Housing Policy Update: State Zoning Reforms, Mass Wins Act & Federal Housing Law
NAIOP's 2026 Advocacy Alerts are generously supported by Issues Management Group and Pierce Atwood LLP.
There have been several updates relating to housing policy in the past week.
| FY27 Budget Includes Zoning Reforms On July 9, Governor Maura Healey signed off on the Fiscal Year 2027 state budget. The final enacted language includes several NAIOP-supported amendments to the Zoning Act in Sections 40 through 49. Section 45 lengthens the zoning freeze protecting building permits from later zoning changes from 12 to 24 months. The clock now starts once the final permit is obtained, and it pauses while other approvals are pending. Special permits and site plan approvals are protected under their own separate three-year freeze. In addition, Section 47 replaces the long-standing variance standard with a broader “practical difficulty” test. Previously, applicants had to show a hardship tied specifically to a property’s soil, shape or topography. Now, boards must simply find that strict enforcement would cause practical difficulty. Permit-granting authorities should weigh the benefit to the applicant’s and public’s benefit – including housing production – against potential harm to the neighborhood. Boards may also consider other factors like financial hardship or feasible alternatives, but these are optional. Of note, boards aren’t obligated to exercise this new flexibility. The law expands what municipalities can do, not what they must do. The amendment also doubles the window to act on a granted variance from one year to two. NAIOP has supported these provisions throughout the legislative session and was pleased to see their enactment in the FY27 Budget. |
House Releases Updated Economic Development Bill
On July 9, the House finalized a $561 million economic development bill, An Act Relative to Economic Development in The Commonwealth, otherwise known as the Mass Wins Act.
NAIOP was pleased to see that the House bill included NAIOP-supported language on Site Plan Review, commercial conversion districts, and clarifying the appeals process for the state’s energy codes. The House also adopted other critical provisions during debate, including a two-year extension of the 2024 Permit Extension Act, an expansion of the Housing Development Incentive Program (HDIP) annual award, and Yes in God’s Backyard, which allows the by-right construction of multifamily housing on land owned by religious organizations.
NAIOP was also happy to see adoption of language replacing the Urban Housing TIF with a local-only housing TIF. The new program would allow municipalities to approve local incremental property tax relief for multifamily projects with no additional state oversight or approval required.
Unfortunately, during debate the House adopted amendments allowing Tenant Opportunity to Purchase (TOPA) and extending Project Labor Agreements (PLA) to certain types of offsite construction.
NAIOP is working with other industry groups to oppose these provisions in the Senate and throughout the remaining legislative process.
Bipartisan 21st Century ROAD to Housing Act Becomes Law
On July 10, the 21st Century ROAD to Housing Act became law. The bill includes a range of housing reforms aimed at boosting supply and affordability: it rewards communities that allow more housing, eases environmental review for infill development, expands manufactured housing options, and strengthens rental assistance and housing preservation programs.
Importantly, the final language did not include the problematic build-to-rent provisions introduced in the Senate. As a member of a national coalition for housing production, NAIOP opposed the inclusion of these provisions and was pleased to see the final bill did not reflect this language.
The NAIOP Advocacy Team is working on numerous initiatives at the state and local level. If you have questions regarding these, or other topics, please feel free to reach out to NAIOP's CEO Tamara Small or NAIOP's Government Affairs Assistant, Lucy Abdow