Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4284 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 3
2	2	HOUSE DOCKET, NO. 4831 FILED ON: 1/24/2024
3	3	HOUSE . . . . . . . . . . . . . . . No. 4284
4	4	OFFICE OF THE GOVERNOR
5	5	COMMONWEALTH OF MASSACHUSETTS
6	6	STATE HOUSE · BOSTON, MA 02133
7	7	(617) 725-4000
8	8	MAURA T. HEALEY
9	9	GOVERNOR
10	10	KIMBERLEY DRISCOLL
11	11	LIEUTENANT GOVERNOR
12	12	January 24, 2024
13	13	To the Honorable Senate and House of Representatives,
14	14	Over the past year, the Emergency Assistance program in Massachusetts expanded at an
15	15	extraordinary rate to meet rising demand, reaching the program’s capacity limit of 7,500 families
16	16	in November 2023.
17	17	The Fiscal Year 2024 appropriation for the Emergency Assistance program in the
18	18	General Appropriations Act included $325 million of funding to support only 4,100 families. In
19	19	September 2023, our Administration requested additional appropriations for the Emergency
20	20	Assistance program and related support, reflecting the then-current caseload of approximately
21	21	6,400 families. The Legislature recently approved this supplemental funding, providing a critical
22	22	infusion of resources to keep the system operating for the next several months. With the
23	23	program operating at its capacity of 7,500 families, however, the Emergency Assistance program
24	24	remains in a deficiency of $224 million in the current fiscal year.
25	25	The state of emergency in our shelter system requires resources to ensure that families are
26	26	safe and supported in communities, schools, and spaces that are resourced appropriately to assist
27	27	them.
28	28	It also requires a multi-faceted set of policies that include education, workforce training,
29	29	and affordable housing programs to enable families to leave shelter and move on to stable
30	30	housing. In partnership with the Department of Homeland Security and multiple state agencies,
31	31	our Administration successfully ran two weeks of work authorization clinics for migrants in
32	32	Emergency Assistance and we remain focused on providing job training and pathways for
33	33	parents. But finding and affording housing remains extremely challenging for far too many in
34	34	Massachusetts. That is why this legislation also puts a down payment on additional housing 2 of 3
35	35	production for the types of affordable options that are all too scarce in some of our communities,
36	36	with up to $150 million dedicated to housing production and preservation.
37	37	At the same time, we need to support our partners - the local communities - that have
38	38	stepped up to welcome newly arriving families and neighbors who need a hand. In particular, we
39	39	must assist the schools and school districts that play a key role in helping children whose
40	40	families are experiencing homelessness.
41	41	While we hope that these investments and policies will lead to a decrease in the number
42	42	of families seeking shelter, the current average length of stay for families in the system exceeds
43	43	one year. That means that even with the system’s capacity level established, and significant
44	44	efforts underway to advance solutions, deficiency needs for EA are a two fiscal year problem,
45	45	requiring a solution that spans FY24 and FY25. Thankfully, the state has the resources available
46	46	in Transitional Escrow, comprised of savings from prior years’ budget surpluses, to put a plan in
47	47	place that will address the funding needs in FY24 and most of FY25 without requiring offsetting
48	48	budget cuts to other programs.
49	49	Therefore, I am proposing that the Legislature appropriate $873 million into an
50	50	Emergency Housing and Community Trust Fund for immediate and anticipated needs of the
51	51	various agencies that each have a unique role in responding to heightened demand in our
52	52	Emergency Assistance system and moving us toward a safe, supportive, and positive pathway to
53	53	better futures for our unhoused families.
