State & Local News
Massachusetts Launches Affordable Housing Programs
March 18, 2026
The Commonwealth of Massachusetts, led by Governor Maura Healey and Lieutenant Governor Kim Driscoll, has launched two key initiatives to expand affordable housing and homeownership opportunities statewide. On March 17, 2026, MassHousing introduced a new accessory dwelling unit (ADU) financing program offering second mortgages up to $250,000 to eligible homeowners for ADU construction. Concurrently, the administration finalized regulations for the Starter Home Zoning District program under Chapter 40Y, providing municipalities with a voluntary zoning tool to encourage modest-sized home development for first-time buyers, supported by state incentive payments to participating municipalities.
- Why this matters: These programs create procurement and partnership opportunities for lenders, builders, and local governments involved in affordable housing development and financing.
- Municipalities adopting Starter Home Zoning Districts can access state incentive payments and production bonuses, encouraging local zoning reforms and housing supply growth.
- Contractors and developers should evaluate potential demand for ADU construction projects financed through MassHousing's loan program.
- Procurement professionals should note the emphasis on multigenerational and affordable housing solutions as priorities in Massachusetts housing policy, influencing future contract opportunities and funding allocations.
These final regulations give municipalities a practical roadmap if they want to create starter home districts, grow their housing supply and strengthen neighborhoods, with state incentive payments to support that work.
— Lieutenant Governor Kim Driscoll
Expanding housing options for Massachusetts residents is one of our administration’s top priorities, and accessory dwelling units are one of the most practical ways to create housing and drive down costs in communities across our state.
— Governor Maura Healey
We thank our statewide network of community lenders for their work to quickly stand up this new program, and we are excited to begin helping local families construct new housing units.
— Mounzer Aylouche, Vice President of Homeownership Programs at MassHousing
Agencies
MassHousing (Massachusetts Housing Finance Agency), Commonwealth of Massachusetts, Executive Office of Housing and Livable Communities, Governor Maura Healey and Lt. Governor Kim Driscoll, Massachusetts Housing Partnership
Contracts
Up to $250,000,