Massachusetts to Invest $140M in Over 1,300 Affordable Homes

Funding will convert vacant commercial buildings and create new affordable rental units across the state.

Published on Feb. 23, 2026

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The Healey administration announced a $140 million investment to create over 1,300 affordable homes in Massachusetts. The funding will go towards two state programs - the Commercial Conversion Tax Credit Initiative and the Affordable Housing Development grant program. The initiatives aim to transform underutilized commercial properties into new housing and deliver low-income housing tax credits and subsidies for affordable rental developments across the state.

Why it matters

This investment is part of the state's efforts to address the housing shortage and bring new life to downtowns and neighborhood centers where commercial buildings are underutilized. The projects are expected to not only provide much-needed affordable housing, but also support local businesses and strengthen communities by bringing more residents and foot traffic to these areas.

The details

The Commercial Conversion Tax Credit Initiative will distribute $8.4 million to five projects creating 339 homes across Boston, Fitchburg, New Bedford, Pittsfield and Worcester. The largest project in Worcester will create 198 homes in a historic office building downtown. Another $139.5 million will go to the Affordable Housing Development grant program, delivering 903 affordable homes and 284 homes for extremely low-income households, including individuals and families transitioning from homelessness.

  • The funding announcement marks the first round of Commercial Conversion Tax Credit Initiative awards since the program was created under the $5.2 billion housing bond bill Healey signed in 2024.
  • The Affordable Housing Development grant program will deliver 15 rental housing developments across the state.

The players

Maura Healey

The Governor of Massachusetts who announced the $140 million investment in affordable housing.

Kim Driscoll

The Lieutenant Governor of Massachusetts who called the awards part of 'a downtown comeback'.

Ed Augustus

The Executive Office of Housing and Livable Communities Secretary who said the 15 affordable housing developments will help move 1,008 homes forward statewide.

Peter Marchetti

The Mayor of Pittsfield who said the announcement supports the 'city's long-term vision for housing as we continue to provide options that serve every need.'

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What they’re saying

“Too many downtown buildings across Massachusetts are sitting dark and empty when they could be part of the solution to our housing shortage. The Affordable Homes Act gave us new tools to move faster and smarter, and this first round of Commercial Conversion tax credits will help turn underused commercial properties into homes, bring new energy to our downtowns and lower housing costs for residents.”

— Maura Healey, Governor (bostonherald.com)

“These 15 developments will help move 1,008 homes forward statewide, delivering the homes seniors, families and workers need to stay in the communities they call home.”

— Ed Augustus, Executive Office of Housing and Livable Communities Secretary (bostonherald.com)

“Creating housing in these central areas supports local businesses, strengthen neighborhoods and help more people live closer to jobs, transit and everyday amenities.”

— Kim Driscoll, Lieutenant Governor (bostonherald.com)

What’s next

The state will continue to award funding through the Commercial Conversion Tax Credit Initiative and the Affordable Housing Development grant program to transform more vacant commercial buildings into affordable homes and create additional rental housing developments across Massachusetts.

The takeaway

This major investment in affordable housing demonstrates the state's commitment to addressing the housing crisis and revitalizing downtowns by repurposing underutilized commercial spaces. The projects are expected to not only provide much-needed homes, but also support local businesses and strengthen communities across Massachusetts.