On August 6, 2024, Governor Maura Healey signed into law, the Affordable Homes Act, (H.4977) authorizing nearly $5.16 billion in spending over the next five years with approximately 49 policy initiatives to counter rising housing costs in the Commonwealth and create more affordable housing in Massachusetts. Importantly, effective February 2, 2025, the bill includes a significant new zoning amendment, requiring municipalities to permit the building of accessory dwelling units (“ADUs”) in single-family zoning districts throughout Massachusetts, without the need for additional permits or zoning relief. Additionally, the bill also includes other incentives to promote and increase residential construction throughout the Commonwealth.
Accessory Dwelling Units
The newly permitted ADUs are described by the bill as “a self-contained housing unit, inclusive of sleeping, cooking and sanitary facilities on the same lot as a principal dwelling.”[1] The ADU may be attached to the principal dwelling or be freestanding and be not larger in gross floor area than half the gross floor area of the principal dwelling, or 900 square feet, whichever is smaller. The construction of the ADUs are subject to additional restrictions that may be imposed by municipalities, including “additional size restrictions and restrictions on prohibitions on short-term rental, as defined in Section 1 chapter 64G.” Additionally, the law vaguely states that “no municipality shall unreasonably restrict the creation or rental of an accessory dwelling unit that is not a short-term rental.”[2]
Commercial Property Conversion Initiative
An overarching and recurring theme of Governor Healey’s administration has been the focus on creating more affordable residential opportunities throughout the Commonwealth. With the COVID-19 pandemic changing the physical workspace landscape, it is probable that there are many underutilized office spaces and commercial buildings in Massachusetts. The new law incentivizes the conversion of commercial properties into residential housing or mixed-used developments by offering a tax credit of up to 10 percent of the development cost.
Potential Impact of the New Zoning Law
This new historic legislation will undoubtedly encourage a spike in residential housing construction in the near future and will create more (and hopefully affordable) housing in the Commonwealth as a whole. However, there is clearly some ambiguity in the new law which will likely lead to litigation or policy clarifications, including what constitutes an “unreasonable restriction” by municipalities regarding the ADU zoning. We are keeping a close eye on all elements of the new zoning laws. Please contact Adler Pollock & Sheehan for guidance navigating the requirements of this new legislation.
[1] See G.L. c. 40A §3
[2] See id.