REPRESENTATIVE ELDRIDGE GIVES MAIDEN SPEECH ON CHANGES TO CHAPTER 40B, AFFORDABLE HOUSING ALTERNATIVES

Monday, May 10, 2004, Boston – Representative James B. Eldridge (D-Acton) today delivered his maiden speech – a member’s first major address before the entire 160 House membership – on proposed legislative changes to affordable housing laws in the Commonwealth.  These changes include major reforms to the state’s Comprehensive Permit Law, Chapter 40B, that should offer relief to towns in the 37th Middlesex District facing the prospects of Chapter 40B developments, while also encouraging the development of affordable housing in suburban towns, on their own terms.  “I rise today to speak out in support of the proposed changes to Chapter 40B because of the clear housing crisis in the Commonwealth of Massachusetts, the need for a more positive working relationship between state and local governments to build more affordable housing, and my professional and personal experiences in the area of housing” began Eldridge in his address to his House colleagues. 

Representative Eldridge noted his housing experience previous to serving in the Legislature, including working as a public interest attorney for Merrimack Valley Legal Services in the city of Lowell, and serving as chair of the Acton Housing Authority.  Eldridge also pointed out, “On a more personal note, I have observed how most of the people I grew up with in Acton have been unable to afford to purchase a house in our hometown, and how housing has fast become a problem for the middle class.” 

Representative Eldridge praised the House’s changes to the state Chapter 40B law.  These changes include double-counting affordable homeownership units towards the state ten percent requirement, exempting towns from 40B developments if they build more than one-half of one percent of affordable housing per year or if they create an adequate housing master plan, counting 50% of mobile homes as affordable, and encouraging regional housing efforts between towns. 

 In addition, the House of Representatives passed three other bills to address the state’s housing crisis. 

The first bill extends and doubles the Commonwealth’s low income tax credit to build and preserve affordable housing throughout the state.  Adopted in 1999, low income tax credits have been a successful formula to advance affordable housing construction. Through the program the Commonwealth has help subsidize roughly 1,800 units of affordable housing.

Allowing all municipalities to create their own affordable housing trust funds, the language in the second bill enables for local option to establish an affordable housing trust fund, allowing cities and towns to choose an array of options to providing funds toward affordable housing such as buying or selling land, mortgage financing, or capital debt financing, just to name a few options.  “This bill will give towns and cities yet another tool to build affordable housing,” commented Representative Eldridge.

The final proposal debated by the House will expands the state’s “Soft Second” Mortgage Program for first-time homebuyers and middle class families.  The Soft Second Mortgage Program is a 13-year old public-private partnership designed to insure private mortgages at a very low foreclosure and delinquency rate.  The proposal before the house today looked at taking two pronged approach to enhancing this successful program by allowing access to funds from House Stabilization Fund capital form the 2002 Housing Bond Bill, as well as create an appropriation in the state’s budget to provide wiggle room in the state’s budget should the program fall slightly short on recapturing the money spent on these mortgages.

Eldridge ended his remarks by reminding his colleagues of the importance of housing to the people of the Commonwealth of Massachusetts, and the need to continue to work together to solve the state’s housing crisis.  “Let’s not forget that we are also here today, and every other day, to protect and ultimately improve the quality of life for all of our constituents, regardless of their level of income.  Making sure that each member of the public has a roof over his head, while maintaining the opportunity for all citizens to help realize the American dream of owning their own home should always be our goal”

All four bills passed unanimously across partisan lines, with the exception of one dissenting vote on the proposed changes to Chapter 40B.  State Representative Kevin Honan (D-Brighton), House chairman of the Joint Committee on Housing and Urban Development said after the bills being passed, “This really encourages communities to take control of their destiny and really plan," said Honan (D-Boston). “This bill creates fundamental fairness to those communities who think they were being outgunned by big developers.”