Tag: affordable housing
How Cities Are Preserving Affordable Housing
The U.S. needs more affordable housing. A lot more. Between 2001 and 2013 the countrylost 2.4 million rental housing units (both market-rate and subsidized) that were affordable to people making less than 50 percent of area median income. Building more units will help, but preserving existing affordable housing is critical too: It’s generally cheaper than new construction, prevents displacement, takes advantage of existing land use patterns and allows people to remain where they already live. But preservation also presents challenges of its own, often necessitating the blending of multiple federal, state and local funding sources and greater collaboration between developers, policymakers and other stakeholders.
In a bid to better understand how affordable housing preservation happens, the Urban Institute has released a new report and a series of six case studies under the title “Anatomy of a Preservation Deal.” While the report emphasizes that every case is different, it identifies five key lessons for other groups seeking to preserve affordable housing.
First, write the authors, federal subsidies may play a crucial role in funding a project, but they’ll likely be insufficient. Federal subsidies have been flat or declining since 2004. According to the report, between 2004 and 2014 the number of housing vouchers increased from 2.1 million to 2.2 million, but 106,000 public housing units and 146,000 project-based rental assistance units were lost. Another 400,000 units are at risk of losing their affordability because of expiring contracts, and 50,000 are at risk because of deteriorating physical conditions.
Therefore, state and local resources are critical as well. Putnam Square, for example, an affordable rental property in Cambridge, Massachusetts, with 94 units for senior citizens and residents with disabilities, utilized both Low-Income Housing Tax Credits (LIHTC) and Project-Based Rental Assistance (PRBA) funding from the federal government. But the project also received acquisition and predevelopment funding from the state’s Community Economic Development Assistance Corporation and financing through the city of Cambridge and the Cambridge Affordable Housing Trust.
Funding these sorts of projects is a complex endeavor, often involving a host of stakeholders. Funding Putnam Square alone involved 13 agencies and organizations. Hence the second lesson identified in the Urban Institute report relates to developer capacity: “The bigger a project, the more sophisticated the methods needed — and partners involved — to make it successful.” Projects are further complicated by expensive, competitive markets or by the need to preserve historic structures or serve the needs of special populations, like the elderly.
And sophisticated, mission-driven developers are particularly necessary in areas where private capital can’t be attracted. The report cites as an example 4657 West Madison in Chicago. A private local buyer wanted to purchase and renovate the vacant building, but a bank wouldn’t finance it. Community Investment Corporation, a local CDFI did. Now the building provides 10 units that are naturally affordable because of low market rents in the area.
The report also highlights the need for collaborative relationships, which are often led by mission-driven sellers. Putnam Square, for example, had previously been owned by Harvard University, which sold the property to nonprofit developer Homeowner’s Rehab with the explicit desire to keep the units affordable. Harvard continues to fund a resident services program there. A similar relationship ensures the affordability of Billings Forge, a development in Hartford, Connecticut.
Relationships and social goals were key in the two deals above, but the report notes that policy is also key in supporting preservation efforts. Putnam Square was aided by Massachusetts’s 40T expiring use preservation law, which requires affected parties to be notified when affordability restrictions are going to expire, protects against displacement of current residents, and gives the state an opportunity to make or match purchase offers on subsidized properties up for sale.
Both Oregon and Washington, D.C., have Opportunity to Purchase Acts, which require landlords planning to sell their properties to give tenants the chance to buy their homes. In D.C., they have a set period of time to secure financing and negotiate a sale, or to assign their rights to a third party to do so. The latter occurred at the Monseñor Romero Apartments in D.C., purchased by a nonprofit organization.
The final lesson included in the report is the importance of communicating these successes and the policies that made them possible to other interested groups around the country. This can include sharing how financing was structured or how policy frameworks were created — any strategies that helped preserve affordable housing. The report cites the example of the National Preservation Working group, a coalition of affordable housing advocates, developers and other stakeholders who are lobbying for more effective preservation policy. Locally, the Preservation Compact does similar work in the Chicago region.
