Tag: affordable housing

CEDAC Honors Community Leader Mel King

The Community Economic Development Assistance Corporation (CEDAC) honored former State Representative Mel King at its 40th anniversary celebration, held on March 14 at the Massachusetts Institute of Technology’s (MIT) Samberg Conference Center. King, a legendary community organizer, crafted the state legislation that created CEDAC in 1978. CEDAC is a community development financial institution that provides early stage financing and technical assistance to community-based and other non-profit organizations engaged in effective community development in Massachusetts.

“Mel King provided the inspiration and vision for the community development movement, with his experiences 40 years ago fighting for community control of development. Mel’s role as an elected official in helping to create a state infrastructure to support community development, including CEDAC, was instrumental. This Massachusetts system serves as a national model of community development, and we are honored to have the opportunity to celebrate his contributions as we mark our 40th anniversary,” said Roger Herzog, CEDAC’s executive director.

At the event, representatives from the state’s community development sector provided lightning talks on CEDAC’s three key program areas: affordable housing preservation; supportive housing; and the Children’s Investment Fund. Participants in the program included former CEDAC and Children’s Investment Fund staff members Vince O’Donnell, Charleen Regan, and Mav Pardee; current CEDAC staff members Bill Brauner, Sara Barcan, and Theresa Jordan; and non-profit community partners Leslie Reid of Madison Park Development Corporation, Lisette Le of Vietnamese American Initiative for Development (VietAID), and Gail Fortes of YWCA Southeastern Massachusetts. Governor Charlie Baker offered congratulatory remarks by video.

As a state representative, King sponsored the legislation that was signed by Governor Michael Dukakis and led to CEDAC’s creation in 1978. The venue for the 40th anniversary event at MIT was fitting, since the idea for a public/private agency that provides technical expertise to non-profit community development organizations was first discussed in weekly sessions that King hosted while teaching at MIT’s Department of Urban Planning and Studies and leading the Community Fellows Program there.

In the 40 years since CEDAC was created, the organization has committed over $402 million in early stage project financing, and has helped to fund the creation or preservation of nearly 50,000 affordable housing units across the Commonwealth. Additionally, CEDAC manages a number of supportive housing bond programs on behalf of the state’s Department of Housing and Community Development (DHCD), with commitments of more than $490 million over the past thirty years. These bond programs include the Housing Innovations Fund (HIF), the Facilities Consolidation Fund (FCF), and the Community Based Housing (CBH) program.

At the same event, the Children’s Investment Fund, an affiliate of CEDAC, presented Judy Cody, executive director of the Beverly Children’s Learning Center (BCLC), with the Mav Pardee Award for Building Quality. The award, which recognizes organizations or individuals working to address the need for physical environments that support high-quality early education, is named after Pardee, who was the Fund’s former program manager. Cody oversaw BCLC’s expansion to a new 16,000 square foot facility that provides safe and affordable early education and care for nearly 160 children in the North Shore region.

“BCLC was one of the first child care facilities to open that utilized grant funding from the Early Education and Out of School Time (EEOST) Capital Fund, and that is because of the tenacity and dedication that Judy Cody demonstrates as executive director,” said Theresa Jordan, Director of Children’s Facilities Finance. “Children’s Investment Fund is proud to honor Judy with the Mav Pardee Award for creating a high-quality early learning environment for low-income children.”

Since it was established in 1990, Children’s Investment Fund has committed $55 million in project financing and state bond resources, and supported the creation or improvement of more than 30,000 child care slots. EEOST is administered by the Massachusetts Department of Early Education and Care in partnership with CEDAC and the Children’s Investment Fund, and it offers child care providers capital resources to develop high-quality early learning facilities.

CEDAC is a Massachusetts community development financial institution that provides predevelopment and acquisition lending along with technical expertise for community-based and other non-profit organizations engaged in effective community development in Massachusetts. CEDAC’s work supports two key building blocks of community development: affordable housing and early education and care. CEDAC is also active in state and national housing preservation policy research and development and is widely recognized as a leader in the non-profit community development industry. For additional information on CEDAC and its current projects, please visit www.cedac.org.

