Governor Healey Launches New Campaign to Make It Easier and Cheaper to Build ADUs Across Massachusetts

Lexington — Governor Maura Healey today announced a new campaign to make it easier and cheaper for people across Massachusetts to build accessory dwelling units (ADUs). ADUs, also known as granny flats or in-law apartments, are small residential living spaces that are located on the same lot as another home. Governor Healey’s Affordable Homes Act allowed ADUs to be built-by-right in single-family zoning districts statewide, giving communities an effective tool to increase housing production and lower costs.

Today’s announcement took place at the Lexington home of Mark and Linda Adler, who added a detached ADU in their backyard. The Adlers chose to move into the smaller unit themselves, making it possible for their daughter, a local teacher, and her two young children to live in the primary home. Their arrangement illustrates one of the many ways homeowners can use ADUs to stay in their communities, support multigenerational living and create more flexible, affordable housing options.

In the first six months after the law went into effect, cities and towns across the state reported nearly 900 applications for ADUs thanks to statewide simplification of the permitting process. To further build on this progress, the Healey-Driscoll Administration is launching three new initiatives to help Massachusetts homeowners design, finance and build ADUs.

• Design: The Executive Office of Housing and Livable Communities (HLC) will launch its ADU Design Challenge on December 15, offering prize funding through sponsorship partners to generate a set of publicly available, replicable designs that homeowners and communities can use at no cost.
  
• Support: Backed by $10 million from the Governor’s fiscal 2026-2030 Capital Investment Plan, Massachusetts Housing Partnership (MHP) will offer a program to help more homeowners build ADUs.
  
• Finance: Following its recent authorization of $20 million for mission-oriented homeownership activities, MassHousing plans utilize a portion of those funds to introduce affordable, accessible construction financing for low and moderate-income homeowners beginning in 2026.

“ADUs are an effective tool for increasing housing production and lowering costs across the state. They offer opportunities for people to age independently near their loved ones, people with disabilities to stay close to their parents, and young adults to start saving to buy a home,” said Governor Healey. “We’re glad to see hundreds of people take steps to create ADUs thanks to the Affordable Homes Act, and this new campaign will help us build on this progress by making it easier to design, finance and build these homes. Together, we can increase the production of reasonably-priced housing across the state and lower costs for everyone.”

“By empowering homeowners and local municipalities with clear rules and practical support, we’re making it easier for ADUs to become part of the solution to our housing challenges,” said Lieutenant Governor Kim Driscoll. “These new tools will give families more options to stay in their communities, live near loved ones and create opportunities for extra income and increased independence.”

“The Healey-Driscoll Administration is pursuing innovative solutions to our housing shortage. Making it easier to build and finance ADUs is the next step to unlocking more opportunities for homeowners,” said Housing and Livable Communities Secretary Ed Augustus. “The Affordable Homes Act replaced a patchwork of regulations with a fair, statewide framework. Now, by expanding access to high-quality designs, technical assistance and affordable financing, we’re helping homeowners turn that framework into homes that meet their needs.”

Launching December 15, the ADU Design Challenge will invite designers, architects and other design professionals to submit replicable, high-quality ADU prototypes that can be adapted by homeowners and local builders. The Design Challenge will reduce predevelopment costs by making strong designs publicly available, streamline permitting by encouraging compliant designs and promote innovation by including sustainable materials, climate-resilient design, and accessible layouts that support the needs of aging residents and families. The Design Challenge is being sponsored by Eastern Bank Foundation, the Boston Foundation, AIA Massachusetts, and MHP, with roughly $60,000 - $70,000 in sponsor commitments to support the challenge, prizes and outreach. Design winners will be announced late April of next year, and additional details will be released as final design and submission requirements are completed.

In addition to the Design Challenge, the Healey-Driscoll Administration is working to make ADU production more affordable for families who want and need access to the opportunities these homes provide. Supported by $10 million over two years from the Governor’s fiscal 2026–2030 Capital Investment Plan, MHP is developing a statewide ADU Incentive Program to promote ADU construction and support homeowners through the predevelopment and construction process.