The report concludes with a lesson that should have been learned from the failures of large-scale public housing. “Initial funds for construction were not enough to ensure stable, secure, and solvent developments in the long term,” write the authors. “Buildings get old. Contracts and rent restrictions expire. Residents and community needs change. Funding for renovations and repair, services, and other features need to come from somewhere. Tax credits and the like can help, but the reality is that affordable housing can be lost for a number of reasons. Preservation requires the continuing efforts of those in the affordable housing field to obtain funding and respond to ever-changing local contexts.”
https://nextcity.org/daily/entry/five-lessons-for-preserving-affordable-housing
State grant to benefit Boston Street affordable housing 2 rooming houses will become units for formerly homeless
State grant to benefit Boston Street affordable housing
2 rooming houses will become units for formerly homeless
By Dustin Luca Staff Writer
Aug 19, 2016
SALEM — Harborlight Community Partners just landed a valuable chunk of change toward its $6.5 million overhaul of two Boston Street properties.
Gov. Charlie Baker’s administration said this week that Boston Street Crossing is one of 26 projects in the state that will receive state grants aimed at developing and preserving affordable rental housing. Andrew DeFranza, executive director of Harborlight, said he didn’t know yet just how much money the project will receive.
The project grew out of a homelessness task force that has been meeting on the North Shore for about a year and a half.
“This is sort of springing from that soil,” DeFranza said. “It’s going to take two existing rooming houses in Salem — 43 Boston St. and 179 Boston St. — and make dramatic physical improvements to those buildings.”
There are currently 37 rooms in the two buildings. Once the project is finished, the buildings will house 26 studio apartments tailored for formerly homeless individuals. All 26 units will be reserved for people making less than 30 percent of the area’s median income.
Lifebridge, the nonprofit that runs the shelter for the homeless in downtown Salem, is a partner in the project.
“They’re going to provide the case management services,” DeFranza said. “We do the development and run the property, but we bring in partners to provide services.”
The state grant is one of several funding sources for the $6.5 million project.
“The (Community Preservation Act) funded it and the city of Salem funded it,” DeFranza said. “It was funded with North Shore Home Consortium funds. It also has a redevelopment loan from CEDAC (the Community Economic Development Assistance Corp.).”
The City Council voted earlier this year to approve $59,000 in funding from CPA funds. The money comes from a small surcharge on property taxes that is dedicated to historic preservation, open space and affordable housing.
This project represents one of the best ways to fight against homelessness, said DeFranza.
“Creating (good quality) affordable housing is the key method for making it possible for those who are homeless to be housed again,” he said. “You have to create housing they can afford with their income levels and have the services that allow them independence.”
The homelessness task force, meanwhile, “created the space to help allow solutions addressing that problem,” he continued. “This is one of the mechanisms to address the problem in the region.”
The Beverly-Salem Mayors Regional Task Force on Homelessness began meeting in December of 2014, bringing together local officials, law enforcement and social service agencies to come up with solutions to the problems of homelessness.
© Copyright 2016 Salem News
CEDAC Provides $1.3M In Funding To Support Boston Housing And Child Care
CEDAC Provides $1.3M In Funding To Support Boston Housing And Child Care
Aug 19, 2016
The Community Economic Development Assistance Corporation (CEDAC) recently approved acquisition and predevelopment loans totaling over $1.3 million to Urban Edge Housing Corp. and Family Nurturing Center of Massachusetts. CEDAC’s financing will support the development of affordable housing in the Roxbury neighborhood and improvements to a parent support program in the Dorchester neighborhood of Boston.
CEDAC provided $1.2 million in acquisition financing to Urban Edge Housing Development for the purchase and development of a new affordable housing project on Columbus Avenue in Roxbury, which includes 38 units of multifamily affordable rental housing and 1,000 square feet of commercial space. This new affordable housing project, which will be located just blocks from the Jackson Square MBTA station, will serve low- and extremely low-income families in the community and continue the trend of growth in the area in and around Jackson Square.
