Governor Healey Signs FY2026 Budget: Housing Investments Move Forward, but HCEC Funding Faces Veto

WASHINGTON, D.C. – RealEstateRama – Governor Maura Healey has signed Massachusetts’ $61 billion FY2026 budget, which includes significant housing investments and policy reforms aimed at improving affordability and strengthening housing stability. Overall, the budget maintains or modestly increases funding for key programs, including a boost to the Massachusetts Rental Voucher Program (MRVP) from $219 million to $253.3 million to preserve assistance for existing participants, and $207.5 million for RAFT. Public housing operations received $115.6 million, while the Access to Counsel program was funded at $2.5 million and established as a permanent line item.

Policy shifts in the FY2026 budget include broker fee reform, which shifts the cost to whichever party first hires the broker—eliminating most renter-paid fees and significantly reducing up-front costs for tenants. The budget also advances the goals of the Unlocking Housing Production Act by promoting efforts to accelerate development through easing local barriers and exploring new tools for municipalities. These provisions support housing production through studies on tax incentives, inspection reform, and municipal authority, laying the groundwork for broader permitting and regulatory changes. Additionally, new language in the RAFT and HomeBASE programs directs the state to examine access barriers—such as “notice to quit” requirements and eligibility criteria—with the goal of improving program reach and responsiveness.

At the same time, funding for Housing Consumer Education Centers (HCECs)—which play a critical role in helping residents navigate evictions, access financial counseling, find housing, and utilize voucher programs—was significantly reduced. The Legislature approved $5.85 million for HCECs, already a 34.8% cut from the FY2025 level of $8.974 million. Governor Healey then vetoed $500,000 from that amount, lowering the final FY2026 allocation to $5.35 million. In FY2024, HCECs served more than 75,000 households statewide at an average cost of just $116 per household. With demand for services rising, the reduction in funding raises concerns about the capacity to support residents facing urgent housing challenges. CHAPA has submitted a letter urging the Legislature to override the Governor’s veto, emphasizing the need to restore critical funding to ensure these frontline services remain available as Massachusetts works to meet both immediate housing needs and long-term production goals.

You can view CHAPA’s full Budget Tracker here

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Jordan Stocker