Massachusetts’ FY25 Housing Capital Budget Sees Significant Increases

Massachusetts’ FY25 Housing Capital Budget Sees Significant Increases

July 2024
Don Bianchi

On June 13th, the Healey-Driscoll Administration released its Fiscal Year 2025-2029 Capital Investment Plan, along with its Fiscal Year 2025 Capital Budget. The Executive Office of Housing and Livable Communities (EOHLC) FY25 budget of just under $400 billion is an increase of 30% from FY24.  MACDC created this spreadsheet, which highlights the key line items in the FY25 Housing Budget, along with selected economic development programs.

In reviewing the spreadsheet, you can focus on columns b, c, and d- which compares the budget from Fiscal Years 2023 through 2025. Row 48 shows the totals for the private housing programs used by CDCs and other developers, while Row 49 pertains to the budget for public housing. For the private housing bond-funded programs, the FY25 amounts are 26% higher than the FY24 amounts, and almost a 59% increase from just two years ago! We appreciate the increase in capital spending on affordable housing by the Administration.

The one major disappointment was that, under the FY25 Economic Development Capital Budget, there is only $2.5 million to recapitalize the Brownfields Development Fund, despite the letter we sent in early April to the Governor requesting $10 million in FY25. Furthermore, the increased amounts for affordable housing occur in an environment of rising construction costs and increased demand for limited funding resources.

Nonetheless, the capital budget increases reflect the success of our collective and sustained advocacy. A significant reason is the access we have to Secretary Augustus, through quarterly meetings of the MACDC Board with the Secretary. We also advocate, on our own and in coalition with others, for increased funding levels for the bond-financed housing programs reflected in the capital budget to address the state’s affordable housing crisis. This advocacy has many manifestations: on Lobby Day, through CDC Donuts with Delegates meetings, through MACDC’s presence on Beacon Hill, and through mobilizing MACDC Members to contact their legislators in support of bills and budget items.

For questions about the FY25 Housing Capital Budget, feel free to reach out to Don Bianchi, MACDC’s Director of Housing, at donb@macdc.org.