54	54	Funding from this proposal will:
55	55	• Invest in housing production to spur development of the types of affordable units
56	56	that will provide stable, permanent housing opportunities for families outside the shelter system;
57	57	• Cover the costs of shelter for the Emergency Assistance program capacity
58	58	caseload of 7,500 families through the end of Fiscal Year 2024 and most of Fiscal Year 2025;
59	59	• Provide for the necessary services and supports for those 7,500 families in order
60	60	to safely address their basic needs;
61	61	• Cover the costs of temporary emergency shelters, Family Welcome Centers, and
62	62	clinical assessment and intake services, and other supportive programs;
63	63	• Assist local school districts with emergency aid for students whose families are
64	64	experiencing homelessness;
65	65	• Assist cities and towns with the actual costs and impacts of welcoming unhoused
66	66	families and family shelter sites into their communities; 3 of 3
67	67	• Launch new programs targeting the barriers to stable housing and the factors
68	68	causing family shelter stays to be historically long, including efforts toward workforce skills,
69	69	work authorizations, and English language instruction for employment; and
70	70	• Provide health care and specialized immigration and refugee-focused case
71	71	management to families who need them.
72	72	Critically, the bill also includes provisions to allow for the efficient use of available
73	73	resources by authorizing the transfer of funds between related programs, which will allow
74	74	appropriated shelter funding to be utilized where it is most needed across the system to address
75	75	the current extraordinary demand. This creates flexibility in how we address costs in FY25 so
76	76	that if circumstances change, for example an infusion of federal support or broader work
77	77	authorizations, resources can be redirected from reacting to the current situation to investing in
78	78	housing production and preservation to make affordable, stable housing options available to
79	79	more families.
80	80	I urge you to enact this legislation in the weeks ahead to ensure continued safe shelter
81	81	and services for families in our shelter system, to support our cities and towns who are
82	82	welcoming unhoused families into their communities, and to expand pathways to work and
83	83	opportunities to exit the EA system for permanent, stable housing.
84	84	Respectfully submitted,
85	85	Maura T. Healey,
86	86	Governor 1 of 6
87	87	HOUSE . . . . . . . . . . . . . . . No. 4284
88	88	The Commonwealth of Massachusetts
89	89	_______________
90	90	In the One Hundred and Ninety-Third General Court
91	91	(2023-2024)
92	92	_______________
93	93	An Act making appropriations for the fiscal year 2024 to provide for supplementing certain
94	94	existing appropriations and for certain other activities and projects.
95	95	Whereas, The deferred operation of this act would tend to defeat its purposes, which are
96	96	to make supplemental appropriations for fiscal year 2024 and to make certain changes in law,
97	97	each of which is immediately necessary to carry out those appropriations or to accomplish other
98	98	important public purposes, therefore it is hereby declared to be an emergency law, necessary for
99	99	the immediate preservation of the public convenience.
100	100	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
101	101	of the same, as follows:
102	102	1 SECTION 1. To provide for supplementing certain items in the general appropriation act
103	103	2and other appropriation acts for fiscal year 2024, the sums set forth in sections 2 and 2A,
104	104	3inclusive, are hereby appropriated from the General Fund unless specifically designated
105	105	4otherwise in this act or in those appropriation acts, for the several purposes and subject to the
106	106	5conditions specified in this act or in those appropriation acts, and subject to the laws regulating
107	107	6the disbursement of public funds for the fiscal year ending June 30, 2024. These sums shall be in
108	108	7addition to any amounts previously appropriated and made available for the purposes of those
109	109	8items. These sums shall be made available through the fiscal year ending June 30, 2025.
110	110	9 SECTION 2.
111	111	10 EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES 2 of 6
112	112	11 Executive Office of Housing and Livable Communities
113	113	12 7004-0101. Emergency Assistance Family Shelters and Services...............$215,000,000
114	114	13 Emergency Housing and Community Fund..........................100%
115	115	14 SECTION 2A. To provide for certain unanticipated obligations of the commonwealth, to
116	116	15provide for an alteration of purpose for current appropriations, and to meet certain requirements
117	117	16of law, the sums set forth in this section are hereby appropriated from the General Fund unless
118	118	17specifically designated otherwise in this section, for the several purposes and subject to the
119	119	18conditions specified in this section, and subject to the laws regulating the disbursement of public
120	120	19funds for the fiscal year ending June 30, 2024. Except as otherwise stated, these sums shall be
121	121	20made available through the fiscal year ending June 30, 2025.
