The Baker administration announced a comprehensive new initiative to substantially increase housing production across the commonwealth yesterday.

The Administration’s Housing Choice Initiative includes a new system of incentives and rewards for municipalities that deliver sustainable housing growth, a new technical assistance toolbox designed to help cities and towns to plan for new housing production; and proposed legislative changes, through An Act to Promote Housing Choices, intended to deliver smart, effective zoning at the local level.

Massachusetts home prices have increased at the fastest rate in the nation, and metropolitan Boston rent prices rank among the highest in the country. In order to address the challenges facing Massachusetts, the Housing Choice Initiative will deliver more than $10 million in incentives, grant funding and technical assistance per year, and enable Massachusetts to realize a new goal of creating 135,000 new housing units by 2025.

“Our growing economy demands a robust and diverse supply of housing to support the Commonwealth’s continued growth and success,” Gov. Charlie Baker said in a statement. “This initiative will maximize collaboration between state agencies, support innovation and data-driven policies, and provide municipalities with the user-friendly tools needed to create more housing where it’s needed. We look forward to working with the legislature and partnering with cities and towns to deliver much needed housing to regions across Massachusetts, while respecting our long-standing home rule tradition.”

Modeled after Massachusetts’ Green Communities program, The Housing Choice Initiative will provide a powerful new set of incentive-based tools for local governments. The Housing Choice Initiative will reward communities that are producing new housing units and have adopted best practices to promote sustainable housing development, use land efficiently, protect natural resources and conserve energy, with a new Housing Choice designation. Cities and towns that receive the Housing Choice Designation will be eligible for new financial resources, including exclusive access to new Housing Choice Capital Grants, and preferential treatment for many state grant and capital funding programs, including MassWorks, Complete Streets, MassDOT capital projects and PARC and LAND grants.

“Our region is in a housing crisis. Solving it will require bold action and a comprehensive solution set,” Somerville Mayor Joseph Curtatone and chair of the Metro Mayor’s Coalition, said in a statement. “That is why the Metro Mayors Coalition just this month launched a regional housing partnership. And that’s why I’m thrilled that Gov. Baker and Lt. Gov. Polito are creating the Housing Choice program and filing legislation to spur the production of housing for people across the economic spectrum. I support this program and endorse the legislation, and I’m excited to work with the Administration so the region and the Commonwealth can lead the way in tackling the most pressing issue we face today.”

The Housing Choice Initiative introduces new and better coordinated technical assistance for municipalities to reach housing production goals and pursue a Housing Choice Program Designation. The Department of Housing and Community Development (DHCD) will provide communities with a clear, single-entry point for coordinated technical assistance across agencies. In coordination with the Housing Choice Initiative, MassHousing will make $2 million in new technical assistance funding available, to help communities progress toward and achieve housing production goals under the state’s Chapter 40B affordable housing law. The Housing Choice Initiative will also track progress towards a new statewide goal of producing 135,000 new housing units by 2025, to help ensure that new housing production keeps pace with projected increases in housing demand.

As part of the Housing Choice Initiative, the administration is proposing legislation that will remove barriers to improved land use and new housing, by promoting the adoption of local zoning best practices. This legislative proposal, An Act to Promote Housing Choices, would allow cities and towns to adopt certain zoning best practices by a simple majority vote, rather than the current two-thirds supermajority. Massachusetts is currently one of only 10 states to require a supermajority to change local zoning; all other northeastern states rezone through simple majority votes.

Zoning changes that promote best practices that would qualify for the simple majority threshold include:

• Building mixed-use, multifamily and starter homes, and adopting 40R “Smart Growth” zoning in town centers and near transit;
• Allowing the development of accessory dwelling units, or “in-law” apartments;
• Granting increased density through a special permit process;
• Allowing for the transfer of development rights and enacting natural resource protection zoning; and
• Reducing parking requirements and dimensional requirements, such as minimum lot sizes.

An Act to Promote Housing Choices does not mandate that cities and towns make any of these zoning changes. The legislation allows municipalities that want to rezone for responsible housing growth to do so more easily, and in a way that is consistent with peer states.

The Baker administration also announced $1,296,219 in grant funding for 37 projects through the new Planning Assistance Grant Program which is funded through spending authorized in the Environmental Bond Bill.