BOSTON (WHDH) - The Baker-Polito administration on Friday unveiled a $275 million relief package that is designed to promote equity and generate economic growth by making more affordable housing available and investing in small businesses amid the coronavirus pandemic.
Gov. Charlie Baker said the proposal — an update to the “Act Enabling Partnerships for Growth” — represents a targeted package of investments across three core areas: housing, community development, and business competitiveness.
In response to the dramatically different economic landscape due to the pandemic, Baker said his administration will ask lawmakers to consider an amended scope for several of the proposed programs, reallocate funding among proposed authorizations, and establish new tools to promote equity and drive economic growth. The details are as follows:
- Amend the scope of several proposed programs, to target funding towards specific communities including those hardest hit by COVID-19
- Reallocate funding among proposed authorizations, to better address the significant economic impacts of COVID-19 and to help provide a path for recovery, particularly for those most devastated by the pandemic
- Establish new tools to promote equity and drive economic growth in communities and among businesses facing barriers to entry in areas like state contracting
In order to do so, Baker is proposing allocating an additional $15 million for neighborhood stabilization (for a total of $40 million) to invest in blighted and distressed homes. He said the funding would bring safe, affordable housing units back on the market.
“By funding more affordable housing, implementing critical zoning reform, stabilizing neighborhoods, and supporting minority-owned businesses with record levels of funding, these proposed changes will bring critical relief and promote equity across Massachusetts amidst the COVID-19 pandemic,” Baker said. “We look forward to working with our partners in the Legislature to advance this legislation and give communities, especially those most in need, the tools and support they require to move forward.”
To allow the state to invest in more small businesses overall, especially those owned by underrepresented populations, and to leverage greater federal and private investment dollars, Baker is recommending increasing funding for Community Development Financial Institutions by $25 million (for a total of $35 million).
To address the disproportionate challenges to accessing early-stage business financing, Baker said he is also asking lawmakers to triple funding for grants to support micro-businesses from a total of $5 million to $15 million.
“We have an opportunity with this 5-year plan to focus even more of our housing, community development, and business competitiveness efforts on equity and recovery as Massachusetts continues to weather the impacts of the COVID-19 pandemic,” Secretary of Housing and Economic Development Kennealym said. “This legislation and our recommended updates tackle the housing crisis through targeted reforms and funding, and invests in the people and places who need support the most, and we look forward to getting this done.”
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