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.

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/