Category: Housing Preservation

Upgrades Set To Begin At Fenway Complex

Longtime renters in the Boston’s Fenway neighborhood have felt the squeeze from rising rents and conversion of apartments into off-campus housing.

The acquisition of the Burbank Gardens property by the Fenway Community Development Corp. will retain 52 income-restricted units for low-income and disabled residents, averting the Haviland Street complex’s conversion to market-rate housing. Renovations to the property are scheduled to begin in January.

The complex is one of 12 in the city that will lose their funding under the state’s 13A mortgage subsidy program in the next few years. The property is the first in Boston to be acquired by a nonprofit group.

“The seller had an opportunity to sell it on the full market and we were able to strike a deal (through) some shrewd negotiating by our real estate director and maintain the affordability in perpetuity for the residents in the 52 units residing in this absolutely beautiful building,” said Leah Camhi, executive director of the Fenway CDC.

The financing package includes $2.5 million in acquisition financing and $2.5 million in permanent financing from community development block grant funding from the city of Boston. MassHousing provided $5 million in acquisition debt, a $3.8 million construction and permanent tax-exempt bond financing and a $5.4 million bridge loan. Community Economic Development Assistance Corp. provided a $8.3 million temporary acquisition loan.

As a result, 39 units will be retained for households earning a maximum 60 percent of the area median income. Nine will be set aside for households earning 80 percent of AMI, and four will be preserved at 90 percent of AMI.

Leah Camhi, executive director of the Fenway CDC, discusses the preservation of affordability at Burbank Gardens:

https://www.bankerandtradesman.com/upgrades-set-to-begin-at-fenway-complex/?utm_campaign=Daily&utm_source=hs_email&utm_medium=email&utm_content=57398756&_hsenc=p2ANqtz-8BlMFAdSmQYy_2Pt79GPPRct5_TVaVnHCqZLUy86x70BhX9cjX6i7AQjEZH0klaIaSOn2uUcU7zBrgt7BilXrojwtRAw&_hsmi=57398756

SourceBanker & Tradesman

CEDAC provides predevelopment loans to housing in Lexington

The Community Economic Development Assistance Corporation approved $341,500 in predevelopment financing to Pine Grove Village Inc. and Women’s Institute Realty Inc. for the preservation and production of affordable housing, respectively.

In Lexington, Pine Grove Village Inc. received a $130,000 predevelopment loan commitment from CEDAC for the preservation of Pine Grove Village, an existing resident-owned cooperative development. Originally constructed in 1976 with an affordability restriction, the coop residence requires five of the 16 units to be affordable to low-income families, with the remaining units affordable to moderate-income families.

Pine Grove Village Inc. will convert the 11 moderate income units to condominium ownership and transfer the five low-income condo units to the Lexington Housing Authority. New affordability restrictions will be established for the 16 units for 40 additional years under an innovative preservation plan.

For information: https://cedac.org.

http://lexington.wickedlocal.com/news/20171003/strongcedac-provides-predevelopment-loans-to-housing-in-lexington-strong

SourceWicked Local Lexington

Baker-Polito Administration Awards $72 Million to Create, Rehabilitate and Preserve Nearly 2,000 Housing Units

BOSTON – Today, Governor Charlie Baker announced $72 million in housing subsidy funds and additional state and federal tax credits to 25 projects in 17 communities for the creation, rehabilitation, and preservation of 1,970 housing units across the Commonwealth, including 402 units reserved for very low-income families and families making the transition out of homelessness, building on the Baker-Polito Administration’s commitment to increasing the production and preservation of affordable housing for all residents.

“Safe and affordable housing is a cornerstone to the success of our Commonwealth’s families, including access to job opportunities for many of our most vulnerable populations,” said Governor Charlie Baker. “Through our combined efforts and investments to date, over 5,200 affordable housing units are being created, preserved or rehabilitated to support the growth of Massachusetts, our workforce, communities and families.”

The administration is awarding over $72 million in housing subsidy funds, including federal HOME funds and state capital funds. Additionally, the Department of Housing and Community Development is awarding more than $28 million in state and federal low-income housing tax credits, which will generate more than $180 million in equity for these projects. The awards will create or preserve 1,978 rental units, including 1,698 affordable units, in 25 projects across the state. Three projects will reserve units for individuals with disabilities, two are transit-oriented developments and three projects will include Single-Room Occupancy (SRO) units, including a building dedicated to youth aging out of foster care.

