40B Housing is a section of Massachusetts’ Affordable Housing Law that was enacted in 1969.

This law emerged after state legislators recognized the numerous hurdles associated with constructing affordable housing. Prior to the introduction of 40B housing, virtually no initiatives existed to address affordable housing needs.

Since then, the law has facilitated the creation of over 58,000 housing units for individuals, families, veterans, seniors, disabled individuals, and families with special needs throughout Massachusetts.

The chapter allows developers to operate under more lenient zoning bylaws, enabling the expansion of affordable housing options in local communities. Essentially, the provisions of 40B housing come with more flexible zoning laws in exchange for a commitment that at least 20 to 25% of the units will be subject to long-term affordability restrictions.

It’s important to note that Chapter 40B does not permit developers to bypass state and federal statutes and regulations, including those that ensure environmental protections at both state and federal levels.

Qualifying for 40B Housing

If you’re interested in 40B housing, there are specific eligibility requirements you must meet. To qualify, you should:

• Have an income that falls within established limits
• Be a first-time homebuyer, though there are a few exceptions (See exceptions below)
• Use the home as your primary residence
• Consent to a deed restriction outlining your responsibilities as an affordable unit owner
• Have assets that do not exceed $75,000

** Personal property, such as vehicles and furniture, is not included in your asset calculations.**

Home Owner Exceptions

In certain scenarios, individuals and families who are not first-time homebuyers can qualify for 40B housing. These exceptions typically apply in the following situations:

• Single parents, or those legally separated and either pregnant or having full or joint custody of one or more children.
• Families that include at least one member aged 55 or older.
• Displaced homemakers, such as a stay-at-home parent who is unemployed and lacks spousal support.
• An individual or family that previously owned property that did not comply with local or state building codes, where the cost of compliance outweighs the expense of acquiring a new property.

Income Limits for 40B Housing

The income limits for 40B housing differ by location. Similar to programs like Section 8, 40B housing calculates these limits based on the area’s median income.

Each year, HUD updates the median income figures for various areas and publishes them on their website. To check your area’s median income, click HERE.

Instructions:

After the page loads, you can select median income charts for either individuals or families. Pick the category that matches your situation. Once the following page appears, choose your state and county to view your area’s information.

Applying for 40B Housing

The application process for 40B housing varies depending on your chosen location. Initially, you need to find a unit that qualifies under 40B housing.

You can discover 40B housing units through realtor websites, local classified ads, or by consulting realtors in your area.

When a unit is listed as part of 40B housing, it should be mentioned in the advertisement, and the application form is typically included. Ensure you complete all information according to the provided instructions both accurately and thoroughly.

Even minor inaccuracies can result in application denial. Make certain to have all documents ready that substantiate the information you’ve furnished in your application.

You also need to secure pre-approval from a mortgage lender. This step is crucial, as applications without it will be rejected.

The Citizens’ Housing & Planning Association, known as CHAPA, operates a user-friendly website designed to assist individuals in finding affordable housing across Massachusetts.

Simply click on the area you’re interested in on the Massachusetts map to get directed to a listing of all available units in that region. Click HERE to access the CHAPA website.

Keep in mind that affordable housing is distinct from low-income housing.

40B housing stipulates that individuals or families must earn no more than 80% of the area’s median income, which can be relatively high in some regions.

So, is 40B housing the right choice for you? That’s a decision you’ll need to make. However, we can affirm it represents a valuable opportunity for those who qualify and are looking to buy their first home.