The program will also focus on identifying and addressing remaining barriers to ADU development beyond zoning, providing insight for future statewide policy and program design. MHP anticipates this initiative will support the creation of hundreds of ADUs in its first two years and inform the next phase of policy and investment. MHP plans to hold stakeholder information sessions this January with the full program launching in spring 2026.

To further address the financing barriers that can prevent homeowners from constructing an ADU, MassHousing is leveraging its experience as the state’s housing finance and investment bank to develop a new ADU construction loan program. This month, MassHousing authorized up to $20 million for mission-oriented homeownership activities, a portion of which will support the ADU loan program. The program is expected to provide low-cost subordinate mortgage loans designed to finance ADU construction, targeted toward low- and moderate-income homeowners who may not be able to access home equity financing. This financial support is anticipated to be available in early 2026.

The Healey-Driscoll Administration has made housing a top priority, starting with the creation of the Executive Office of Housing and Livable Communities in 2023. Since then, the Administration has initiated a comprehensive approach that includes signing the Affordable Homes Act into law, which was the state’s most ambitious investment in housing in history. The law, together with the administration’s other initiatives such as converting vacant state-owned land into housing, commercial to housing conversions, the MBTA Communities Law, creation of the Momentum Fund, and sizable increases in housing tax credits and subsidies are already delivering results for the people of Massachusetts. As a result, more than 90,000 new homes have been built or are in development since Governor Healey took office.

The Administration is also delivering immediate relief for Massachusetts residents amidst the housing shortage. In addition to supporting ADU development, the Affordable Homes Act gave homebuyers a clear right to a home inspection to identify potential issues or unexpected expenses as they make a major financial decision. Governor Healey also banned forced renter-paid broker’s fees, saving renters thousands of dollars each time they move.

Statements of Support:

Clark Ziegler, Executive Director, Massachusetts Housing Partnership:

"MHP has advocated for ADUs as an effective way to increase housing supply and meet a wide range of housing needs for both communities and residents since the release of our Building Momentum report back in 2023. Since adoption of the AHA, we've supported the Administration's development of ADU Regulations to provide communities and property owners clarity as they move forward, and the creation of the Model ADU Zoning in partnership with MAPC. We're excited to continue to play a role in ensuring ADUs are a piece of the solution in meeting our Commonwealth's housing goals."

Chrystal Kornegay, CEO, MassHousing:

“MassHousing is proud to continue supporting the Healey-Driscoll Administration’s implementation of the Affordable Homes Act. Accessible design, permitting assistance and affordable financing will help remove barriers to ADU construction and empower homeowners to address our state’s housing production crisis and strengthen communities.”

Sean W. Brennan, President, AIA Massachusetts:

“AIA Massachusetts proudly represents more than 3,500 architects and design professionals across the Commonwealth who understand that thoughtful design is essential to addressing our most pressing community needs. We were pleased to assist with the forthcoming ADU Design Challenge by offering targeted design guidance, technical expertise, and statewide insight. As the initiative moves toward its public launch, we are excited to see how it will inspire innovative, accessible, and sustainable solutions while highlighting the vital role well-designed ADUs can play in expanding housing choice and strengthening neighborhoods across Massachusetts.”

Turahn Dorsey, President & CEO, Eastern Bank Foundation:

“At Eastern Bank Foundation, we believe housing stability is a foundation of opportunity. Supporting the ADU Design Challenge is one way we can help bring forward innovative, workable ideas to build affordable homes and strengthen our communities.”

Soni Gupta, Associate Vice President, Programs, The Boston Foundation:

“The Boston Foundation has a long-standing commitment to finding innovative and creative ways to meet the housing needs of everyone who calls the Commonwealth home. ADUs can be powerful part of a wide-reaching strategy to reach our housing goals, and with the Design Challenge and funding to support ADU construction, the Commonwealth is making smart investments in our housing future.”

For general press inquiries, contact MHP Communications Manager Lisa Braxton.