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SourceSouth End News

Gripped By Housing Crisis, Boston Developers Look for Federal Help to Tackle Affordability

Boston developers and policymakers are desperate for more affordable housing tools in the city, but the biggest help may hinge on lawmakers in Washington, D.C.

“I think the biggest challenge is the limited resources,” The Community Builders Vice President of Development Andy Waxman said. “We have a lot of high-quality affordable housing developers, and if there were more resources, we could all get more projects done.”

A leading tool in Boston’s affordable housing toolkit, the Inclusionary Development Policy, led to the creation of 546 new units of affordable housing in 2018, or 21% of the program’s overall production since it was implemented in 2000. While Boston Mayor Martin Walsh was pleased by the news, he and members of the private and public sector speaking Tuesday at Bisnow’s Boston Affordable Housing Conference agreed changes in policy and development practices are crucial in moving Boston’s affordability needle.

“We have members of Congress coming out of the woodwork with affordable housing legislation,” Housing Advisory Group Executive Director David Gasson said.

Gasson and Boston Capital President and CEO Jack Manning are working on reforming the Low-Income Housing Tax Credit (to be renamed the Affordable Housing Tax Credit if the new legislation is passed). The LIHTC offers 9% and 4% tax credits for affordable housing projects, with the higher rate typically reserved for new construction and the lower rate for rehabilitation or new construction projects financed with tax-exempt bonds.

The problem is the credits have often fallen short of the 4% and 9% figure and fluctuated due to market interest and borrowing rates of the federal government, according to a February report by the Congressional Research Service. One goal of the bill, expected to be introduced by U.S. Sen. Maria Cantwell (D-WA), would freeze the 4% rate at its actual level. Doing that alone would, at a conservative estimate, create 65,000 more affordable units.

Low-Income Housing Tax Credits generated in each state are based on population. Originally, the rate was $2.40 per capita. Congress has since provided a 12.5% increase through 2021, and there is a potential for the rate to increase by 50% in the new bill. But Gasson indicated the 4% fix is the top priority.

“This is a gigantic change for our industry and the people that need affordable housing,” Manning said.

Both Manning and Gasson claim to have bipartisan support in both federal legislative chambers.

Along with Cantwell, Sen. Todd Young (R-IN), Sen. Johnny Isakkson (R-GA) and Sen. Ron Wyden (D-OR) are supportive of the bill, according to Manning. Speaker of the House Nancy Pelosi (D-CA 12th), Rep. Richard Neal (D-MA 2nd) and Rep. Kenny Merchant (R-TX 24th) have also supported the bill. More are expected to join.

“There are Republicans clamoring to jump onto the bill, and it hasn’t even been introduced yet,” Gasson said with a laugh.

Beyond federal policy, panelists indicated Boston leaders and developers are doing more at the local level to rein in costs.

Walsh indicated his proposed 2020 city budget includes a historically high level of city funding for the creation and preservation of affordable housing in Boston. After citing a long list of economic accomplishments under his watch, Walsh said there were plenty of initiatives in the works to tackle affordable housing, including an increase in the affordable housing requirement for market-rate developers in the IDP.

“I’m painting a rosy picture here, but there’s still a lot of work we need to do to continue to move forward,” Walsh said.

Forward thinking in the planning and development stages is also crucial to making affordable housing a realistic goal in Boston. Construction costs have gotten so high that Preservation of Affordable Housing Managing Director for Real Estate Development Rodger Brown said his team has looked overseas for building technologies to move a project forward. Instead of stick-frame construction, the developer utilizes modular and panelized materials.

Others are looking for ways to streamline the approval process because it is easy for a project to go over budget simply due to the quick timeline of building costs rising. It can cost a developer around $450K to build a single residential unit in Boston today, and Dellbrook JKS President and CEO Mike Fish said building costs are rising at an average of 5% each year.

“The biggest challenge we see is when we price a project, and then they have to wait four years,” Fish said. “Costs just continue to go up.”

SourceBisnow Boston

Beverly Children’s Learning Center executive director honored

The Children’s Investment Fund, an affiliate of the Community Economic Development Assistance Corporation (CEDAC), presented Judy Cody, executive director of Beverly Children’s Learning Center (BCLC), with the Mav Pardee Award for Building Quality at CEDAC’s 40th anniversary celebration held on March 14 at the Massachusetts Institute of Technology (MIT).