“We have been extremely proud to support the efforts by the Jackson Square Partners to revitalize the neighborhood in a way that helps current residents,” Roger Herzog, CEDAC’s executive director, said in a statement. “The current site is blighted and the neighborhood will greatly benefit from quality housing on that site. It is a pleasure to continue our effective relationship with Urban Edge, which goes beyond the Jackson Square redevelopment and into other nearby neighborhoods in Roxbury and Jamaica Plain.”
Family Nurturing Center of Massachusetts (FNC) also received $123,100 from CEDAC, through its affiliate Children’s Investment Fund, for the expansion of a Dorchester location. This commitment is in addition to $375,000 previously provided to FNC by the fund for this project. For over two decades, FNC has provided comprehensive family support services to low-income families throughout Boston. To allow for the expansion of programmatic and administrative space, FNC is renovating and enlarging its existing Bowdoin Street center to include two additional floors.
Copyright © 2016 The Warren Group | All Rights Reserved |
Baker Administration Announces Affordable Housing Development Awards
Baker Administration Announces Affordable Housing Development Awards
Aug 16, 2016
The Baker Administration announced awards to fund the development, renovation and preservation of affordable rental housing across the commonwealth on Monday. The money will be used to create or preserve 1,420 housing units.
“These affordable housing awards reflect our administration’s commitment to a stronger, more prosperous and more inclusive commonwealth,” Gov. Charlie Baker said in a statement. “By increasing affordable housing production, and stabilizing working families, low-income senior citizens and homeless families or those at risk, these housing awards will strengthen communities across Massachusetts.”
The announcement was made at48 Boylston St. in Boston, a historic rehabilitation project for formerly homeless residents sponsored by St. Francis House and the Archdiocese of Boston’s Planning Office for Urban Affairs.
The 26 projects awarded will create or preserve 1,420 rental units, including 1,334 affordable units, across 16 Massachusetts communities. The Department of Housing and Community Development is awarding over $31 million in state and federal low-income housing tax credits, which will generate over $218 million in equity for these projects. Additionally, the administration is awarding over $59 million in housing subsidy funds, including federal HOME funds and state capital funds, across the 26 projects.
Projects will serve a wide variety of constituents, including individuals and families transitioning out of homelessness, persons with disabilities and the elderly. Four projects are focused on senior housing, five will provide supportive services to residents and all 26 will include deeply affordable units. The Baker Administration prioritized applications that included a 10 percent allotment for individuals and families who are, or are at risk of becoming, homeless.
In May, the administration unveiled a five-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. In May, the Administration and MassHousing committed $100 million, to support the construction of 1,000 new workforce housing units. Since 2015, the administration has provided funding to create and preserve 2,856 units of affordable housing, including 874 deeply affordable units for at-risk populations.
“St. Francis House is a perfect example of an organization committed to ending homelessness for individuals and families by providing safe and affordable housing and meeting the full needs of their tenants,” Secretary of Health and Human Services Marylou Sudders said in a statement. “These awards will help support vulnerable citizens in the commonwealth.”
The award will include 46 units of affordable housing at the former Boston Young Men’s Christian Union building at 48 Boylston St. The state Department of Housing and Community Development (DHCD) will support the project with federal and state low income housing tax credits that will leverage about $11.8 million in equity and $4 million in subsidies from DHCD.
St. Francis House and the Planning Office for Urban Affairs of the Archdiocese of Boston (POUA) purchased the building in April of this year, and the two entities plan to rehabilitate the historic, but presently vacant, building into affordable housing. The completed development will include units reserved for people who have experienced homelessness and others with very modest incomes. Twenty-six of the units will be reserved for individuals earning less than 30 percent of the area median income.
Copyright © 2016 The Warren Group | All Rights Reserved |
Our view: Cape Ann leading the way on affordable housing
Our view: Cape Ann leading the way on affordable housing
July 28, 2016
The last several days have brought good news in the struggle to make Cape Ann a less expensive place to live for its residents.
Last week, the Gloucester Zoning Board of Appeals signed off on plans to transform the long-shuttered Cameron’s restaurant on Main Street into a new building with 30 affordable rental units and a first floor set aside for retail space. And earlier this week, the Community Economic Development Assistance Corporation, a public-private agency that helps nonprofit developers, backed a proposal for a new affordable housing complex on Granite Street in Rockport with a $564,000 interest-free loan.