122	122	21 EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE
123	123	22 Reserves
124	124	23 1599-0709. For state financial assistance in the form of grants or loans to be administered
125	125	24by the executive office of housing and livable communities for the following purposes: (1)
126	126	25accelerating the development and production of affordable housing for families; provided, that
127	127	26the grant or loan program shall be administered by the executive office of housing and livable
128	128	27communities; provided further that not less than 25 per cent of the funds used for such purpose
129	129	28shall be used to fund projects that preserve and produce housing for families and individuals with
130	130	29incomes of not more than 30 per cent of the area median income, as defined by the United States
131	131	30Department of Housing and Urban Development; provided further, that funds expended for such
132	132	31purpose shall, to the maximum extent feasible, be prioritized for projects that address the crisis 3 of 6
133	133	32of unhoused families in the commonwealth; (2) for state financial assistance in the form of grants
134	134	33for projects undertaken pursuant to clause (j) of section 26 of chapter 121B of the General Laws,
135	135	34with priority for projects addressing critical capital needs including expired fire alarm systems,
136	136	35housing, ventilation and air conditioning systems and projects increasing accessibility of housing
137	137	36units for persons with disabilities; (3) for state financial assistance in the form of grants to
138	138	37address cost overruns in projects receiving funding under a demonstration program to
139	139	38demonstrate cost effective revitalization methods for state-aided family and elderly-disabled
140	140	39public housing that seek to reduce the need for future state modernization funding; provided
141	141	40further, that the executive office may exempt a local housing authority recipient of demonstration
142	142	41grants from the requirements of chapters 7C and 121B of the General Laws upon a showing by
143	143	42the recipient that such exemptions are necessary to accomplish the effective revitalization of
144	144	43public housing and shall not adversely affect public housing residents or applicants of any
145	145	44income who are otherwise eligible; and (3) for the Massachusetts Housing Finance Agency
146	146	45established by section 3 of chapter 708 of the acts of 1966, to capitalize a permanent, revolving
147	147	46Residential Production Momentum Fund for the purpose of accelerating the development of
148	148	47mixed-income and workforce multifamily housing production projects by providing financial
149	149	48assistance in the form of innovative, low-cost, and flexible capital funding, which may be in the
150	150	49form of debt, equity, or other instruments, depending on individual underwriting needs of the
151	151	50project; provided that not less than 20 per cent of the units in a project that receives financial
152	152	51assistance from such Residential Production Momentum Fund shall be restricted to households
153	153	52with incomes generally between 60 per cent and 120 per cent of area median income; provided
154	154	53further that, notwithstanding paragraph (f) of section 5 of said chapter 708, the Massachusetts
155	155	54Housing Finance Agency may in its discretion set the term and prepayment options for any 4 of 6
156	156	55mortgage or other loan or instrument issued to any project receiving such financial assistance
157	157	56based on the individual underwriting needs of the project; provided further, that financial
158	158	57assistance for any of the purposes in this item shall be awarded in a manner that promotes
159	159	58geographic equity; and provided further, that funds expended from this item for new construction
160	160	59or substantial rehabilitation shall, to the maximum extent feasible, be prioritized for projects that
161	161	60comply with decarbonization and sustainability standards; provided, that prioritization will be
162	162	61determined through objective scoring criteria in the Qualified Allocation Plan developed by the
163	163	62executive office of housing and livable communities; provided further, that for new construction
164	164	63projects, the applicable standards for prioritization are set forth in the commonwealth’s Opt-in
165	165	64Specialized Energy Code set forth at 225 CMR §§ 22.00 and 23.00 and Enterprise Green
166	166	65Communities standards; provided further, that any new construction or substantial rehabilitation
167	167	66project proposing less than full compliance with said standards shall provide detailed analysis
168	168	67demonstrating why full compliance would render the project infeasible notwithstanding
169	169	68utilization of all available federal and state incentives, including rebates and tax credits; provided
