🏡 Massachusetts Taps $140M to Build Affordable Homes and Transform Vacant Buildings — Here’s What You Need to Know

Massachusetts just took a huge step forward in tackling two of the state’s thorniest challenges at once: housing affordability and under-used commercial real estate. On Tuesday, February 17, 2026, Governor Maura Healey announced a more than $140 million investment aimed at creating new housing and breathing new life into rundown buildings across the Commonwealth.

Why it matters: the state isn’t just building units — it’s targeting affordability and vitality in downtown areas from Boston to Pittsfield. That means more homes, more economic activity, and more opportunities for people who have been priced out or left out of today’s tight housing market.

💰 A Two-Pronged Strategy

The funding is split between two major programs that will support housing creation:

1. Affordable Housing Development Grants

• Nearly $139.5 million goes toward this initiative, backing 15 rental housing developments statewide.

• These developments will produce 1,008 total homes, with 903 affordable units — including 284 set aside for extremely low-income households.

• Many of these units will serve individuals and families transitioning out of homelessness or struggling with steep market rents.

  
  

The money comes through a blend of federal and state tax credits and subsidies, strategically layered to make these projects financially viable while keeping rents affordable.

🏢 Turning Underused Commercial Space Into Homes

Beyond traditional new builds, Massachusetts is innovating by repurposing empty or under-utilized commercial buildings in downtowns into residential housing through Commercial Conversion Tax Credits:

Here’s a snapshot of the projects already funded:

• 150 Milk Street, Boston – 18 new homes in the Financial District with retail and amenity space.

• Main Street Lofts @ 280, Fitchburg – 35 units transforming a historic downtown office building.

• 4586 Acushnet Street, New Bedford – 65 homes in a former nursing home building.

• 24-34 North Park Square, Pittsfield – 23 units with retail and commercial kitchen space.

• One Chestnut, Worcester – 198 homes in a major downtown conversion.

  
  

Together, these conversions will add 339 homes to the local housing stock — a big deal in places where empty buildings can drag down economic energy and vibrancy.

🌆 What This Means for Massachusetts Communities

This initiative goes beyond just creating homes — it’s an economic development tool:

• Downtown Revitalization: Filling empty storefronts and offices with residents brings foot traffic, supports local businesses, and breathes life into historic city centers.

• More Housing Options: By focusing on very low-income households and people transitioning from homelessness, the state is addressing the widest gap in today’s housing market.

• Preservation + Innovation: Many projects include historic tax credits or reuse existing structures, blending preservation with modern needs.

  
  

🧠 Final Take: A Step in the Right Direction

For anyone tracking the Massachusetts housing landscape — whether buyers, renters, developers, or community advocates — this funding push lays groundwork for meaningful change. It reflects a growing recognition that solving housing crunches means creative funding, adaptive reuse, and targeted policy.

If you’re curious how these developments might impact your community or what opportunities they create for investors and residents alike, stay tuned — this is just the first round of funding under the state’s broader Affordable Homes Act.