Massachusetts Governor Deval Patrick recently signed into law a statute dubbed the “expiring use” bill, aimed at preserving as affordable, thousands of units of housing in Massachusetts intended to be used by low-income residents. The bill creates a regulatory framework to keep affordable rents in properties affected by expiring affordability restrictions. About 17,000 units are at risk of losing their affordability through expiring use over the next three years. Massachusetts’ Department of Housing and Community Development (DHCD) plans to release regulations within 150 days to clarify the way the law will operate.
The Governor’s administration also announced a new $150 million preservation loan fund to help secure these rental developments that are about to lose their expiring use restrictions. The fund includes $3.5 million in grant funding from the John and Catherine T. MacArthur Foundation, $40 million from private lender investments, $100 million provided by MHIC, and $6.5 million in State Bond Funds from the Commonwealth of Massachusetts.