Massachusetts addresses housing affordability through Residential PACE program

Massachusetts is addressing high housing and maintenance costs through legislative efforts and economic analysis. The Massachusetts Senate recently passed a local-option Residential Property Assessed Clean Energy (Residential PACE) program as part of an economic development bond bill. Passed on July 24th, the program is currently in a conference committee to reconcile House and Senate versions before reaching the Governor.

Residential PACE provides a financing option for homeowners to fund necessary improvements, such as heating system replacements, flood mitigation, or energy-efficient upgrades. Instead of upfront costs or traditional debt, homeowners can use a betterment assessment repaid through property tax bills. Because the assessment is attached to the property, it can transfer to new owners upon sale.

These measures come amid significant cost-of-living pressures in the state. Massachusetts maintains some of the highest housing prices in the United States, with a median sale price of $667,628, significantly exceeding the national average. Additionally, the state faces high utility costs, with 2023 retail electricity prices ranking as the fourth highest in the country.