Milton begins losing state grants after town vote overrides state-mandated housing plan

Milton has lost eligibility for a $140,800 state waterfront improvement grant, Healey administration officials announced Wednesday. The move was the first in what could be a series of penalties in the wake of the town's vote to override a state-mandated zoning plan.

Massachusetts Housing Secretary Ed Augustus said in a letter to town officials that Milton is out of compliance with the MBTA Communities law, which requires cities and towns with T stops to zone for additional multi-family housing.

The town's "non-compliant status means the town will begin losing out on significant grant funding from the state, effective immediately," Augustus wrote.

As was required by the law, Milton initially created a plan that would allow up to 2,500 new units. Opponents organized a referendum against the plan, winning the “no” campaign last week with 54% of votes cast.

Milton could lose out on 13 grant programs funded by the state housing office. The $140,800 grant comes from the Seaport Economic Council, which awarded the town money to restore a seawall and upgrade a dock.

Town Administrator Nicholas Milano said Milton officials are "disappointed" to lose the state funds that would "improve public access to the waterfront and our resiliency against climate change."

The town's planning board, as well as its select board, were set to convene for respective meetings over the next week to discuss the matter, he added.

In January, Milano described a host of state grants that Milton could lose eligibility for as a result of not complying with the MBTA Communities law. Those include grants for schools, IT, public works, as well as housing.

Milton may face additional repercussions for the no vote from other state leaders. Massachusetts Attorney General Andrea Campbell warned town leaders in a letter ahead of the vote that her office would take legal action to “compel compliance” with the zoning law if necessary.