The award recognizes organizations or individuals working to address the need for physical environments that support high-quality early education. Cody oversaw BCLC’s expansion to a new 16,000-square-foot facility that provides safe and affordable early education and care for nearly 250 children each year on the North Shore. At the same event, former State Rep. Mel King was honored.

King, a legendary community organizer, crafted the state legislation that created CEDAC in 1978. CEDAC is a community development financial institution that provides early stage financing and technical assistance to community-based and other non-profit organizations engaged in effective community development in Massachusetts.

In 2015, Cody led the first-ever capital campaign for Beverly Children’s Learning Center, raising over $2 million for a new state-of-the-art early education and childcare center in Beverly.

The campaign included $1 million grant funding from the Early Education and Out of School Time (EEOST) Capital Fund. EEOST is administered by the Department of Early Education and Care in coordination with CEDAC and the Children’s Investment Fund.

“BCLC was one of the first child care facilities to open that utilized grant funding from the Early Education and Out of School Time (EEOST) Capital Fund, and that is because of the tenacity and dedication that Judy Cody demonstrates as executive director,” said Theresa Jordan, Director of Children’s Facilities Finance at Children’s Investment Fund. “Children’s Investment Fund is proud to honor Judy with the Mav Pardee Award for creating a high-quality early learning environment.”

Founded in 1973, BCLC has served over 10,000 children and families in the Beverly area. Their new space has allowed them to dramatically improve their programs and services, providing individual environments conducive to high quality care, learning and security while allowing opportunities for intentional interaction among the different age groups they serve (newborn through early teen).

To maximize the impact of their new space, BCLC, under Cody’s leadership, will complete this spring the second phase of improvements with a new 25,000-square-foot natural outdoor learning play scape. The play scape includes a large array of natural interactive features designed to encourage more physical activity and creative play, including sensory gardens, mud kitchens, climbing hills and water stations.

BCLC will host a ribbon cutting for the play scape from 9:30 to 10:30 a.m. on Thursday, May 16. For more information, visit www.bclckids.org or email info@bclckids.org.

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SourceWicked Local

Roger Herzog Discusses CEDAC’s 40th Anniversary in OA On Air Podcast

This week, Suzanne sits down with Roger Herzog, the executive director of the Community Economic Development Assistance Corporation (CEDAC), about the organization’s 40th anniversary and why they are honoring former State Representative Mel King.

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SourceOA On Air

For 40 Years, CEDAC Has Catalyzed Positive Change

For 40 Years, CEDAC Has Catalyzed Positive Change

Early-Stage Assistance Has Helped Build Housing, Transform Communities

By Roger Herzog

Special to Banker & Tradesman

In 1978, then- state representative Mel King introduced legislation that created the Community Economic Development Assistance Corporation (CEDAC), the nation’s first state agency designed to provide technical assistance to the burgeoning non-profit community development movement.  The idea of such an agency grew out of the Wednesday Morning Breakfast Group meetings convened by Mel at MIT with community activists and planners.  In Boston, the Group’s primary focus was the desire to establish community control over the redevelopment of acres of land in the heart of neighborhoods in the southwest area of the city that the state had taken by eminent domain for an inner belt highway.  The highway was stopped through community activism and by 1978, it had become clear that there was a need for an agency like CEDAC.

In the 40 years since we were established by an act of the legislature, Massachusetts and the community development sector have changed tremendously. And so has CEDAC.  We started as an economic development organization that provided technical assistance to community-based non-profits focused on small business development and job creation. But as the Commonwealth’s economy changed, we’ve evolved into a community development financial institution that provides early stage financing and technical assistance to non-profits seeking to produce and preserve affordable housing and non-profit early education facilities, through our affiliate, Children’s Investment Fund.

