Cape Codders will soon be able to add housing to the region and supplement their income at the same time, two very welcome opportunities in our region. On February 2, 2025 the Massachusetts’ Affordable Homes Act goes into effect with a wide range of new regulations and funding aimed at solving the housing challenges that plague the state. The crisis is especially dire in communities like Cape Cod which depend on tourism as their primary industry. In 2024, the median sale price for a home in Barnstable County was over $700,000 and scarce year-round rentals cost 65% higher than the national average, putting year-round Cape Cod residency out of reach for most people. The Affordable Homes Act aims to solve that by coming at the problem from multiple angles.

The two most impactful changes for Cape Cod are: Accessory Dwelling Units by right and Seasonal Communities Designation. In this blog, we will just talk about the ADU part and what it means for Cape Codders:

ADUs by Right:

While every town on Cape Cod already had some provision allowing ADUs, they were not consistent, made the process cumbersome and expensive, and had little impact. The rew regulation creates consistency and reduces friction, time, and expense for homeowners.

• It eliminates the need for a special permit or other discretionary approval.

• Eliminates the requirement for the owner to live in one unit, allowing investors to create multiple units rather than restricting them to one.

• Cannot require more than one parking space (zero spaces if it’s within ½ mile of public transport). This removed a big roadblock for folks trying to create ADUs in densely built communities like Provincetown.

There will still be common sense limits and municipal oversight so that each town can make ADUs work best for their unique communities and fragile ecosystems:

• Units cannot be larger than 900 sqft

• Towns can ask for site plan reviews by their planning boards to look at setbacks, lot coverage, etc.

• ADUs can be restricted to year-round use

• Setback requirements can be increased or decreased

• Size and height can be regulated

• Reasonable restrictions around Title 5 septic regulations may be imposed

Our clients want to know what the opportunities are. Our answer: To be determined. The potential benefits to all are huge, but it will depend a lot on how each town implements the new regulations and funding. While we are very excited about the possibilities, we’re advising our clients to wait 6 months or so for their town to adapt to the new regulations and get a few ADUs under their belt. This will give time for best practices to surface and create a roadmap for future projects.

In the meantime, the best bet is to get educated and participate as your town starts implementation. Here are some great resources:

• Affordable Homes Act Fact Sheet This gives a high-level overview of the new regulations and funding, with links to the text of the law.

• Your Cape Cod Town’s Website: Keep an eye on the agendas and minutes of your town’s planning, zoning, and selectboard or town council meetings that address ADUs.

• My Home Plus One is a wonderful program from Housing Assistance Corporation that partners with homeowners through the entire ADU creation process.

Our team is currently working on how ADUs will impact property values and financing. Stay tuned here as we continue to follow this exciting new development for Cape Cod housing!