“Massachusetts is strongest when all of our families and residents have access to opportunities to thrive,” said Lieutenant Governor Karyn Polito.“Today’s awards will support affordable housing options for families in communities across the Commonwealth’s, regardless of income or zip code, including projects with housing for low-income or formerly homeless families, individuals with disabilities, veterans and the elderly.”

Governor Baker joined Boston Mayor Marty Walsh, Housing and Economic Development Secretary Jay Ash, Housing and Community Development Undersecretary Chrystal Kornegay and MassHousing Executive Director Tim Sullivan to make the funding announcement at Olmsted Green in Mattapan. Olmsted Green is a 38-acre, existing mixed-income housing community on the former site of the Boston State Hospital.

“Today was a big day for housing here in Boston and across the Commonwealth. Not only did we break ground on mixed-income housing units today, we were given the support to continue our work in creating affordable homes for those in this thriving city and create more construction jobs in our neighborhoods,” said Mayor Walsh. “I want to thank the Governor for making these funds available and for supporting important projects like Olmsted Green in Boston.”

Lena New Boston’s efforts are one piece of the larger redevelopment of the former Boston State Hospital into a mix of housing, community and green space. The site includes the Mass Audubon’s Boston Nature Center and Wildlife Sanctuary, which sits on 67 acres. While the site sat vacant after the hospital’s closure in 1979, the past decade has seen the complete transformation of the space, bringing significant affordable and mixed-income housing to the Mattapan neighborhood, with rental and home-ownership opportunities for residents.

The Lena Park Community Development Corporation and New Boston Fund, together known as Lena New Boston LLC, are currently completing a 41-unit affordable, home-ownership development, with previous support from MassHousing’s Workforce Housing Initiative, a joint initiative with DHCD. Lena New Boston will also build an additional 100 units of mixed-income rental housing in the next phase of the development with support from today’s awards.

“Today’s announcement of significant investments in affordable housing represents a key part of the administration’s inclusive strategy to support families and residents, and meet the needs of every community in Massachusetts,” said Housing and Economic Development Secretary Jay Ash. “Creating and preserving housing for families across the income spectrum will allow us to build and retain a skilled workforce across the state, and give our residents access to more opportunities.”

“Our administration is committed to supporting projects that support our most vulnerable communities, from very low-income families, to seniors, veterans and individuals with disabilities,” said Housing and Community Development Undersecretary Chrystal Kornegay. “Affordable housing is a strong tool for community development, and our investments using the Low Income Housing Tax Credit reflect those priorities.”

The 2017 affordable rental housing award round reflects the Baker-Polito Administration’s ongoing commitment to substantially invest in housing across the Commonwealth. In April, Governor Baker filed a housing bond bill seeking $1.287 billion in additional capital authorization to advance the administration’s commitment to affordable housing. In May 2016, the administration unveiled a five-year capital budget plan that includes a $1.1 billion commitment to increasing housing production, an 18% funding increase over previous funding levels. The $1.1 billion capital commitment provides for significant expansions in state support for mixed-income housing production, public housing modernization, and affordable housing preservation.

Since 2015 the Baker-Polito Administration has provided direct funding to create and preserve over 5,200 units of affordable housing across Massachusetts.

In addition, the administration and MassHousing have previously committed $100 million to support the construction of 1,000 new workforce housing units. To date, the Workforce Housing Initiative has advanced the development of 1,317 housing units across a range of incomes, including 387 workforce housing units.

2017 Awardees

Mechanic Mill is a mixed-income historic rehabilitation project located in Attleboro. The project sponsor is WinnDevelopment. When completed, Mechanic Mill will offer 91 total units, with 56 affordable, including 10 units reserved for households earning less than 30 percent of area median income (AMI). All 91 units will be reserved for persons who are at least 55 years old.

Burbank Gardens is a preservation project of an existing 52-unit development located in Boston’s Fenway neighborhood. Fenway Community Development Corporation, with assistance from DHCD, MassHousing, and the City of Boston, will rehabilitate and preserve the existing property and restrict 39 of the 52 units for rental to low and moderate-income tenants.