While it’s not easy to sum up 40 years of community development work, with its complications and challenges, the best way to share our accomplishments is to look at a sample of some of the non-profit development projects we’ve assisted:

Preserving affordable housing – the Chapman Arms story: since the early 1980s, CEDAC has fought to preserve the long-term affordability of subsidized multifamily housing, which is threatened by the time-limited use restrictions used as part of federal and state financing programs in the 1960s and 1970s.  In 2009, the state passed an affordable housing preservation law, Chapter 40T, which provided the Commonwealth with new tools to monitor and address this expiring use challenge. One of the key tools is purchase rights that allow the Commonwealth’s Department of Housing and Community Development (DHCD) or its designee to acquire and preserve expiring affordable housing projects if an owner proposes to sell a building.  In 2011, Chapman Arms, in Cambridge’s Harvard Square, became the first major project whose affordability was preserved through the use of Chapter 40T’s purchase rights. CEDAC delivered technical assistance to DHCD and its non-profit designee, Homeowner’s Rehab Inc., as well as a rapid commitment and closing on acquisition financing to preserve this mixed income 50-unit property.

Revitalizing neighborhoods – Northampton’s Live 155: Last year, Way Finders, a community development corporation (CDC) focused on Western Massachusetts, opened Live 155 in Northampton.  The mixed-use, mixed-income, new construction development of 70 apartments has helped to transform an important neighborhood in that city, a gateway into the downtown district.  CEDAC provided $2.6 million in early stage acquisition and predevelopment funding for that project, and similarly provided financing for Lumber Yard Apartments, a project by the Valley CDC across the street. These two projects have spurred significant public investment from the city, the state, and private partners.  This is only one recent example of the effective role of CEDAC’s early stage assistance that supports community non-profits’ transformative efforts.  Boston’s Jackson Square (where the original neighborhood battle against highway construction was waged) and Worcester’s Kilby-Gardner-Hammond are also examples where we’ve worked with community partners to reinvigorate those neighborhoods.

Supporting equitable transit-oriented development – the Residences at Fairmount Station: Late last year, Southwest Boston CDC and their development partner Traggorth Companies opened the Residences at Fairmount Station in Hyde Park, a 27-unit affordable housing development.  The Residences represent equitable transit-oriented development – affordable housing built near the MBTA’s new Fairmount Corridor commuter rail line.  Locations near transit offer opportunities for increased development density, and CEDAC and its financing partners provided $1.2 million in acquisition and predevelopment financing to ensure that low and moderate income residents can access these desirable locations.

CEDAC is celebrating our 40th anniversary at an event this March and we will honor Mel King for both his vision and his belief in the power of people to strengthen their communities.  In the four decades since he introduced that legislation, Massachusetts has evolved into a national model of community development, in large part because of the institutional framework he helped to create.  It’s gratifying for us to look at the innovative projects above and recognize we are carrying on an important legacy.

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

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SourceBanker & Tradesman

Baker-Polito Administration Advances New Affordable Housing Production Throughout Commonwealth

Today, Lt. Governor Karyn Polito, Housing and Economic Development Secretary Mike Kennealy, and Housing and Community Development Undersecretary Janelle Chan joined Worcester City Manager Edward M. Augustus Jr., Senator Harriette Chandler, Representative Mary Keefe and local leaders and developers to announce affordable housing awards to support the creation of 643 new rental housing units, including 397 units of affordable housing.

The awards represent an investment by the administration through more than $45 million in direct subsidy, and the allocation of more than $22 million in state and federal low-income housing tax credits. The announcement took place at the former Worcester Courthouse, a development that will benefit from state funding announced today, and will be revitalized and transformed into 117 new, mixed-income housing units.

“We will continue investing in the production and preservation of affordable housing here in Massachusetts to meet the needs of residents across the income spectrum and support the continued growth of our economy,” said Governor Charlie Baker. “Since 2015, we’ve infused more than $1 billion in the affordable housing ecosystem, from new production to the rehabilitation of existing private and public housing stock, and we look forward to working with our partners in the Legislature to pass our Housing Choice Legislation into law, which will help communities advance new housing production and facilitate long-term, forward-thinking planning.”

“It is inspiring to see the historic Worcester Courthouse receive new life with today’s awards, and our administration is pleased to support innovative and adaptive housing projects like this that transform a property to meet the needs of cities and towns across the state,” said Lt. Governor Karyn Polito. “New, affordable rental housing provides families and residents with not only a home, but with stability in their community, and a foundation from which to thrive, and we will continue to invest in affordable, quality housing options for all.”

