Can ARPA Funds and ADUs Ease Affordable Housing Challenges?

On December 13, 2021, Massachusetts Governor Charlie Baker signed a $4 billion spending plan to support the continued recovery from the COVID-19 pandemic through a combination of American Rescue Plan Act (ARPA) funds and state surplus funds. Among the programs and services funded, the state allocated $500,000 for an accessory dwelling units (ADUs) program to assist in addressing the state’s affordable housing challenges. ADUs (or in-law suites) are one- or two-bedroom additions or standalones added to an existing dwelling unit. The program will primarily provide forgivable loans of up to $10,000 to homeowners who want to build an ADU. Time will tell how successful this new program will be, but it is definitely a creative approach to lessening the affordable housing crisis in Cape Code, Nantucket, and Martha’s Vineyard by the Housing Assistance Corporation. For more on ADUs, please see the link below:

Accessory Dwelling Units (ADUs): 101