Cote Village is a 76-unit new construction project in Dorchester sponsored by Caribbean Integration Community Development and the Planning Office for Urban Affairs of the Archdiocese of Boston. The City of Boston also will provide substantial support to the project. When completed, Cote Village will include 56 affordable units, including eight units reserved for formerly homeless individuals or families, and several units reserved for persons with disabilities.

General Heath Square Apartments is a 47-unit new construction project in Boston’s Jamaica Plain neighborhood. The sponsor is the non-profit Jamaica Plain Neighborhood Development Corporation. The city of Boston also will provide substantial support to the project. When completed, this transit-oriented project will include 40 affordable units, including 20 units reserved for households earning less than 30 percent of AMI.

Olmsted Green Mixed-Income is a 100‑unit mixed-income new construction project in Boston to be built on the site of the former Boston State Hospital. Previously, the state and the City of Boston have helped finance over 500 units on the former hospital site. Sponsored by the New Boston Fund, the completed project will offer 40 affordable rental units, including 16 units for households earning less than 30 percent of AMI and several units for persons with disabilities. Sixty units within the project will be made available as workforce and market-rate rental units. The City of Boston also will provide funding for this project.

Talbot Commons Phase 1 is a new construction/rehabilitation project located in Boston’s Codman Square neighborhood. The sponsor is the non-profit Codman Square Neighborhood Development Corporation. The City of Boston also will provide significant support to Talbot Commons. The completed project will offer 40 affordable family units, including nine units reserved for households earning less than 30 percent of AMI.

The Clarion is a new construction mixed-income family housing project to be built on Blue Hill Avenue in Boston. The sponsor is the non-profit The Community Builders (TCB).  The City of Boston also will provide significant support to The Clarion. The site is located near major transit and retail opportunities and will offer 39 total units. Twenty seven units will be affordable, including seven units reserved for households earning less than 30 percent of AMI.  Several affordable units also will be reserved for persons with disabilities.

Washington Westminster House in Boston is a new construction project sponsored by the non-profit Elizabeth Stone House. The 32-unit project will provide affordable housing as well as support services for at-risk and homeless families. All 32 units will be reserved for households with incomes below 30 percent of AMI. The City of Boston also will provide funds to Washington Westminster House.

Wilshire Westminster in Boston is a scattered-site preservation project sponsored by the non-profit Urban Edge to rehabilitate existing properties consisting of 99 total units for families. Eighty-nine of the rehabilitated units will be affordable, including 10 units reserved for households earning less than 30 percent of AMI.

JAS Consolidation is a scattered-site preservation and production project located in Cambridge and sponsored by the non-profit Just-A-Start Inc. The 112-unit consolidation project includes multiple properties located between Kendall Square and East Cambridge. Several of the properties, including St. Patrick’s Church, were destroyed in a massive fire in December 2016. The fire-impacted properties will be demolished and replaced with new, affordable housing, including 12 units reserved for households earning less than 30 percent AMI. Other properties included in the consolidation will be rehabilitated with support from DHCD and from the City of Cambridge.

MacArthur Terrace in Chicopee is a preservation project, an existing large-scale family development sponsored by Dimeo Properties. The City of Chicopee also will provide support to the project.  When completed, MacArthur Terrace will offer 222 total units, with 182 affordable units, including 44 units for households earning less than 30 percent of AMI.

Brownstone Gardens in Easthampton is a preservation project sponsored by Carr Property Management. Originally financed through MassHousing’s Chapter 13A program, the property will be rehabilitated with subsidy funds from DHCD and assistance from MassHousing.  When completed, Brownstone Gardens will offer 132 total units, with 107 affordable units, including 33 units reserved for households earning less than 30 percent of AMI.

Bostwick Gardens in Great Barrington is a new construction/rehabilitation project for seniors sponsored by Berkshire Housing Development Corporation.  The completed project will offer 31 new affordable units for seniors as well as 29 rehabilitated units in an existing building. Eighteen of the total units will be reserved for individuals or couples earning less than 30 percent of AMI.  The non-profit Berkshire Housing Development Corporation will make certain services for seniors available on-site and also will help senior residents access off-site services.

98 Essex in Haverhill is a new construction family housing project sponsored by Affordable Housing and Services Collaborative, Inc. The City of Haverhill also will provide funds to 98 Essex.  When completed, the project will feature 62 total units, all of which are affordable, with seven units reserved for households earning less than 30 percent of AMI.

