Massachusetts is providing $1.9 million in grants to support the development of year-round housing in its seasonal communities, aiming to address the housing challenges faced in areas heavily impacted by tourism. The funding was announced on Tuesday by Governor Maura Healey’s administration and will be distributed across all 24 communities officially designated as seasonal in the state, including towns on Cape Cod, the Islands, and in Berkshire County.

The grants are intended to advance projects that could collectively add up to 594 year-round housing units. Lieutenant Governor Kim Driscoll emphasized the importance of flexible, locally tailored solutions to the diverse housing needs of these communities, which rely on families, small businesses, and year-round workers.

The bulk of the anticipated housing gains are expected from early-stage projects on Cape Cod. Wellfleet received $69,800 to conduct a feasibility study on converting a campground into affordable and workforce housing, potentially providing up to 250 units. Truro was awarded funding to support pre-construction work on a wastewater treatment facility at the Walsh Property, a step toward creating 160 housing units. Meanwhile, Falmouth secured the largest single grant of $150,000 to build 46 new affordable housing units.

Additional grants were allocated for smaller-scale projects, including Eastham’s $78,800 for pre-development of affordable housing through the conversion of the Beach Plum Hotel into four units, and $59,500 awarded for site preparation on town-owned land with the potential for six future units.

The seasonal community designation was expanded and formalized through a 2024 housing law, which recognizes municipalities with significant seasonal employment fluctuations and substantial proportions of seasonal housing. This law automatically includes all towns in Dukes and Nantucket counties, Barnstable County towns with more than 35 percent seasonal housing, and Berkshire County municipalities where seasonal housing exceeds 40 percent. Some communities can also opt in through a vote.

The Seasonal Communities Grant Program is part of the administration’s five-year Capital Investment Plan, with $2 million allocated annually for fiscal years 2026 and 2027. Funding is distributed based on a population-weighted formula. The first round earlier this year directed $1.9 million exclusively to 14 Cape and Islands communities, as no Berkshire County towns had opted into the seasonal designation by that time.

This current round marks the first opportunity for Berkshire County towns to participate. Six Berkshire communities received a combined $420,460—approximately 22 percent of the total funding—projected to support 40 year-round housing units, or about 6.7 percent of the total units envisaged across all towns. Representative Leigh Davis of Great Barrington noted that the grants will help retain young people and working families who risk being priced out, ensuring the long-term vitality of these communities.