Chapter 40B Housing in Massachusetts

Chapter 40B Housing in Massacdhusetts

 

I received another inquiry from another reader regarding the Comprehensive Permit Act, more commonly referred to as Chapter 40B. Despite the many negative connotations regarding these projects, their intent is to serve a very utilitarian and positive purpose:. The goal of Chapter 40B is to allow working families and seniors to remain in their communities when they might otherwise be priced out of the conventional housing marketing. Below is some insightful information which many may find helpful, especially when dealing with aging parents and working families looking for an opportunity to grab a hold of a piece of the American Dream.

 

Again, thank you to my reader for your inquiry.

 

What is chapter 40B affordable housing?

 

Chapter 40B Housing is a program created by Massachusetts in 1969 to allow developers to override local zoning bylaws in order to increase the stock of affordable housing in municipalities where less than 10% of the housing stock is defined as affordable. The goal of Chapter 40B is to allow working families and seniors to remain in their communities when they might otherwise be priced out of the conventional housing marketing. The statute was designed to permit the development of multifamily and affordable housing in suburban and rural parts of the state.

 

Who can take advantage of Chapter 40B Housing?

 In order to qualify for Chapter 40B housing, at least 20-25% of any proposed development has to provide housing which serves households at or below 80% of the area's median income. Such housing developments can be for rent or for sale as long as the affordable units are permanently restricted to remain affordable. Since the Chapter 40B went into effect, 56,000 units in over 1,000 developments have been created. Of those units, 30,000 units are reserved for households earning below 80% of the median income.

Qualifying for 40B

 You may qualify for a 40B home if

 •you have less than $75,000 in assets

  •you have not owned a house in the last three years prior

  •your household annual income is below

  ◦1 Person Household: $45,500

 ◦2 Person Household: $52,000

 ◦3 Person Household: $58,500

 ◦4 Person Household: $65,000

 ◦5 Person Household: $70,200

 ◦6 Person Household: $75,400

 

Exceptions are available based on age, recent displacement, and other circumstances. If you think you might be eligible but aren't sure, or are close and might need an exception, please let us know! We would be happy to work with you confidentially on your application.

 

How is Chapter 40B Housing different from other affordable housing programs?

What distinguishes Chapter 40B housing from other affordable housing programs is that there is no "subsidy" or state budget allocation. Instead, the cost of the affordable units has to be absorbed by the developer as part of the overall financing of the project. The market rate units in the development have to make up for the difference since the affordable units must be sold or rented below their market value.

As always, if you have, or anyone you know has, any questions about this information, please feel free to contact my office at any time.

 

Please remember that this answer is provided in the spirit of public education, not as legal advice. If you require legal advice for a particular situation, you should consult an attorney.