06 Aug MASSACHUSETTS GOVERNOR HEALEY SIGNS AFFORDABLE HOMES ACT, EXPANDS HISTORIC REHABILITATION TAX CREDIT
MASSACHUSETTS GOVERNOR HEALEY SIGNS AFFORDABLE HOMES ACT, EXPANDS HISTORIC REHABILITATION TAX CREDIT
Preservation Massachusetts Supports Affordable Housing Initiative
[BOSTON, MASS., August 6, 2024] – Preservation Massachusetts congratulates Governor Maura Healey and Lieutenant Governor Kim Driscoll on the passage and signing of the Affordable Homes Act, which was signed into law today. This landmark piece of legislation will significantly bolster the Commonwealth of Massachusetts’ efforts to address the ongoing housing crisis.
A key component of the Act expands the Massachusetts Historic Rehabilitation Tax Credit (MHRTC), which increases the funding cap to $110 million until 2030. Preservation Massachusetts has worked closely with the Massachusetts House of Representatives and the Senate to advocate for expanding the MHRTC, a program with a proven record of success. This critical legislation will ensure that the thousands of affordable housing units created through historic rehabilitation projects can receive full tax credits. By preserving and repurposing historic buildings for residential use, the Commonwealth can protect valuable cultural resources while increasing the supply of affordable housing.
“We commend Massachusetts Secretary of State William Galvin and the Massachusetts Historical Commission for their work in support of this impactful tax credit program,” said Preservation Massachusetts’ Executive Director Jessica Rudden-Dube. “This is a historic moment for Massachusetts. By increasing the Historic Rehabilitation Tax Credit, we are not only preserving our rich heritage, but also creating opportunities for families to thrive. This investment will help us build a stronger, more equitable Commonwealth for all.”
The expanded MHRTC will stimulate economic growth, create jobs, and revitalize neighborhoods across Massachusetts. By incentivizing the rehabilitation of historic properties, this legislation will help to protect the Commonwealth’s unique architectural and cultural heritage while addressing the urgent need for affordable housing.
About the Massachusetts Historic Rehabilitation Tax Credit
The Massachusetts Historic Rehabilitation Tax Credit provides up to a 20% tax credit for qualified rehabilitation expenditures on income-producing historic properties. This credit, often coupled with the Federal Rehabilitation Tax Credit, is a critical source of funding. The credits can be sold to a third-party investor for funds, which are often reinvested in the project, making the credit a powerful tool for leveraging private investment in historic preservation and affordable housing.
In 2002, Preservation Massachusetts organized a statewide coalition of organizations to identify an initiative that would have a resounding benefit for preservation efforts in the Commonwealth, leading to the development of the state historic rehabilitation tax credit. Led by Preservation Massachusetts, the Coalition has seen success in drafting, lobbying, and celebrating the benefits of the MHRTC since being signed into law, including the creation of affordable housing. Since its inception, the MHRTC has created more than 18,400 housing units, 10,880 of which are deemed affordable. Projects that are currently underway but not yet complete are set to create another 7,233 housing units, with over 3,000 of them affordable.
About the Affordable Homes Act
The Affordable Homes Act is a comprehensive piece of legislation that includes a variety of provisions to address the housing crisis in Massachusetts. The expansion of the Historic Rehabilitation Tax Credit is one of several key initiatives included in the Act.
For media inquiries, please contact Julie Roper: jroper@preservationmass.org