Massachusetts Affordable Homes Act Gives the Green Light for Accessory Dwelling Units

The largest housing bond bill ever filed in Massachusetts was signed into law on Tuesday by Governor Maura Healey, authorizing $5.15 billion in spending over the next five years and 49 policy initiatives to counter rising housing costs.

The legislation covers several areas, like giving a boost to programs for first-time home buyers and giving incentives to build housing for low to moderate-income residents.

It also authorizes an “unprecedented investment” in allowing accessory dwelling units on single-family lots.

So, whether you call it an in-law apartment or you're converting an attic, the Affordable Homes Act just rewrote the rule book for many homeowners and those looking to live in Massachusetts.

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What Is the Affordable Homes Act?

According to Governor Healey and Lt. Governor Kim Driscoll, The Affordable Homes Act and related initiatives will support the production, preservation, and rehabilitation of more than 65,000 homes statewide over the next five years.

“The Affordable Homes Act creates homes for every kind of household, at every stage of life, and unlocks the potential in our neighborhoods,” said Governor Healey. “Today we are taking an unprecedented step forward in building a stronger Massachusetts where everyone can afford to live.”

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Massachusetts Affordable House Act Allows ADUs

The Affordable Homes Act allows accessory dwelling units (ADUs) under 900 square feet on a homeowner’s property.

“Accessory dwelling units can be attached or detached from a single-family home and often take shape as a basement or attic conversion, a cottage in a backyard, or a bump-out addition to a home,” said the Executive Office of Housing and Livable Communities.

The new policy allows homeowners on a single-family lot to bypass the need for a special permit or variance, however, construction of ADUs are still subject to local building codes.

The Healey-Driscoll Administration estimates that 8,000 to 10,000 ADUs will be built across the state over the next five years.

How Do ADUs Help the Housing Crisis in Massachusetts?

The Affordable Homes Act is all about making Massachusetts a place where people can afford to not only live but to thrive.

The Healey-Driscoll Administration points to high demand and limited supply for the state’s rising housing costs. Allowing the construction of ADUs unlocks huge potential for a broader selection of housing options.

“Housing plays a critical role in supporting our local economies and this bill will make a meaningful difference in helping Massachusetts residents to live, work and stay here in the state that they love,” said Lieutenant Governor Kim Driscoll. “Together we understand the importance of investing in housing in order to remain a competitive state.”