“Our strong economy and high quality of life here in Massachusetts continues to attract new residents in cities and towns throughout the Commonwealth, and it is crucial that we have a healthy supply of housing affordable to all families,” said Housing and Economic Development Secretary Mike Kennealy. “Today’s awards represent an important component of our strategy to encourage housing development in our diverse cities and towns, complementing other programs that help advance housing production – such as MassWorks Infrastructure Awards, the Housing Development Incentive Program, Open for Business, and our Housing Choice Initiative – to support smart, forward-thinking housing development.”

“When our families are stable, so are our communities. Neighborhoods with housing that is affordable to a wide range of incomes can build and preserve inclusive communities,” said Housing and Community Development Undersecretary Janelle Chan. “These nine projects will bring substantial new housing to neighborhoods across Massachusetts, and we are proud to increase the number of opportunities throughout the year for projects to receive funding and tax credit allocations from the Department of Housing and Community Development. We look forward to celebrating more milestones, and welcoming residents to their new homes.”

Yesterday, Governor Baker and Lt. Governor Polito announced the refiling of Housing Choice legislation, originally submitted to the Legislature last session to better facilitate the production of housing in every region of the state. The legislation, which complements the Governor’s Housing Choice Initiative, will deliver targeted zoning reform related to housing. The legislation lowers the voting threshold for cities and towns from a supermajority to a simple majority to adopt certain, housing related zoning changes.

“I want to thank Governor Baker and Lieutenant Governor Polito for their continued support of economic development in the City of Worcester and the revitalization of Lincoln Square,” said Worcester Mayor Joseph M. Petty. “The old courthouse is truly one of the most anticipated projects currently under construction in Worcester and I look forward to the great work Trinity is doing here.  With rentals being offered at five different income levels this is truly a mixed income community that will help anchor future development of north Main Street.”

“The Worcester Courthouse Apartments project is a historic rehabilitation that will transform one of the city’s architectural gems into 47 affordable rental units as well as 70 units at workforce and market rate rents,” said Worcester City Manager Edward M. Augustus Jr. “We’re grateful for the continued support of the Baker-Polito Administration in making affordable housing a priority in Worcester and throughout the Commonwealth.”

“Having a place to call home should be more than just a hopeful aspiration. Rich or poor, we must ensure that everyone in the Commonwealth has a place to live. I am happy that this funding has been secured to ensure affordable housing in Worcester and Central Massachusetts,” said Senator Harriette L. Chandler.

“This apartment project is going to have significant impact and create big change, not only in the southwest corner of Lincoln Square, but also on the Cultural District and the North end of Main Street,” said Representative Mary Keefe. “However, while we dream of what’s to come, I am really happy to see us look to our past to appreciate the historic significance of this building and area, and that we’re inviting the public ‘in’ to celebrate and share.”

“We are thrilled to receive this award and are grateful for the support of Lieutenant Governor Polito, Senator Chandler, Representative Keefe, and the City of Worcester,” said Trinity Financial principal and co-founder Patrick Lee. “This will be an important piece of Worcester’s ongoing revitalization and will help create new mixed-income homes while bringing this historic building back to life.”

The Baker-Polito Administration has shown a deep commitment to increasing the production of housing across income levels. Since 2015, the administration has invested more than $1 billion in affordable housing, resulting in the production and preservation of more than 17,000 housing units, including 15,000 affordable units. In 2018, Governor Baker signed the largest housing bond bill in Massachusetts history, committing more than $1.8 billion to the future of affordable housing production and preservation. The Baker-Polito Administration has also advanced the development of more than 7,000 mixed-income housing units through the successful MassWorks Infrastructure Program, reformed the Housing Development Incentive Program, and worked with communities to implement smart-growth development and planning efforts.

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Affordable Housing Awards:


Downing Square, Arlington

This 48-unit new construction project is located on two sites in Arlington. The sponsor is the non-profit Housing Corporation of Arlington. DHCD is providing federal and state low income housing tax credits and subsidy funds in support of the project and the Town of Arlington is also supporting the project with significant local funding. When completed, Downing Square will offer 48 affordable family rental units.