That neither piece of news was seen as earth-shattering is a positive sign. Both projects, while far from complete, are examples of city officials, nonprofits and interested citizens working together to address one of the region’s most serious issues. Other communities on the North Shore where the first response to an affordable housing proposal is “not in my back yard,” should watch and learn.
There are several factors working in Cape Ann’s favor. First, the Gloucester and Rockport plans are backed by nonprofits with a long, solid track record in the region. The Cameron’s proposal is led by Gloucester’s Action Inc. and the North Shore Community Development Corporation, which manages several affordable housing initiatives across the region. So does Harborlight Community Partners, the nonprofit behind the Rockport proposal. (Harborlight already runs two elder housing sites in town, the Rockport High School Apartments and Pigeon Cove Ledges.)
All three agencies know how to listen. Both the Cameron’s and Rockport plans are so-called 40B projects, which allows developers to bypass most local permitting in communities where affordable housing makes up less than 10 percent of the housing stock. In Gloucester, 7.2 percent of the housing stock is considered affordable; in Rockport, the number is 3.3 percent.
The Cameron’s project, as approved by the Zoning Board of Appeals last week, is significantly different than what was first proposed. And that’s fine — the North Shore CDC held a series of sometimes-contentious forums in the city to hear what residents had to say, and took their concerns, and the suggestions of city officials, seriously.
The zoning board permit, for example, calls for the agencies to press the state to ensure preference is given to Gloucester residents and local veterans in need of affordable housing. And Action Inc. and the North Shore CDC made several design changes along the way. Their willingness to cooperate drew praise from city officials, including Mayor Sefatia Romeo Theken.
“Affordable housing is critical for downtown development,” she said, “but hearing from all the voices within our community shaped improvements to the plans, making this project even better.”
North Shore CDC CEO Mickey Northcutt was similarly effusive.
“We have thoroughly enjoyed working with the city of Gloucester and can’t wait to get it built,” he said.
In Rockport, Harborlight CEO Andrew DeFranza has been meeting with local officials and neighbors of the 5 Granite St. site. The nonprofit has reached out to the Planning Board for input, and will make a presentation at its Aug. 18 meeting.
“The Planning Board is being asked to give input just because it’s a residential development,” Rockport town planner Kirk Baker told reporter Ray Lamont. “But I have done a site visit out there, and have met with (DeFranza) to discuss the idea of what they are going to be doing.”
Both projects have a long way to go before they begin. But the early signs are positive, and show what can be achieved when municipal officials and residents realize they can be partners instead of opponents.
Here’s hoping the rest of the region is watching.
© Copyright 2016 Gloucester Daily Times
Proposed Rockport housing development gets $564,000 boost
Proposed Rockport housing development gets $564,000 boost
By Ray Lamont Staff Writer
July 28, 2016
ROCKPORT — The nonprofit development group looking to build 23 units of affordable rental housing on Granite Street has received a boost of more than $500,000 from a state-created financing agency to advance the project.
The Community Economic Development Assistance Corporation, a public-private agency that provides financial, technical and other assistance to nonprofit developers, has extended $564,000 to the Beverly-based Harborlight Community Partners as an interest-free loan in its bid to build a new affordable housing complex at 5 Granite St.
The proposal, outlined in June by Harborlight CEO Andrew DeFranza, is pegged to include four one-bedroom units, 16 units of two bedrooms each, and a trio of three-bedroom apartments, all geared toward federal and state-recognized affordable housing eligibility standards.
DeFranza said Wednesday evening that the loan will enable Harborlight to accelerate acquiring the property and advancing its design work. He said the purchase is pegged at $470,000.
“This is a huge piece of support in terms of being able to hold it, and to do the planning work that’s needed,” DeFranza said. “But emotionally, it’s also a significant state boost that shows that folks at the state level are interested in the concept and the site.”
Rockport Planner Kirk Baker and DeFranza both said Wednesday that Harborlight has not yet submitted specific plans for the 1.3-acre site and the project, which Harborlight has titled Granite Street Crossing.
