Although Boston has demonstrated a strong commitment to affordable housing, with 52,800 subsidized units to help house its low- and moderate-income residents, these critically important assets can become at risk. Boston’s strong real estate market makes it extremely attractive for landlords with expiring affordability restrictions to convert their property to market-rate housing.
There are 30,477 affordable units in Boston that are privately-owned that were funded from the state and federal programs over the last 50 years. These units are potentially at risk because most have reached the end of their initial affordability requirements and owners may convert to market rate. While many units are at low risk because of non-profit ownership or already-executed affordability extensions, there more than 4,100 units considered to be at moderate or elevated risk.
Boston 2030 Goals
- Retain at least 97 percent of privately-owned affordable rental housing.
Retaining at least 97 percent of the City’s 30,435-unit portfolio may be difficult, given the twin challenges of the 13A issue and declining Federal support. Attaining this goal will require a commitment of significant resources from the City and State. To this end, the City understands that to best use our scarce housing preservation resources, the preservation of at-risk units, especially 13A units, must take precedence over upgrading affordable units that are not at risk.
- Seek to preserve all of the 13A developments; where preservation is not an option, ensure that 100 percent of tenants in those developments have access to alternative housing options.
Unlike other affordable housing opt-outs, in 13A developments there are no tenant protection vouchers available to low income residents if that development converts to market-rate housing. Working with our partners at the State and in the non-profit community, we will execute strategies to provide assistance to tenants of units that, despite best efforts, may not be preserved.
How we’re doing: Results to date
- The 97 percent retention target means that no more than 161 units can be lost by the end of 2016. With only 61 units lost to date, the City is well ahead of target.
- Of the 4,100 units identified as at moderate or elevated risk, 1,013 have been preserved and only 61 units lost.
- Nine preservation projects, compromising 376 affordable units, were funded by the City between 2014 and 2016. The City contributed $6.5 million to these projects, which in turn leveraged $123 million in State, Federal and private funds.
- There are 600 units in nine 13A developments across the city that are at risk of loss of affordability. Department of Neighborhood Development (DND) staff continues to meet with tenant groups, owners and potential developers in hopes of preserving many of these units as affordable and where that is not possible, to protect the current tenants from excessive rent increases and eviction.
How we’ve done it: Our strategies
- Working with partners at the State, City staff are prioritizing projects most at risk for loss of affordability due to market pressures, financial feasibility, or physical condition. With Community Economic Development Assistance Corporation and Mass Housing, DND is providing owners with financing options that would allow them to take advantage of programs such as Rental Assistance Demonstration, tax-exempt bond financing and other resources and tools as encouragement for them to make a decision to preserve tenancies and secure the long-term affordability of the development.
- The City and the State have been reaching out to the owners of the 13A developments, to encourage preservation of the tenancies of low- to moderate-income residents, beyond the protections offered under 40T.
- The City expects to close on the first acquisition of a Boston 13A development by the end of March 2017.
This article is from the “Housing a Changing City: Boston 2030” report.
http://sampan.org/2017/03/boston-strives-to-preserve-affordable-housing/