The Legislature has authorized the state to borrow up to $1.4 billion over the next five years to build and maintain affordable housing.
Legislative leaders say the measure that won final approval in the Senate on Thursday was the first long-term housing finance bill to come before lawmakers since 2008.
The bill authorizes $500 million to rehabilitate and modernize public housing. More than $300 million would be directed to a trust fund that creates or preserves affordable housing for families at or below the median income for their regions.
The measure would also establish a fund for capital improvements to nonprofit child care facilities.