For many Massachusetts families, homeownership is becoming increasingly difficult to maintain — not just because of rising housing costs, but because the cost of maintaining a home has become unaffordable. Whether it's replacing a failing heating system, repairing a crumbling concrete foundation, installing flood mitigation measures, or investing in energy-efficient upgrades that lower monthly utility bills, too many homeowners face an impossible choice: take on expensive debt, delay necessary repairs, or watch their home's condition worsen.
This summer, the Massachusetts Senate took an important step toward addressing that challenge by passing a local-option Residential Property Assessed Clean Energy (Residential PACE) program as part of an economic development bond bill.
I originally filed Residential PACE as a piece of legislation in February of 2025 – an idea that comes from years of dedicated work on housing reform and affordability initiatives. This year, the language was then added as an amendment to the Senate’s economic development bond bill – where it collected 22 co-sponsors from my colleagues and garnered bipartisan support. It was officially passed on July 24th – an exciting win – and now sits in a conference committee to reconcile differences between House and Senate versions before heading to the Governor’s desk for signature.
Residential PACE is not a grant or a new tax. It is another financing option for homeowners who may have exhausted traditional lending opportunities or been denied the ability to refinance their homes. Rather than paying the full cost of qualifying improvements upfront, eligible homeowners can finance projects through a betterment assessment that is repaid over time as part of their property tax bill. Because the assessment is attached to the property instead of the individual homeowner, it can transfer if the home is sold, making long-term investments more manageable and accessible.
For many families, this flexibility can make all the difference.
Across the Commonwealth, homeowners are struggling with repairs they simply cannot afford. In some communities, deteriorating concrete foundations threaten the safety and value of entire neighborhoods. Elsewhere, homeowners know that installing flood protection, improving energy efficiency, conserving water, or adding renewable energy systems would save money over time, but the upfront costs remain out of reach. Delaying these investments often leads to even higher repair costs down the road while increasing household energy expenses and leaving homes more vulnerable to extreme weather.
Residential PACE helps bridge that gap.
Importantly, the State Senate's approach recognizes that every community has different needs. Rather than imposing a statewide mandate, the legislation allows municipalities to decide for themselves whether to participate. This local-option model gives cities and towns the flexibility to determine whether Residential PACE makes sense for their residents while allowing them to choose appropriate program administrators. State oversight through MassDevelopment or another designated agency would help ensure consistent rules, transparency, and responsible implementation across participating communities.
Just as important, the Senate included robust consumer protections modeled after CFPB-regulated PACE programs. The legislation requires ability-to-repay standards, clear disclosures, cancellation rights, contractor oversight, mortgage-holder notification, seller disclosure requirements, and annual reporting. These safeguards ensure that homeowners fully understand their obligations and are protected throughout the financing process.
Housing affordability is about more than building new homes. It is also about preserving the homes we already have and giving current homeowners the tools they need to maintain them. Keeping families in safe, energy-efficient homes strengthens neighborhoods, protects property values, reduces utility costs, and helps communities become more resilient in the face of climate change.
Residential PACE will not solve every housing challenge facing Massachusetts. But it is an important tool in the toolbox—a practical solution that removes financial barriers to essential home improvements while respecting local decision-making and protecting consumers.
The conference committee now has an opportunity to include this commonsense policy in the final Economic Development Bill. Massachusetts homeowners deserve access to financing options that allow them to preserve their greatest investment, lower the cost of homeownership, and prepare their homes for the future.
Our communities cannot afford to wait.
Here’s how you can help: Email the conference committee members, or your local state senators and representatives (find them here), and urge the committee to include Residential PACE in the final iteration of the economic development bill.
Conference committee members:
Senator Barry Finegold
Senator Michael Rodrigues
Senator Peter Durant
Representative Aaron Michlewitz
Representative Carole Fiola
Representative Michael Soter