The Gerson Building in Haverhill is a new construction project sponsored by the non-profit Coalition for a Better Acre.  The City of Haverhill also will provide funds to the Gerson Building. The completed project will offer 44 units for families as well as a preference for households that include veterans.  All 44 units will be affordable, with eight units reserved for households earning less than 30 percent of AMI.

Holyoke Farms Apartments is a large-scale family preservation project located in Holyoke. The sponsor is Maloney Properties, Inc. The City of Holyoke also will provide funds in support of the rehabilitation.  When completed, Holyoke Farms will offer 229 family housing units, with 191 affordable units, including eight units reserved for households earning below 30 percent of AMI and 12 new construction units.

Carter School in Leominster is a historic rehabilitation project sponsored by the non-profit NewVue Communities. The sponsor will rehabilitate a vacant and fire-damaged school building into 39 family housing units. All units will be affordable, including 16 units affordable to households earning less than 30 percent of AMI.  The City of Leominster also will provide funds to the project.

Willis Street Apartments in New Bedford is a new construction project sponsored by the non-profit Women’s Development Corporation. The project will consist of 30 affordable single-room occupancy (SRO) units, and the sponsor will offer a veteran’s preference for each unit.  All units will be affordable, including 23 units reserved for individuals earning less than 30 percent of AMI.

Transitional and Supportive Housing is a scattered-site project located in North Adams and Adams and sponsored by the non-profit Louison House. The sponsor currently operates the only comprehensive shelter program for homeless families in northern Berkshire County. The Transitional and Supportive Housing project will consist of the rehabilitation of 22 family shelter units destroyed by fire as well as the construction of five new permanent housing units for homeless families. All units will be affordable to households earning less than 30 percent of AMI, and the sponsor will provide extensive services to resident families.

King Pine is a large-scale family preservation project located in Orange. The sponsor is The Schochet Companies. The sponsor will rehabilitate this project and extend restrictions on rental rates well into the future. The completed project will offer 234 affordable units, including 24 units affordable to households earning less than 30 percent of AMI.

Cape Cod Village is a new construction project in Orleans. The sponsor is the non-profit Cape Cod Village, Inc. When completed, the project will offer 15 affordable housing units and services to persons with disabilities, including autism. DHCD will support Cape Cod Village with subsidy funds, and seven communities on Cape Cod have committed Community Preservation Act or other local funds to the project.

Harbor and Lafayette Homes is a preservation project consisting of two properties, which are single-room occupancy (SRO) buildings, located in Salem. The project sponsor is the non-profit North Shore Community Development Coalition. The City of Salem also will provide funds to the project. When rehabilitation work has been completed, Harbor and Lafayette Homes will offer 27 SRO units. Twenty-six units will be affordable, including seven units reserved for individuals earning less than 30 percent of AMI.  The property located at Harbor Street will provide housing and services to youth aging out of foster care.

The Residences at Salisbury Square is a new construction and adaptive re-use project in Salisbury.  The sponsor is the non-profit YWCA of Greater Newburyport in partnership with L. D. Russo. When completed, the project will offer 42 total units, all of which will be affordable, with 16 units further restricted for rental to households earning less than 30 percent of AMI.

Chestnut Crossing is a 104-unit preservation project located in downtown Springfield.  Formerly owned by the YMCA of Springfield, the project now is owned by the non-profit Home City Housing. Home City Housing will rehabilitate the project as single-room occupancy (SRO) units with kitchenettes and baths. The City of Springfield also will provide funds in support of Chestnut Crossing. Seventy-nine of the completed SROs will be affordable, including 26 SROs affordable to individuals earning less than 30 percent of AMI.

Moseley Apartments in Westfield involves the historic rehabilitation of a vacant school building into affordable housing for families. The sponsor is the non-profit Domus; Moseley Apartments will be the sponsor’s second school re-use project in Westfield. When completed, Moseley Apartments will offer 23 affordable units, including six units affordable to households earning less than 30 percent of AMI.

http://www.mass.gov/governor/press-office/press-releases/fy2018/awards-to-create-rehab-and-preserve-2000-housing-units.html#

 

SourceGovernor Charlie Baker Press Office

Massachusetts Sets Record In Affordable Housing Preservation

Massachusetts preserved more than 6,000 units of affordable rental housing in 2016, according to a statement released yesterday by the Community Economic Development Assistance Corporation (CEDAC), the public-private, community development finance agency.