Cote Village, Boston

A two-phase, 76-unit new construction project located on the former Cote Ford site in Boston is sponsored by the non-profit Caribbean Integration Community Development Corporation and the Planning Office of the Archdiocese of Boston. DHCD is supporting both phases of the transit-oriented project with a blend of federal and state low income housing tax credits and subsidy funds and the City of Boston also is providing funds in support of Cote Village. When completed, the project will offer 57 affordable rental units for families as well as 19 workforce or market rate units.

Indigo Block, Boston

Indigo Block is an 80-unit new construction project located in Boston. The non-profit sponsor is Escazu Development. DHCD is supporting the project with federal and state low income housing tax credits and subsidy funds, and the City of Boston also is providing substantial support for Indigo Block. When completed, the project will offer 44 affordable family rental units as well as 36 workforce or market rate rental units on a transit-oriented site.

Michael Haynes Arms, Boston

This 55-unit new construction project located in Boston is sponsored by Cruz Development Corporation. DHCD is supporting the project with federal and state low income housing tax credits as well as subsidy funds.  The City of Boston also is supporting Michael Haynes Arms with local funding. When completed, the project will offer 39 affordable rental units as well as 16 workforce or market rate rental units.

Library Commons, Holyoke

The project is a 38-unit scattered site project located in Holyoke, sponsored by the non-profit Way Finders, Inc. DHCD is supporting the project with federal and state low income housing tax credits and subsidy funds, and the City of Holyoke also is providing support to Library Commons. When completed, the project will offer 38 affordable rental units for families.

Parcels 8 and 9, Lowell

This project is a mixed-income historic rehabilitation project located in Lowell, sponsored by WinnDevelopment.  DHCD is supporting the project with federal and state low income housing tax credits and subsidy funds. The City of Lowell also is providing support to Parcels 8 and 9 through local funding.  When completed, the project will offer 32 affordable rental units as well as 86 workforce or market rate rental units.

571 Revere, Revere

The development is a 51-unit mixed-income new construction project located in Revere.  The sponsor is the non-profit The Neighborhood Developers. DHCD is supporting the project with federal and state low income housing tax credits as well as subsidy funds.  The City of Revere also is supporting the project with local funding.  When completed, the project will offer 32 affordable rental units and 19 workforce rental units.

Mason Square, Springfield

Mason Square is a 60-unit project located in Springfield. The sponsor is First Resource Development. DHCD is supporting the project with federal and state low income housing tax credits and subsidy funds.  The City of Springfield also is supporting the project with local funding. When completed, Mason Square will offer 60 affordable rental units for families, including several units in the historic re-use of a former fire station.

Worcester Courthouse Apartments, Worcester

The 117-unit historic rehabilitation project located in Worcester is sponsored by is Trinity Financial, Inc. DHCD is supporting the project with federal and state low income housing tax credits and subsidy funds. The City of Worcester also is supporting the project with local funding, re-zoned the site, and has helped expedite the permitting process. When completed, Worcester Courthouse Apartments will offer 50 affordable rental units for families as well as 67 units at workforce or market rate rents.

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SourceOffice of Governor Charlie Baker and Lt. Governor Karyn Polito

Baker-Polito Administration Files New Housing Legislation to Increase Housing Production in Massachusetts

Today, Governor Charlie Baker filed legislation to further the administration’s Housing Choice Initiative, a bold plan to support the production of 135,000 new housing units by 2025. This bill builds on efforts undertaken last legislative session to deliver necessary, targeted zoning reform to benefit communities pursuing new housing production.

The Baker-Polito Administration developed the Housing Choice Initiative to offer a combination of incentives, technical assistance and new capital grant funding to facilitate community-led housing production across the Commonwealth. This diverse set of tools for communities is intended to create the conditions for sustainable housing development that meets the needs of current and future residents.

“Today, we have more people working in Massachusetts than at any time in our Commonwealth’s history, and the need for substantially increased housing production –for residents across the income spectrum – is necessary to match Massachusetts’ booming economic growth,” said Governor Charlie Baker. “This legislation is critical, will unlock the potential of our cities and towns committed to responsible growth, development and enacting best practices in sustainable housing production and we are committed to working with stakeholders and our partners in the legislature to make it a reality.”

