MA S989

Creates a Starter Home Development Fund administered by the Department of Housing and Community Development through a contract with the Massachusetts Housing Finance Agency to subsidize new construction or acquisition/rehabilitation of owner-occupied starter homes

Targets households earning between 80% and 120% of area median income, with total subsidies capped at 35% of eligible development costs

Requires at least 33% of fund allocations go to projects with housing subsidy covenants preserving affordability for a minimum of 99 years

Establishes an advisory committee including representatives from state housing agencies, municipal officials, lenders, developers, housing authorities, and nonprofit housing organizations

Prioritizes projects in starter home zoning districts and those addressing historic inequities in housing lending in communities of color, with selection criteria including energy efficiency, geographic distribution, and depth of affordability