It is the largest number of units preserved for affordable housing using state resources in a single calendar year since CEDAC began collecting data. The previous record was nearly 4,400 units, set in 2015.

CEDAC concludes that 7,054 total units in 46 mixed-income project developments across the state were preserved using various types of state financing in 2016. From the total, 6,058 units were affordable and the remainder were market rate. In addition to the units maintained through state financing programs, long-term federal Section 8 contract renewals preserved 2,002 additional affordable apartments. The projects span the state and consist of large- and small-scale developments in urban, suburban and rural communities, including Barnstable, Boston, Brookline, Fall River, Framingham, New Bedford, Springfield and Worcester.

“I am thrilled that Massachusetts has set another record for affordable housing preservation,” Bill Brauner, CEDAC’s director of housing preservation and policy, said in a statement. “Preservation is a critical part of the affordable housing equation and the state has maintained its commitment to preserving these properties for families and individuals. The fact that more than 6,000 units were preserved demonstrates that the innovative tools the state put in place are effective.”

Massachusetts Sets Record In Affordable Housing Preservation

SourceBanker & Tradesman

Housing Bond Bills Aim To Add $1.3B To State Programs

Massachusetts is a national leader in affordable housing by creating a system that provides reliable capital funds to affordable housing developers and because of leadership that consistently supports it. Current legislative proposals aim to recapitalize these programs through the introduction of new housing bond bills that seek over $1.3 billion in additional capital authorization for affordable housing.

The housing bond bill is critically important to ensuring that community development agencies and affordable housing developers have access to public financing options that make their projects feasible. In recognition of the importance of quality housing to the region’s economic competitiveness, the Commonwealth of Massachusetts has bold housing production and preservation goals over the next several years. These goals were expressed in the Baker-Polito administration’s ambitious capital budget plan for fiscal years 2018–22, which increased housing funding by 18 percent over prior levels. The enactment of a new Housing Bond Bill in the current legislative session is essential for the state to meet these goals.

The bills are important because they include resources that promote the production and preservation of affordable housing in general, including an extension of the state’s housing tax credit program. I want to focus on one specific area of community development for which both legislative proposals include significant funding – supportive housing. The commonwealth’s ability to create supportive housing units that provide case management and other services to some of the state’s most vulnerable populations is a quiet but important success story. The commonwealth produced 1,750 supportive housing units through these programs over the past three years.

The Community Economic Development Assistance Corporation (CEDAC) manages three supportive housing loan programs on behalf of the Department of Housing and Community Development (DHCD). The Housing Innovations Fund (HIF), the Facilities Consolidation Fund (FCF) and the Community Based Housing (CBH) programs provide resources to community-based developers. These loans not only offer developers much needed funds for their projects, they also help those organizations meet the housing needs of their most vulnerable community members.

Over the past 29 years, DHCD and CEDAC have through the HIF program allocated over $248 million to produce more than 13,500 units to assist homeless families and individuals, victims of domestic violence and their families, individuals living with HIV/AIDS, disabled veterans and single working adults. Through FCF funding, we have financed another 2,400 units with over $140 million to provide service-enriched housing to clients of the Departments of Mental Health and Developmental Services. And with the newest supportive housing bond program, CBH, CEDAC has allocated over $48 million to produce 342 fully accessible units for disabled persons. Ninety percent of these units serve extremely-low and very low-income residents of Massachusetts.

Continued Success

The success of the state’s investment in supportive housing programs is exemplified by the recent opening of the New Joelyn’s Home in Roxbury. Victory Programs, an experienced provider of housing and services, was forced to create a new residential facility serving those struggling with addiction after their original site on Long Island was abruptly shut down in 2014. As the city and state continue to deal with the opioid crisis and finding ways to treat individuals looking for a way out of addiction, facilities like New Joelyn’s Home become even more important. DHCD and CEDAC committed almost $1 million in HIF funds to Victory Programs, the state’s Department of Public Health provides over $750,000 in annual operating funds, and the nonprofit agency is now serving 24 women with supportive housing.

