Because our developments are often smaller (therefore less cost effective) than those in other parts of the state, it has been more difficult for Western Massachusetts developers, profit and non-profit, to benefit from state housing funding programs in the past. The Executive Office of Housing and Livable Communities (EOHLC) has heard us loud and clear on this, but the devil is in the details and we and our House and Senate delegation will be watching carefully where the funding goes.
The process for accessing these funds is through the One Stop process Community One Stop for Growth which allows a developer to use one application to apply for all the programs in the AHA. EOHLC reviews the application and applies it to the appropriate programs. It is, however, a long process.
Because Greenfield needs a great deal of affordable housing, funding through the AHA is essential. Our building costs are about the same as those of Eastern Massachusetts, but because our income levels here are relatively less, the rents/mortgages that people can afford to pay are also less. The subsidies that the AHA can provide make up the difference in the development of this new housing.
In addition to this funding, developers can also build the old fashioned way….get a loan from a bank or investors and build. It is faster but does not allow for the subsidies as part of the development process. Developers who go this route are, of course, able to rent to folks who have Section 8 or MRVP certificates (See Affordability section). If they go this route, it is likely that the building process will be a bit faster. They do have to rent to people under the HUD FMR (Fair Market Rents) guidelines 2025 FMR (Greenfield is on page 26). If their building costs are high, this may be difficult.
Transfer fee: There is also a future possibility of a “transfer fee.” This legislation would allow Massachusetts cities, towns and groups of cities/towns to enact a small fee on high-value real estate sales. The fee would go to funds designated to create and support affordable housing.
If you are seeking affordable housing, contact:
Greenfield Housing Authority https://www.greenfieldhousing.org/ look at the application forms section.
Franklin County Regional Housing and Redevelopment Authority https://fcrhra.org