On August 6th, Massachusetts Governor Maura Healey signed into the law House Bill No. 4977, known as The Affordable Homes Act (the “Act”), considered to be the most ambitious housing investment legislation in the Commonwealth’s history. The Act authorizes $5.16 billion in spending over the next five years along with 49 policy initiatives to address rising housing costs brought on by the combination of high demand with limited supply. In addition to the substantial investment in modernizing the state’s housing system, the Act and its related policy changes will lessen impediments to build accessory dwelling units, fortify programs supporting first-time homebuyers and will incentivize building more housing for low to moderate-income residents.
In an attempt to modernize the state’s housing system, the Act, among other things, authorizes: (i) $800 million into the Affordable Housing Trust Fund, which assists in the creation and preservation of affordable housing for households earning less than 100% of area medium income (“AMI”); (ii) $425 million to support new construction and rehabilitation projects through the Housing Stabilization and Investment Trust Fund; and (iii) $100 million for the Middle-Income Housing Fund (administered by the Massachusetts Housing Finance Agency) to fund housing developments for households earning less than 120% of AMI.
In addition to the substantial level of spending authorizations, the Act amends Mass. Gen. Laws 40A § 3 to allow the building of accessory dwelling units under 900 square feet on single-family lots without local zoning approval. Commonly known as “In-Law Apartments,” accessory dwelling units can be attached or detached from a single-family home. They often take shape as a basement or attic conversion, a cottage in a backyard or an addition to a home. The statutory change authorized by the Act replaces the patchwork of inconsistent zoning regulations across the Commonwealth with a uniform law allowing single-family homeowners to construct a small unit on their property without the need for a zoning variance.
The Act is using $50 million to establish a permanent, revolving fund entitled the Residential Production Momentum Fund (the “RPMF”) to accelerate mixed-income and workforce multifamily housing projects. The RPMF will provide financial assistance in the form of debt, equity, or other instruments to projects building units targeting households with incomes between 60% and 120% of AMI. The legislation charges the RPMF to prioritize projects that include, among other things, energy efficient measures, lower embodied carbon construction materials and climate-resilient elements.
The Affordable Homes Act is part of Governor Healey’s ambitious affordable housing strategy which dovetails with her July 2nd announcement of $27 million in Housing Development Incentive Program tax credit awards targeting Massachusetts “Gateway Cities” with smaller populations and households with lower AMIs than the rest of the state.
Virginia Passes Bill to Evaluate Single-Stair/Point Access Block for Multifamily Dwellings
On April 4, 2024, Virginia Governor Glenn Youngkin signed into law Senate Bill 195, which directs the Commonwealth’s Board of Housing and Community Development (the “Board”) to convene a stakeholder advisory group (the “Advisory Group”) to evaluate and recommend revisions to the Uniform Statewide Building Code (§36-97, et seq. of the Code of Virginia) to allow Single-Stair/Point Access Block multi-family dwellings, provided that the building isn’t higher than six-stories. The Advisory Group must submit its findings to the Board, as well as the Chairmen of the State House Committee on General Laws and the Senate Committee on General Laws and Technology no later than December 1, 2024.
This new law reflects the efforts of policymakers across the country striving to modernize housing policy to increase access to affordable housing. However, unlike many initiatives which touch a single regulatory issue, such as density, zoning, lot size or environmental impact, Single-Stair/Point Access Block dwellings simultaneously address two distinct barriers to increase access to housing: density and zoning.
Single-Stair/Point Access Block is an architectural design concept prioritizing a single stairway within multifamily dwelling structures such as apartments or condominiums. This approach involves consolidating stair access to a single point within a residential or commercial block, provided it complies with local fire and building codes.
In traditional multi-story dwellings, multiple staircases are commonly dispersed throughout the building, leading to a network of access points on different floors. Traditional multifamily buildings may be larger to accommodate the multiple staircases, but will probably have smaller, more expensive units. Most American apartment buildings over four stories are required to have at least two means of egress from each unit.
In contrast, Single-Stair/Point Access Block multifamily buildings consolidate all staircases into a centralized location which encircles or is adjacent to the building’s elevator. More commonplace in European, North African and Asian multifamily buildings, this design maximizes useable square footage and can lead to buildings with larger units and increased density. If implemented at a larger scale in the United States, Single-Stair/Point Access Block buildings could increase both affordability and inventory in the communities where they can be built.
For the Advisory Group established under the new Virginia law, the Board will appoint experts in the areas of fire, safety and building design to discuss and evaluate whether or not to multifamily dwellings up to six stories can be adequately and safely served by a Single-Stair/Point Access Block. The Board’s discussions will most likely focus on whether multifamily buildings will be permitted under current zoning controls and if increasing the number of units in the Commonwealth’s multifamily buildings is worth potentially sacrificing multiple means of egress from a safety perspective. Many affordable housing professionals are looking forward to the Advisory Group’s findings to be submitted by the end of this calendar year.