Massachusetts is putting another major investment behind its effort to expand the state’s housing supply. A new $278 million funding package will support housing projects across 20 communities, with the developments expected to create or preserve more than 2,500 homes.
The funding is the largest single round from the state's housing program in more than a decade. It combines state subsidies with state and federal low-income housing tax credits, which are expected to generate nearly $500 million in private investment for the selected developments.
The money will support a wide range of projects rather than one single development. Some will create entirely new housing, while others will rehabilitate existing properties or redevelop aging public housing. That includes homes for families, seniors, veterans and residents with significant housing needs.
New Housing Across Massachusetts
Several of the projects are located in Greater Boston. In Boston, funding will support projects including 150 Centre Street near the MBTA's Shawmut Station, which is expected to add 72 family homes, as well as new senior and family housing in South Boston, East Boston and Roslindale.
Other communities receiving support include Cambridge, Brookline, Brockton, Newburyport, Northampton, Worcester, Lynn, Ipswich and Watertown. The projects range from new construction to adaptive reuse and public-housing redevelopment, showing how Massachusetts is using different approaches to increase its housing supply.
In Brockton, for example, funding will help preserve and rehabilitate 300 homes at Chatham West I, while another project called Liberty on Legion will create 54 new family homes on an underused downtown property.
The funding also highlights the importance of preserving housing that already exists. With construction costs remaining high, keeping existing affordable units in good condition can be just as important as building new ones. The state's awards include funding to preserve more than 1,100 affordable homes while also supporting new construction.
For the Massachusetts real estate market, the investment comes as the state continues to face high housing costs and limited supply. New construction can add inventory, while rehabilitation and redevelopment can prevent existing affordable homes from being lost.
The developments also demonstrate how public funding can help projects that might otherwise struggle to secure enough financing. By combining government subsidies and tax credits with private investment, Massachusetts is attempting to move more housing projects from planning into construction and preservation.
The impact will ultimately depend on projects receiving their remaining financing and moving forward as planned. But with more than 2,500 homes across 20 communities included in the latest funding round, the initiative represents a significant addition to the state's broader housing-production effort.
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