Both also said the project will be filed as a comprehensive permit under the state’s Chapter 40B affordable housing legislation, which limits local permitting for projects and can be utilized in communities whose current affordable units represent less than 10 percent of the town’s housing stock.
Rockport’s affordable housing percentage sits at 3.3 percent, according to the Massachusetts Department of Housing and Community Development.
DeFranza termed the application a “friendly Chapter 40B” filing, adding that he and other Harborlight officials have met with the site’s neighbors.
© Copyright 2016 Gloucester Daily Times
39 Affordable Homes for Seniors Open in Revere
39 Affordable Homes for Seniors Open in Revere
June 10, 2016
by RealEstateRama
Revere, MA – (RealEstateRama) — At a ribbon-cutting ceremony today, The Neighborhood Developers (TND) officially opened their newest building, One Beach, in Revere. Joining The Neighborhood Developers at today’s ceremony was Mayor of Revere Brian Arrigo and Massachusetts Department of Housing and Community Development Undersecretary Chrystal Kornegay, as well as numerous funders and business partners who helped to make this development possible, including Bank of America, the TD Charitable Foundation, the Charles H. Farnsworth Trust, Massachusetts Housing Partnership, MassHousing, the Community Economic Development Assistance Corporation, the U.S. Department of Housing and Urban Development, and the North Suburban Consortium.
One Beach is a new four-story building in downtown Revere, featuring 39 affordable rental apartments for seniors. Construction began in April of 2015, after the demolition of a long vacant building, and concluded in May of this year. Residents have begun moving in and the leasing process will continue into the summer. The 39 apartments include 30 one-bedroom and 9 two-bedroom units.
“Where we live determines our quality of life – home matters – and One Beach provides beautiful high quality affordable homes that contribute to the great revitalization work happening along Broadway,” said Ann Houston, Executive Director of TND. “At One Beach, we are offering seniors the opportunity to live affordably in the heart of their community, in homes that sustain social and healthy lifestyles. We are pleased to continue our partnership with Revere to support a thriving community.”
Centrally located at the intersection of Broadway and Beach Street, One Beach offers residents convenient access to many shops and amenities. The building is a short walk from the Revere Rossetti-Cowan Senior Center, City Hall, and the Revere Public Library. The MBTA’s 116, 117, and 119 bus lines stop just outside of One Beach. They connect residents to Beth Israel Deaconess in Chelsea, MGH Healthcare Centers in Revere, and the MBTA’s Blue Line. The development is one part of Revere’s ongoing Broadway revitalization effort, intended to beautify the area and support economic development.
“The high demand at One Beach shows what an important community asset senior housing is,” said Revere Mayor Brian Arrigo. “This new project provides an opportunity for seniors to enjoy safe, secure housing in a brand new facility. We gladly welcome One Beach to our community.”
One Beach features a large ground-floor common room with a full kitchen, library, computers, television, and fitness equipment to promote health and community among the building’s residents. Outdoor amenities include a courtyard and onsite parking. The building and site are designed with enhanced accessibility features in many apartments, to accommodate seniors as they age.
One Beach meets a significant need for affordable senior housing in Revere. Fifteen percent of Revere’s population is over the age of 65, and 72% of Revere’s senior renters are cost-burdened, spending, on average, more than 30% of their annual income on rent. All apartments at One Beach are restricted to households earning 60% or less of the area median income and that include at least one member aged 55 or older.
“Affordable housing for seniors helps individuals age in place, and stay a part of a community they helped to build,” said Undersecretary for Housing and Community Development Chrystal Kornegay. “Increasing the stock of affordable housing built specifically for the needs of seniors is important for Massachusetts, and will be an important asset to Revere.”
Applications for apartments at One Beach were first made available in December 2015. Since then, TND has received more than 680 applications for the 39 apartments.
“We have had a strong working relationship with TND, so we’re pleased to provide the construction loan and low income housing tax credits that helped finance One Beach,” said Miceal Chamberlain, Massachusetts President of Bank of America. “In the past seven years, TND and Bank of America Merrill Lynch have created more than 180 affordable housing units in Revere and Chelsea, demonstrating our continued commitment to create strong neighborhoods in the communities we serve.”
