The MBTA Communities Act: A Costly, Unfunded Mandate For Towns
On February 21, 2025, the Massachusetts State Auditor’s Office determined that the MBTA Communities Act is an unfunded mandate, placing a financial and administrative burden on cities and towns without providing necessary state funding. This ruling has significant implications for municipalities, particularly those already struggling with limited resources.
What Is the MBTA Communities Act?
The MBTA Communities Act requires towns and cities near MBTA transit services to create zoning districts that allow multi-family housing by right—meaning developers can build without needing special permits. These zoning districts must:
Be located near public transit stations (commuter rail, subway, ferry, or bus).
Allow at least 15 housing units per acre.
Permit multi-family housing without age restrictions (must be suitable for families with children).
The law aims to increase housing availability, particularly near public transit. However, it places the burden of implementation entirely on local governments without adequate state support.
Why Is It an Unfunded Mandate?
Under Massachusetts law, an unfunded mandate is a state-imposed requirement that forces local governments to spend money without providing the necessary funding. The Auditor’s Office determined that:
Towns are required to change their zoning laws, which involves legal fees, planning consultants, and administrative costs.
Infrastructure upgrades (roads, sewer, water, schools, emergency services) may be necessary, but the state did not allocate direct funding for these expenses.
The law was not voluntary—it was imposed on towns without their approval, making it a true mandate under the Local Mandate Law.
The state did not provide funding when the law was passed, meaning towns are expected to comply out-of-pocket or risk losing state grants.
What Happens If a Town Doesn’t Comply?
Towns that fail to comply with the MBTA Communities Act lose eligibility for several important state funding programs, including:
The Housing Choice Initiative, which rewards communities that build new housing.
The MassWorks Infrastructure Program, which funds local infrastructure projects.
The Local Capital Projects Fund, which supports community improvements.
For many towns, losing these funding sources could mean delayed road repairs, halted infrastructure projects, and fewer resources for schools and public safety.
Legal and Financial Implications for Towns
This ruling opens the door for cities and towns to challenge the law in court. Under the Local Mandate Law, a town may petition the Superior Court to be exempt from compliance until the state provides full funding. However, legal battles can be expensive, adding another financial strain to local governments.
Additionally, towns that do comply may need to raise local taxes or cut other services to afford zoning changes and infrastructure improvements. This could lead to political and community pushback, as residents question whether state housing policies should come at the expense of local budgets.
What’s Next?
The Auditor’s Office is conducting further research to determine the full financial impact of the MBTA Communities Act on towns. Meanwhile, municipalities must decide whether to fight the mandate, comply under financial duress, or push for state funding.
This ruling should serve as a wake-up call for local officials and residents. The state is pushing housing development policies onto municipalities without providing the necessary financial support, forcing towns to either bear the cost themselves or risk losing essential state funding. As discussions continue, communities must advocate for fair funding solutions that ensure both housing growth and municipal stability.
Final Thoughts
The MBTA Communities Act may have been designed to address the state’s housing crisis, but forcing towns to comply without financial assistance is not a sustainable solution. Towns must now weigh their options carefully—whether to challenge the law, demand state funding, or comply at a significant cost. The coming months will be critical in determining how this mandate will shape the future of zoning, development, and local governance in Massachusetts.