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After a year-long planning process that engaged community members and experts, the Gloucester City Council approved by a vote of 7 to 0 (2 abstained) the proposed MFOD. The zoning ordinance allows for efficient, small-scale multi-family development and maintains Gloucester's eligiblity for critical state funding that supports infrastructure, affordable housing, and economic growth.
Failure to comply with the State law will result in a loss of State funds and may have legal repercussions.
The State confirmed the proposed MFOD passed by the City Council is compliant with Section 3A (see official notification letter here). If the MFOD is upheld as a result of the special election on April 24, 2025 the City will be in compliance with State law. If the MFOD is not upheld the City will have until July 14, 2025 to enact compliant zoning.
Failure to Comply with the Law Will Make Gloucester Ineligible for Four State Grant Programs
Housing Choice
Housing Choice
Housing Choice grants provide funding for capital improvements such as upgrades to the City’s parks, roads, and infrastructure. The City of Gloucester was awarded $400,000 from the Housing Choice Grant Program in 2025 to support water and sewer infrastructure improvements in the Gloucester Avenue area.
Local Capital Projects
Local Capital Projects
Over 10% of the Gloucester Housing Authority (GHA) budget comes from the Local Capital Projects Fund. This funding is needed to maintain and make upgrades to Affordable Housing owned by the GHA, while providing meaningful services to its residents.
Massworks
Massworks
This program stimulates growth and economic development through infrastructure funding. In past years, the City has received about $6 million from MassWorks for road and sewer improvements.
The City of Gloucester was awarded $500,000 from the MassWorks Infrastructure Program in 2025 to support the required secondary wastewater treatment plant upgrades.
Housingworks
Housingworks
This is a new grant program that provides funding for infrastructure that supports residential growth.
Additional Funding at Risk
In addition to the four grant programs above, access to all state funding is in jeopardy. State agencies will consider noncompliance when awarding discretionary grants that support a range of community needs from economic development to climate resilience.
Community Planning Grants, EOHLC
Massachusetts Downtown Initiative, EOED
Urban Agenda, EOED
Rural and Small Town Development Fund, EOED
Brownfields Redevelopment Fund, MassDevelopment
Site Readiness Program, MassDevelopment
Underutilized Properties Program, MassDevelopment
Collaborative Workspace Program, MassDevelopment
Real Estate Services Technical Assistance, MassDevelopment
Commonwealth Places Programs, MassDevelopment
Land Use Planning Grants, EOEEA
Local Acquisitions for Natural Diversity (LAND) Grants, EOEEA,
Municipal Vulnerability Preparedness (MVP) Planning and Project Grants, EOEEA
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