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HD 695

An Act encouraging home ownership by establishing a first time home buyers savings account

194th Legislature (2025-2026) Introduced by Thomas Moakley

Massachusetts bill creates tax-advantaged savings accounts for first-time home buyers to help accumulate down payments and closing costs.

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Bill Summary · HD 695

Legislative bill overview

HD 695 establishes a tax-advantaged savings account specifically designed for first-time home buyers in Massachusetts, allowing them to set aside money for down payments and closing costs with preferential treatment. The bill aims to reduce barriers to homeownership by making it easier for residents to accumulate the capital needed to purchase their first home.

Why is this important

Housing affordability is a significant challenge in Massachusetts, where median home prices substantially exceed the national average. By creating a dedicated savings mechanism with tax incentives, the bill attempts to address wealth-building obstacles that prevent many residents—particularly lower and middle-income households—from achieving homeownership.

Potential points of contention

  • Cost to state revenue: Tax incentives for these accounts represent foregone tax revenue; critics may question whether the fiscal impact justifies the benefit, and whether funds could be better spent on direct assistance or housing supply increases
  • Equity concerns: The program may primarily benefit middle-income households already capable of saving; lower-income residents facing immediate expenses may be unable to take advantage, potentially widening homeownership gaps
  • Market effectiveness: Questions about whether savings incentives address the root problem (insufficient housing supply and high prices) versus treating symptoms; some argue investment in development would be more impactful

Compiled from official sources — confirm details with the bill’s official record.

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