With the state recently announcing $182 million in low-incoming housing tax credits and subsidies to 21 rental housing developments to create or preserve 1,245 homes across Massachusetts, both Easthampton and Hadley are the Hampshire County communities included in the awards.
On July 31, the Healey-Driscoll administration announced $182 million in low-income housing tax credits and subsidies to 21 rental housing developments that will create or preserve 1,245 homes across the state.
In total, the administration has supported the creation of 6,071 affordable rental units since Gov. Maura Healey took office in January 2023.
These awards were made possible in part through the Affordable Homes Act and by Healey’s tax cuts package, which raised the Low-Income Housing Tax Credit to $60 million annually, a $20 million increase that allows the state to support more affordable housing production.
“Our administration is working on all fronts to build more reasonably priced housing and lower costs for everyone,” said Healey. “These awards are creating thousands of apartments that people can actually afford. This is helping seniors age independently and close to their families and helping workers afford to live in the communities where their jobs are. Congratulations to the municipalities and developers who are receiving these well-deserved awards today.”
Housing and Livable Communities Secretary Ed Augustus added this funding round was about more than just bricks and mortar, it was about the people.
“Whether it’s a formerly homeless individual in Boston, a senior in Topsfield or a working family in Easthampton, the homes we’re supporting will change lives. These projects exemplify the Healey-Driscoll administration’s belief that everyone in Massachusetts deserves a safe, stable and affordable place to live.”
Nearly 420 of these homes will be deeply affordable for households earning less than 30% of the area median income, or AMI, including many individuals and families transitioning out of homelessness. In total, 1,143 of the homes will be affordable to those earning less than 80% of AMI.
This round of funding will include $32.2 million in federal 4% and 9% Low-Income Housing Tax Credits, $31.6 million in state Low-Income Housing Tax Credits, $118.2 million in direct subsidies from the Executive Office of Housing and Livable Communities.
These investments will leverage nearly $450 million in private equity, supporting urgently needed affordable housing in urban, suburban and rural communities.
The project benefiting from this award in Easthampton will be the new construction project on Ferry Street. The nonprofit sponsor for the project is Home City Development, Inc. The project will be constructed on a site including former mill buildings.
“This is critical. The city’s been really trying to be a partner in the Ferry Street project for so many reasons because the Ferry Street Mills were such an eye sore and such a hazard to the community, and now we have this opportunity to turn them into amazing housing that is a mix of market rate and affordability,” said interim Mayor Salem Derby. “It’s so important for the vitality of the mills and the character of the community. It’s a huge deal.”
When complete, Ferry Street will offer 96 total units. 91 units will be reserved for households earning less than 60% of AMI, with 27 units further reserved for households earning less than 30% of AMI, and in some cases, transitioning from homelessness.
“Without the money from the state, we don’t have the capability of leveraging that kind of project,” Derby said.
Derby added, with the ongoing housing crisis projects like these are vital for the city and that the latest 90 plus units to be added through this project is just one piece of the work at large.
“You can’t look at these as just compartmentalized. We have Ferry Street coming online. We have the schools that are going to be redone, we are going to have more affordable, more market rate, more mixed units. We have the potential for the Kestrel property on Main Street, on the Southampton border,” Derby said.
He continued, “We have all these projects that we’re kind of juggling. They all take time, they’re all staggered, but adding inventory to a small city like Easthampton — when we don’t have a ton of open space that’s left to build — is so critically important. You go one piece at a time and put them into the puzzle. The idea is hopefully we can have a vibrant community with mixed incomes together and that can really take some of the pressure of costs which has really gotten out of control.”
Funding to Hadley will be used for the EconoLodge Redevelopment project which is the adaptive re-use of a closed hotel as permanent supportive housing. The nonprofit sponsor for the project is Valley Community Development Corporation. The completed project will include 50 units for individuals or small households earning less than 60% of AMI, with 31 units further reserved for individuals or small households earning less than 30% of AMI. The completed project will primarily serve homeless individuals.
