Budget Amendment ID: FY2026-S3-249-R1

Redraft ECO 249

Unlocking Housing Production

Messrs. Cyr, Tarr, Keenan, Payano and Finegold, Ms. Creem, Ms. Edwards and Ms. Lovely moved that the proposed new text be amended in section 2, in item 7006-0142, by adding the following words:- “; provided further, that not less than $330,000 shall be expended to modernize and increase state building inspection capacity at the board of building regulations and standards”; and by striking out the figure “$19,916,561” and inserting in place thereof the following figure:- “$20,546,243”; and

by inserting after section 85 the following 3 sections:-

“SECTION 85A. The executive office of housing and livable communities, in consultation with the department of revenue, shall study the feasibility and efficacy of a housing construction sales tax exemption program or other form of state support for multifamily housing projects that are stalled or at risk of being stalled due to increased cost of materials associated with federal tariffs or other economic volatility for which there are no state or federal subsidies available. The executive office shall submit a report on its findings which shall include recommendations regarding potential cost and how such a program would best achieve statewide housing affordability goals. The report shall consider construction cost variation across regions of the commonwealth, including geographically isolated communities. The report shall be filed with the clerks of the senate and the house of representatives, the joint committee on housing, the joint committee on revenue and the house and senate committees on ways and means not later than January 1, 2026.

SECTION 85B. The executive office of housing and livable communities, in consultation with the office of public safety and inspections and the board of building regulations and standards, shall study the feasibility and efficacy of allowing licensed third-party inspectors to conduct inspections of manufactured housing, off-site construction and multifamily housing projects. The executive office shall submit a report on its findings which shall include training recommendations and licensure guidelines and processes. The report shall be filed with the clerks of the senate and the house of representatives, the joint committee on housing, the joint committee on revenue and the house and senate committees on ways and means not later than January 1, 2026.

SECTION 85C. The executive office of housing and livable communities, in consultation with the executive office for administration and finance, the division of local services and the department of revenue, shall study the feasibility and impact of allowing municipalities, by local option, to exempt new affordable housing developments from the provisions of paragraphs (b) and (f) of section 21C of chapter 59 of the General Laws. The study shall include, but not be limited to: (i) potential revenue benefits; (ii) potential new affordable housing units created; (iii) the impact of allowing municipalities, by local option, to exempt new affordable housing developments at a multiplier of 5 and 10 times the value prescribed in said paragraphs (b) and (f) of said section 21C of said chapter 59; (iv) the impact on housing developments with different percentages of affordable units; (v) the impact of requiring affordability thresholds to qualify for such exemptions; and (vi) a comparison of potential impacts across different municipalities in the commonwealth. The executive office of housing and livable communities shall submit a report of its findings to the clerks of the senate and house of representatives, the joint committee on housing, the joint committee on revenue and the house and senate committees on ways and means not later than March 1, 2026.”.