After adopting an environmentally friendly provision, the Senate on Thursday passed a roughly $1.8 billion housing bill that would recapitalize affordable housing programs and extend tax credits.

Leaders in both parties have sounded the alarm about the high and rising cost of housing in Massachusetts. The median single-family home sale price in 2017 ranged from $512,000 in Middlesex County, $475,000 in Norfolk County and $497,000 in Suffolk County, according to The Warren Group, publisher of Banker & Tradesman.

“Our affordable housing shortage has placed the commonwealth’s financial health at risk,” Winthrop Sen. Joseph Boncore, co-chairman of the Housing Committee, said in a statement. He called the bill a “first step toward ensuring Massachusetts develops enough affordable housing to support both its workforce and its economic future.”

Lawmakers are separately considering proposals to relax local restrictions that prevent more housing construction. Housing advocates and construction interests favor new rules to encourage multifamily homes; local officials have resisted changes that usurp their control over real estate development.

Andover Sen. Barbara L’Italien proposed an amendment to make it easier to build accessory dwellings for elderly family members and people with disabilities. A Democrat who is running for Congress, L’Italien withdrew the proposal, saying she knew it lacked the support needed to be included in the bill.

The Senate adopted a proposal from Gloucester Republican Sen. Bruce Tarr enabling state officials to spend money included in the bill on energy efficiency and climate adaptation improvements.

The Senate passed the bill unanimously.

Gov. Charlie Baker has pushed for legislation (H 4075) to allow municipal governments to change their zoning rules with a simple majority vote rather than the existing two-thirds requirement. The Housing Committee sent the governor’s bill to the House Committee on Ways and Means.

In addition to financing bond-funded programs such as the Affordable Housing Trust Fund, the legislation also extends the authorization for tax-credits designed to spur housing development.

The Senate extended the low-income housing tax credit with an annual allocation of $25 million, which is 25 percent higher than the amount included in the House version.

“The high cost of housing across Massachusetts strains family incomes and local businesses. These investments are an important step to create more affordable, livable communities, support a growing, healthy economy and expand access to quality housing for everyone,” said Senate Ways and Means Chairwoman Karen Spilka.

The bill includes $45 million for the development of early education facilities and out-of-school time programs; $65 million for housing that serves individuals with mental illnesses or intellectual disabilities; and $100 million to develop alternative forms of rental and ownership housing, including homes for people in recovery. The biggest single item in the bill is $600 million to invest in the state’s substantial portfolio of public housing.

The House version of the housing bond passed 150-1 on Jan. 24. A House-Senate conference committee could be appointed to develop a consensus bill.

Senate Approves $1.8B Housing Bond

by State House News Service time to read: 2 min
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