WORCESTER—Mayor Joseph Petty and District 2 City Councilor Candy Mero-Carlson filed an order requesting that the city manager evaluate a potential property tax exemption for landlords who rent units at federally defined affordable rates.
The proposed measure follows the 2023 passage of An Act to Improve the Commonwealth’s Competitiveness, Affordability, and Equity and centers on a newly added provision in state law — Chapter 59, Section 5O — signed by Gov. Maura Healey in October 2024. The law gives municipalities the authority to give property tax breaks to property owners who keep their rentals affordable.
The joint order, filed last week, asks the city administration to assess how and if Worcester could implement this kind of program, and to report back with recommendations.
“This initiative builds on Worcester’s existing direct grant program, which provides financial support to landlords who voluntarily offer below-market rents,” Petty and Mero-Carlson said in the announcement. “However, the new exemption authorized by Section 5O presents a broader policy solution, particularly in support of Worcester’s significant inventory of Naturally Occurring Affordable Housing (NOAH).”
Worcester’s NOAH stock — units affordable to low- and moderate-income households without public subsidy — comprises about 33% of the city’s more than 50,000 rental units, according to the 2024 MassINC Gateway Cities Housing Monitor.
But that inventory is shrinking. Between 2013 and 2022, the number of rental units priced below $1,000 dropped by 7,600, while units priced above $1,500 rose by 12,300 according to the Worcester Housing Production Plan. The number of units costing more than $2,000 increased by nearly 500% during that time, rising from 756 to 4,435 citywide — a shift attributed both to new construction and increasing rents in existing properties.
The announcement also notes that nearly 40% of Worcester households are cost-burdened, spending more than one-third of their income on housing. With the city’s population projected to surpass 230,000 by 2050 and 14,000 new jobs expected by 2034, officials anticipate continued strain on local housing.
Should Worcester implement the proposed tax exemption, it would be among the first municipalities in Massachusetts to utilize Chapter 59, Section 5O — potentially positioning the city as a model for other communities navigating housing affordability challenges.
Have news, tips, or a story worth telling? Reach Editor Charlene Arsenault at carsenault@theworcesterguardian.org—because good stories (and great scoops) deserve to be shared.
- The Worcester Guardian is an independent nonprofit news organization. Support local journalism by making a DONATION today.