The bond bill also supports two other programs that CEDAC manages – the Home Modification Loan Program (HMLP), administered with the Massachusetts Rehabilitation Commission, which provides low- and no-interest loans to individuals and families with a disabled loved one to construct accessibility improvements that help them stay in their homes; and the Early Education and Out of School Time (EEOST) Capital Fund, managed in conjunction with the Department of Early Education and Care, which offers loans to community-based child care providers looking to upgrade or renovate their facilities. All of these programs help to strengthen Massachusetts’ cities and towns.

The commonwealth last passed a housing bond bill in 2013. In doing so, it strengthened community development agencies across Massachusetts and effectively created thousands of supportive housing units in cities and towns across the state. The challenges for homeless families or individuals living with addictions or disability have only grown since then. These bond programs work, for individuals and families, for the communities they live in and for the programs that help them. Let’s keep building on that success.

Roger Herzog is the executive director of the Community Economic Development Assistance Corporation (CEDAC).

http://www.bankerandtradesman.com/2017/06/housing-bond-bills-aim-add-1-3b-state-programs/

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SourceBanker & Tradesman

Fenway’s Burbank Gardens to Remain Affordable After Purchase By CDC

Much of the commonwealth’s stock of affordable housing, built in the 1960s, 1970s and 1980s, is at risk of losing affordability. Currently, there are more than 104,000 affordable housing units at risk of converting to market rate; while not all of those are at high risk, we still face the possibility of more than 14,000 converting before January 2020.

Until earlier this month, Burbank Gardens accounted for 52 of those units. The purchase of Burbank Gardens by Fenway Community Development Corporation (Fenway CDC) not only demonstrates the state and local government commitment to preserving affordable housing, but also its continued dedication to finding innovative ways to address the expiring use challenge.

As properties financed through subsidized mortgages issued almost 40 years ago reach maturity, the low income use restrictions accompanying these mortgages expire and long-

time residents face the threat of displacement. Project owners must decide whether to utilize new public financing resources to preserve long-term affordability or opt out of public programs and convert this housing to market rate.

The state legislature, which passed Chapter 40T in 2009 to tackle the expiring use housing challenge, provided the Massachusetts Department of Housing and Community Development (DHCD) and CEDAC tools to monitor and address it. Among the law’s most important provisions are purchase rights, which allow DHCD or its designated

agent to acquire and preserve these expiring affordable housing projects if an owner offers to sell a building. Burbank Gardens is an excellent example of the effective use of these 40T purchase rights, and Fenway CDC successfully acquired the property on April 10. CEDAC provided a $313,000 predevelopment loan and, with participation by Eastern Bank, an $8.2 million acquisition loan. Fenway CDC plans to rehabilitate Burbank Gardens and to ensure that 51 of the 52 apartments remain affordable for low- and moderate-income households.

Located next to Symphony Community Park in the Fenway neighborhood of Boston, the property consists of studio, and one- and two-bedroom apartments, as well as community space. It was one of many 13A properties financed by MassHousing whose 40 year mortgage term will reach maturity in March 2018. Because the project faced imminent risk of market conversion, its preservation became a priority for the state. When the previous owner put the property on the market in early 2016, Fenway CDC was designated by DHCD through Chapter 40T to purchase and preserve the 52-unit residence.

State Policy And Investments Make Significant Impact

Since Chapter 40T was enacted, the law has helped to preserve 24,380 units of privately- owned affordable housing across the commonwealth, ensuring that families are able to stay in their homes and neighborhoods. But still, thousands of units remain at risk. Preserving these affordable units requires a combination of resident and community initiative, technical expertise, and private and public investment.

In the case of Burbank Gardens, public investment has played a significant role. Though not all of the project’s long-term financing is committed, it is anticipated that the majority will come from state resources. This includes millions of dollars in resources from DHCD and MassHousing, along with equity raised from federal and state housing tax credits. In addition to state resources, the city of Boston, through the Department of Neighborhood Development, has shown its support for preservation by committing significant resources to this important preservation effort.

Assembling the right combination of resources to help preserve large-scale affordable housing developments can be a complex endeavor. But over the past several years, Massachusetts has learned how to do that well. Last year, the Urban Institute released data ranking the counties across the United States doing the best job of housing extremely low income families – of the top 10 counties, five were in Massachusetts, in part because of the commonwealth’s successful housing preservation efforts. Suffolk County was ranked first in the nation. CEDAC has supported and advised the city of Boston on preservation strategies – and worked with Boston-area nonprofits like Fenway CDC – for many years.

