Good morning friends,

Something U.S. Rep. Jake Auchincloss told me at our Government Affairs Forum on Monday has been generating a lot of buzz.

I asked him how we could increase housing supply and affordability;  a problem Auchincloss says is the "single biggest economic challenge" facing Massachusetts.

He endorsed three ideas.

First, Auchincloss urged the state to invest more in the Momentum Fund, a $50 million fund established by the Healey administration last year designed to provide flexible financing for stalled mixed-income projects.

Second, he suggested building tens of thousands of homes on state-controlled land, such as decommissioned military bases and prisons. (Although he didn’t mention it by name, I’d add, college campuses.)

Then Auchincloss paused, looked toward the heavens and added:

“The final one, the third rail — I could get struck by lightning here — is the governor can unilaterally change Chapter 40B regulations about what the safe harbor limit is.

“That would be a nuclear option, to be clear, but it would be the kind of stick that could galvanize more local action.”

Video of his comment

As the BBJ’s Greg Ryan explains, Auchincloss was endorsing one of the more controversial of the 50-plus ideas floated by the Gov. Maura Healey-appointed commission’s Unlocking Housing report.

The commission suggested the state could create about 100,000 new homes over the next decade by altering the way cities and towns become exempt from the state’s 40B affordable housing law.

Currently 40B regulations allow market rate homes to be counted towards municipalities’ affordable housing mandate.

But the governor could “unilaterally change Chapter 40B regulations about what the safe harbor limit is,” Auchincloss continued.  

“And that would be a nuclear option, to be clear, but it would be the kind of stick that could galvanize more local action."  

(The Pioneer Institute’s Andrew Mikula explored this idea this week in Banker & Tradesman).

This one change would unlock more opportunities for more multi-family 40B developments in all four of our chamber communities, along with many other cities and towns, that have met their 40B thresholds.

And, yes, it would be very controversial.

Nuclear? That too, given that there are plenty of folks (and some lawmakers too) across the Commonwealth who want to repeal, not strengthen, 40B.

“What Auchincloss proposed is changing the rules that govern which communities are safe from 40B’s reach,” the BBJ’s Ryan writes. “The remarks were notable not only because he was speaking right before Gov. Maura Healey took the stage at the event, but because they touched on a long-simmering debate about 40B’s role in a state that is hundreds of thousands of homes short of meeting demand.”

And what did Healey, who spoke right after Auchincloss, have to say about the idea?

As she has consistently has done throughout her first two years in office, Healey leaned heavily into the need to make housing more affordable by increasing supply during her address on Monday.  

And while the governor has yet to embrace 40B changes or other ideas in the report, she said: “I think that Congressman Auchincloss is right, we should be looking every day for ways to speed this up.”

Link to her comments

• Auchincloss’ full remarks
• Auchincloss’ full Q&A
• Gov. Maura Healey’s full address
• Gov. Maura Healey full Q&A

And that’s what you need to know for today. Be back in your inbox tomorrow.

I value your feedback

Greg Reibman (he, him)

President & CEO

Charles River Regional Chamber

617.244.1688

P.S. Spring Seasonings: A Taste of our Towns is four days away and just hours away from being sold out.