On May 5th, the Baker-Polito Administration released its Five-Year Capital Investment Plan for 2023-2027, which includes its Fiscal Year 2023 Capital Budget. MACDC, as it does every year, reviewed the Capital Budget for housing and for other community development line items of interest to CDCs. You can see our analysis here.
In comparison to FY22, the top line housing budget for FY23 increased by just over $5 million, from $255.6 million to $260.8 million. This understates the increase, as the Legislature enacted, and the Administration signed last December, a bill allocating significant federal funding for housing, including $150 million for supportive housing, $115 for rental housing production, $115 million for homeownership production, $150 million for public housing maintenance, and other related spending. Bottom line- when it comes to the FY23 Capital Budget in relation to prior year capital budgets, we are not comparing apples to apples!
Selected community development programs also received higher amounts in the FY23 Capital Budget than in FY22. Among these selected programs, the budget increased from just over $114 million in FY22 to just under $131 million in FY23, an almost 15% increase. MACDC was pleased to see a significant increase in funding for underused properties but was disappointed that the Brownfields Redevelopment Fund continues to be inadequately funded with just $2.5 million. (There is $30 million of unused capital authorization for the Brownfields program).
It is important to recognize that the small increases referenced above are far below inflation and even further below the increasing costs for construction.
When it comes to affordable housing funding, we need more, much more, to meet the needs of the Commonwealth’s residents. This is why MACDC is advocating with the Legislature to use the once in a generation opportunity presented by the availability of the remaining ARPA funds to support the following:
- $200 million for emergency rental relief, to prevent the displacement of the thousands of MA households still impacted by the economic devastation caused by COVID;
- $320 million to expand homeownership opportunities and close the racial homeownership gap;
- $150 million for rental housing preservation and development, and additional supportive housing for priority populations, to address the crisis in affordable rental housing; and
- $100 million for a new MA Healthy Homes Initiative, to address the tens of thousands of homes in MA still containing dangerous levels of lead paint and address other housing conditions that pose a serious threat to residents’ health and well-being.
MACDC is thankful to the Baker-Polito Administration for its funding of critical affordable housing and community development programs, and for being a partner to MACDC and CDCs in our efforts to create opportunities for all Massachusetts residents. It will be up to the next Governor, the Legislature, and all of us to ensure that we do everything possible to address the unmet needs for affordable housing and inclusive community development, on behalf of all of our neighbors across the Commonwealth.