TND’s first development for seniors in Revere was at Walden House in the Shirley Ave. neighborhood, offering seven affordable apartments. 525 Beach, also in the Shirley Ave. neighborhood, was opened in March of 2015 with 30 affordable apartments. TND is expanding its involvement at these buildings and at One Beach with a new Resident Services program to launch this summer. The Associate Director of Resident Services will connect residents to social services, promote healthy living, and help engage residents in their community. TND will offer residents individual case management as well as on-site opportunities to develop financial capabilities and healthy lifestyles.
With the opening of One Beach, TND’s portfolio increases to 389 affordable apartments, housing more than 950 individuals in Chelsea and Revere.
The Neighborhood Developers (TND) is a non-profit Community Development Corporation. TND’s mission is to bring its core strengths – building homes, engaging neighbors, and fostering economic mobility – to community partnerships that create great neighborhoods where all people can thrive.
Founded in 1979, TND spent its first 25 years developing great, affordable places to live in Chelsea. In 2006, TND expanded its emphasis from solely building affordable homes to building vital neighborhoods, focusing on both the people and the place. Its programs are delivered in Chelsea and Revere. Follow TND on Facebook and on Twitter, @TND_inc.
http://massachusetts.realestaterama.com/2016/06/10/39-affordable-homes-for-seniors-open-in-revere-ID01429.html
©Copyright 2016 RealEstateRama. All Rights Reserved.
Cambridge Housing Authority to Provide $153M in Affordable Housing Improvements
The Cambridge Housing Authority (CHA) has provided $153 million in affordable housing improvements through its Public Housing Preservation Plan.
Under the plan, CHA will improve 837 affordable housing units at Washington Elms, Newtowne Court, Manning Apartments, Putnam Gardens and Woodrow Wilson Court.
For most of the units, the improvements will include new kitchens and bathrooms, as well as life safety upgrades and energy efficiency improvements. The projects were designed and certified under the Enterprise Green Communities program, and are partly funded by a $1.6 million contribution from Action for Boston Community Development. When completed, the projects will save upwards of $1 million in energy costs annually, enabling CHA to meet its goal of generating 20 percent of its electricity onsite by 2020.
By CHA’s estimate, the ongoing construction at the developments is creating approximately 897 direct jobs and 1,040 indirect jobs through indirect and induced activities. Additionally, the projects are generating an additional output of $150 million through these indirect activities.
Funding for the projects was made possible through CHA’s use of the Rental Assistance Demonstration, an assistance program run by the United States Department of Housing and Urban Development. CHA also participates in HUD’s Moving to Work program, which provides operating support.
The financing of these projects marks a major milestone for CHA, which is now funding the most capital improvements underway in its 80 years of existence.
CHA and community members celebrated the first phase of the development with an event held yesterday at Washington Elms, one of the five sites under construction. Speakers for the event included Cambridge Mayor E. Denise Simmons and City Manager Richard Rossi, as well as financial partners from Wells Fargo Community Lending and Investment and Citi Community Capital.
New Affordable Sober Housing For Homeless Veterans Slated For WeymouthJun 7, 2016
MassHousing recently awarded $75,000 to help create six new units of affordable sober housing for homeless veterans in Weymouth.
The grant will come from the Center for Community Recovery Innovations Inc., a nonprofit subsidiary corporation of MassHousing that supports nonprofits that create or preserve affordable sober housing in Massachusetts for recovering substance abusers.
“Substance abuse is one of the biggest obstacles to many of our veterans being able to live independent and productive lives,’’ MassHousing Executive Director Timothy C. Sullivan said in a statement. “This sober housing in Weymouth and in many other places around the state helps these veterans confront and overcome their addiction in a safe and sober setting that increases their chances of success.’’
NeighborWorks of Southern Massachusetts will receive the grant in the latest round of funding and plans to demolish an existing structure and build a new building containing six affordable units for homeless veterans.
Other funding came from the state Department of Housing and Community Development, the town of Weymouth and Blue Hills Bank.