Burbank Gardens is a success story because, in a time of much uncertainty, the Commonwealth of Massachusetts has maintained its commitment to producing and preserving affordable housing.  Beyond the state’s support of housing tax credits, Gov. Charlie Baker and Lt. Gov. Karyn Polito just last week unveiled their housing bond bill, which includes more than $1.3 billion for affordable housing production and preservation over the next five years.  With such support, we expect to see more such successful preservation efforts, like Burbank Gardens, going forward.

Roger Herzog is the executive director of the Community Economic Development Assistance Corporation (CEDAC). Bill Brauner is CEDAC’s director of housing preservation and policy.

http://www.bankerandtradesman.com/2017/04/fenways-burbank-gardens-remain-affordable-purchase-cdc/?utm_campaign=shareaholic&utm_medium=twitter&utm_source=socialnetwork

SourceBanker & Tradesman

CEDAC Commits $8.5M To Preserve Affordable Housing In Fenway

The Community Economic Development Assistance Corp. (CEDAC) recently committed over $8.5 million in financing to Fenway Community Development Corp. (Fenway CDC) to purchase and preserve Burbank Gardens, an existing affordable housing development located in the Fenway.

In 2009, the Massachusetts legislature passed Chapter 40T into law, giving the state’s Department of Housing and Community Development (DHCD) and CEDAC tools to monitor and address the expiring use challenge.

When the seller of Burbank Gardens put the property on the market in early 2016, Fenway CDC was designated by DHCD through Chapter 40T to purchase and preserve the 52-unit residence. The seller accepted Fenway CDC’s offer in September 2016.

“Preserving Burbank Gardens is an important step in the Commonwealth’s ongoing efforts to maintaining affordable housing,” Roger Herzog, CEDAC’s executive director, said in a statement. “It demonstrates once again that the innovative Chapter 40T law remains an effective tool and is a national model for preserving quality affordable housing.”

CDC plans to ensure that 51 of the 52 apartments remain affordable for low and moderate income households. The property currently consists of 52 studio, one- and two-bedroom apartments. CEDAC provided a $313,000 predevelopment loan and, with participation by Eastern Bank, an $8,268,525 acquisition loan to Fenway CDC for this important preservation effort.

http://www.bankerandtradesman.com/2017/04/cedac-commits-8-5m-preserve-affordable-housing-fenway/

SourceBanker & Tradesman

Baker-Polito Administration Announces $20 Million for Supportive Affordable Housing

BOSTON – Today the Baker-Polito Administration announced a total of $20 million in awards to seven affordable housing projects in Massachusetts, to support the creation and preservation of 177 supportive housing units for homeless families and individuals, veterans, the elderly and individuals with disabilities. The awarded projects will provide affordable rental housing to extremely low-income families and individuals, and provide wraparound services to residents.

Lieutenant Governor Karyn Polito and Undersecretary of Housing and Community Development Chrystal Kornegay announced the funding today, alongside elected officials and officials from The Neighborhood Developers, at an event in Chelsea.

“These awards leverage state and federal funding to serve our most vulnerable communities,” said Governor Charlie Baker. “Our administration strongly believes in the value of affordable housing, and as advocates for every Massachusetts resident we will continue to work with our federal, local and community partners to ensure housing is shared priority.”

“These seven projects will create housing that specifically targets our state’s at-risk populations, including veterans, the elderly, individuals with disabilities, and formerly homeless women and families,” said Lieutenant Governor Karyn Polito. “I’m incredibly proud of our commitment to ensuring all of our residents are not only able to access housing, but also the supportive services they need to succeed.”

Funding for these projects includes $3.1 million from the National Housing Trust Fund (HTF), a newly-authorized federal program that supports the development of affordable housing for low-income individuals and families that include supportive services. The Department of Housing and Community Development (DHCD) is supporting the awarded projects through $14.9 million in state affordable housing subsidies, and 100 project-based Massachusetts Rental Voucher Program (MRVP) vouchers. DHCD also allocated approximately $2 million in state and federal Low-Income Housing Tax Credits (LIHTC) to the awarded projects.