170	170	69further, that for retrofits of existing units, prioritization shall be given to projects that include
171	171	70energy efficiency and electrification decarbonization measures, including, but not limited to
172	172	71electric or ground source heat pumps, net-zero developments, Passive House or equivalent
173	173	72energy efficiency certification, and all-electric buildings and projects that incorporate green,
174	174	73sustainable and climate-resilient elements; provided further, that projects that include lower
175	175	74embodied carbon construction materials and methods shall be further prioritized; and provided
176	176	75further that, in the event of a deficiency identified by the secretary of housing and livable
177	177	76communities in item 7004-0101 of the state budget, funding in this item may be transferred to
178	178	77said item 7004-0101 …………………………………$150,000,000 5 of 6
179	179	78 Emergency Housing and Community Fund..........................100%
180	180	79 1599-1213 For purposes related to supportive services and safe shelter for unhoused
181	181	80families in Massachusetts, including but not limited to immigrant and refugee health services and
182	182	81community supports, public and community health services and personnel, medical interpreter
183	183	82services, childcare and safety equipment, and other related services, supports, and programs for
184	184	83unhoused families; provided further, that the secretary for administration and finance shall
185	185	84submit monthly reports to the house and senate committees on ways and means detailing the
186	186	85expenditure of funds from this item; provided, further that any reporting required under item
187	187	861599-0514 under section 2A of chapter 77 of the acts of 2023 shall meet any reporting
188	188	87requirements under this item................................................................$10,000,000
189	189	88 SECTION 3. Chapter 29 of the General Laws, as appearing in the 2022 Official Edition,
190	190	89is hereby further amended by inserting after section 2DDDDDD the following new section:-
191	191	90 Section 2EEEEEE. There shall be established and set up on the books of the
192	192	91commonwealth a separate fund known as the Emergency Housing and Community Fund. The
193	193	92fund shall be credited with any appropriations or other money designated to be credited to the
194	194	93fund and interest earned on any amounts deposited in the fund. administered s, and shall be
195	195	94Amounts credited to the fund shall be expended, subject to appropriation, to support, as deemed
196	196	95necessary by the secretary of administration and finance, in consultation with the secretary of
197	197	96housing and livable communities, housing production, shelter and related services, and supports
198	198	97for unhoused families. The fund shall not be subject to Section 5C of Chapter 29 of the
199	199	98Massachusetts General Laws. 6 of 6
200	200	99 SECTION 4. Section 2EEEEEE of chapter 29 of the General Laws, as inserted by
201	201	100section 3, is hereby repealed.
202	202	101 SECTION 5. Notwithstanding any general or special law to the contrary, for fiscal year
203	203	1022024 and fiscal year 2025, the secretary for administration and finance may authorize transfers of
204	204	103surplus among and within 1599-0514, 1599-0709, 1599-0924, 1599-0925, and 1599-1213.
205	205	104 SECTION 6. Notwithstanding any general or special law to the contrary, not later than
206	206	10510 days after the effective date of this act, the comptroller of the commonwealth shall transfer
207	207	106the amount of $873,000,000 from the Transitional Escrow Fund established in section 16 of
208	208	107chapter 76 of the acts of 2021, as amended by section 4 of chapter 98 of the acts of 2022, to the
209	209	108Emergency Housing and Community Fund established in section 2EEEEEE of chapter 29 of the
210	210	109General Laws, as inserted by section 3; provided, further that not later than July 10, 2024, the
211	211	110Comptroller shall transfer the unobligated balance as of June 30, 2024 from the Transitional
212	212	111Escrow Fund established in said section 16 of said chapter 76 to the Emergency Housing and
213	213	112Community Fund established in said section 2EEEEEE of said chapter 29, as inserted by section
214	214	1133.
215	215	114 SECTION 7. Notwithstanding any general or special law to the contrary, not later than
216	216	115July 1, 2025, the Comptroller shall transfer any unexpended funds in the Emergency Housing
217	217	116and Community Fund established in section 2EEEEEE of chapter 29 of the General Laws, as
218	218	117inserted by section 3, to the Transitional Escrow Fund established in section 16 of chapter 76 of
219	219	118the acts of 2021, as amended by section 4 of chapter 98 of the acts of 2022.
220	220	119 SECTION 8. Section 4 shall take effect July 1, 2025.