“Housing with wraparound supportive services gives residents the tools necessary to break the cycle of homelessness,” said Housing and Economic Development Secretary Jay Ash. “Putting our residents on the path towards stability by connecting them to education, job training, transportation assistance, childcare and more services, strengthens communities across Massachusetts.”

“The challenges presented by homelessness and housing instability to families and individuals are significant,” said Undersecretary of Housing and Community Development Undersecretary Chrystal Kornegay. “Supportive services allow us to meet families and individuals where they are, providing assistance in a holistic manner to tackle the issues that stand between residents and long-term stability.”

The Baker-Polito Administration has implemented a comprehensive approach to reducing homelessness through early intervention, diversion and wraparound services for homeless and at-risk populations, as well as through the creation of affordable rental housing for homeless and at-risk families and individuals. These efforts have resulted in a significant reduction in the number families residing in shelter across the state, reducing Emergency Assistance caseloads by over 23%. Since 2015, the administration has reduced the number of homeless families living in overflow shelter in hotels and motels from 1,500 families, to less than 70.

Last May, the Baker-Polito Administration unveiled a 5-year capital budget plan that includes a $1.1 billion commitment to increasing housing production, an 18 percent funding increase for mixed-income housing production, and affordable housing preservation. The administration and MassHousing also committed a separate $100 million to support the construction of 1,000 new workforce housing units. Since 2015 the Baker-Polito Administration has provided direct funding to create and preserve over 3,000 units of affordable housing across Massachusetts.

2017 Supportive Housing Awards:

Montello Welcome Home II, Brockton

Montello Welcome Home II, sponsored by Father Bill’s & MainSpring, will create 23 new supportive housing units for homeless veterans and other homeless individuals, and provide a comprehensive package of services to help residents retain their tenancies and prevent relapse into homelessness. DHCD awarded $500,000 in HTF funding, and $2.6 million in state subsidy.

242 Spencer, Chelsea

The Neighborhood Developers will revitalize a vacant building at 242 Spencer Street and create 34 new units of affordable rental housing for families. The project will include 3 units targeted to low income persons with disabilities and 8 units for formerly homeless families who will receive supportive services from Housing Families, Inc. DHCD awarded $500,000 in HTF funding, $1.1 million in state and federal low-income housing tax credits, and $3.125 million in state subsidy.

House of Hope 3, Lowell

House of Hope, Inc. will renovate a former assisted living facility to create 17 units of permanent supportive housing for formerly homeless families, and provide residents with comprehensive supportive services, including education, job training, and child care services. DHCD awarded $500,000 in HTF funding, and $3.7 million in state subsidy.

Under One Roof, New Bedford

Under One Roof, sponsored by the YWCA of Southeastern Massachusetts, will renovate a building that currently houses the YWCA’s existing office space to create 8 units of permanent supportive housing for formerly homeless or incarcerated women. Under One Roof will include a child-care facility. The project will consolidate and unify the YWCA’s administrative, program, and residential activities at one site in a state-of-the-art facility. DHCD awarded $451,000 in HTF funding, and $550,000 in state subsidy.

Hillside Residence, West Springfield

The non-profit Sisters of Providence will build a new, 36-unit supportive housing residence for elders who are homeless and at risk of institutionalization. The project will be sited on the campus of an existing elder service compound, and on-site services will be available through a federal Program of All-inclusive Care for the Elderly (PACE) operated by MERCY Life. DHCD awarded $500,000 in HTF funding, and $2 million in state subsidy.

Abby’s House, Worcester

Abby Kelley Foster House, Inc. will undertake considerable renovations of the existing 53 units at Abby’s House and add two new apartments, for a total of 55 units. The project will provide housing for women who have been homeless due to domestic violence, eviction, economic crisis, or unemployment, and supportive services will be offered on-site to residents. DHCD awarded $500,000 in HTF funding, $989,000 in state and federal low-income housing tax credits, and $2.5 million in state subsidy.

21 Jaques Avenue, Worcester

21 Jaques Avenue is an abandoned property on a prominent corner in Worcester. Worcester Common Ground will substantially rehabilitate the building to create 4 units of affordable rental housing for families with very-low and extremely-low incomes. Two units will be targeted to households with disabilities. DHCD awarded $130,000 in HTF funding, and $422,000 in state subsidy.

SourceMass.gov

Boston strives to preserve affordable housing

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/

SourceSAMPAN News