“The Commonwealth’s cities and towns are eager to meet the needs of their residents and we are thrilled that 69 communities have already received a Housing Choice Community designation, showing their commitment to housing production,” said Lt. Governor Karyn Polito. “This legislation is the next step in fulfilling our commitment to Massachusetts residents, creating the conditions for all of our families and individuals to live, work, and thrive across the state.”

When the Baker-Polito Administration first unveiled the Housing Choice Initiative in 2017, in addition to the changes proposed through legislation, the comprehensive initiative also created a new system of incentives and rewards for municipalities to deliver sustainable housing growth by designating communities that are producing new housing units and have adopted best practices with a new “Housing Choice Communities.” It also created a new technical assistance toolbox empowering cities and towns to plan for new housing production.

Since the Housing Choice Initiative program’s inception, the Baker-Polito Administration has awarded $5 million in capital funding to 31 communities, and with its partnership with MassHousing, 14 communities have received technical assistance to advance the production of more than 4,000 new housing units.

The bill filed by the Governor today mirrors the legislation filed by the Governor in the last legislative session and includes changes made by the legislature in House Bill 4290 An Act to Promote Housing Choices.

This proposal will enable cities and towns to adopt certain zoning best practices related to housing development by a simple majority vote, rather than the current two-thirds supermajority. This legislation will not mandate cities and towns to make any of these zoning changes; but will allow municipalities that want to rezone for denser, transit or downtown oriented, and new housing development to do so more easily.

Zoning changes that promote best practices for housing growth that would qualify for the simple majority threshold include:

  • Building mixed-use, multi-family, and starter homes, and adopting 40R “Smart Growth” zoning in town centers and near transit.
  • Allowing the development of accessory dwelling units, or “in-law” apartments.
  • Approving Smart Growth or Starter Homes districts that put housing near existing activity centers.
  • Granting increased density through a special permit process.
  • Allowing for the transfer of development rights and enacting natural resource protection zoning.
  • Reducing parking requirements and dimensional requirements, such as minimum lot sizes.

This legislation also includes a provision, added by the Joint Committee on Housing, that would reduce the voting threshold for a special permit issued by a local permit granting authority to a simple majority vote, for certain multi-family or mixed-use projects with at least 10% affordable units in locations near transit or, in centers of commercial activity within a municipality.

Massachusetts is currently one of only a few states to require a supermajority to change local zoning.

“We have an incredible economy here in Massachusetts, capitalizing on our talented workforce, thriving innovation ecosystem,” said Housing and Economic Development Secretary Mike Kennealy. “Attracting and retaining talent – including the Commonwealth’s newly graduated students, young families and workforce – continues to be a paramount concern. This legislation is an important step in ensuring Massachusetts cities and towns can create welcoming communities that leverage their existing assets, like thriving downtowns and vital transportation hubs.”

“Since launching our Housing Choice Initiative, we have provided technical assistance and access to new capital grant funding to numerous communities committed to housing production,” said Housing and Community Development Undersecretary Janelle Chan. “This legislation is a necessary component to our overall effort to encourage and support municipalities and, together, pro-actively move high-quality projects forward to address our current and growing need for new housing in Massachusetts.”

“There is perhaps no more critical issue impacting Massachusetts’ cities and towns today than the issue of housing. Like many communities in Greater Boston, Salem is witnessing a sharp decline in the affordability and availability of housing for people who live and work here. We are fortunate to have a city that has a rich mix of people from different backgrounds, income levels, cultures, and more. That diversity contributes to the character of our community in a meaningful way and is a part of our nearly 400 year old history. However, the current housing crisis is threatening that character as, too often, the many faces of Salem – seniors on fixed incomes, working families, young adults – all are finding our city increasingly unaffordable. We want Salem to continue to be a place that people of all means can call home. While we are pushing for policies and investments on the local level to address this growing challenge, we need a strong partnership with state leaders to advance legislation, including Housing Choice, that can make these reforms possible in the first place. I am proud to stand with Governor Baker and other advocates for sensible, compassionate housing policy, to ensure that Salem can be home for anyone,” said Salem Mayor Kim Driscoll.

“Easthampton’s designation as a Housing Choice community gave our city access to multiple tools that unlocked long standing impediments to growing our housing stock and encouraging mixed – use development.  This designation allowed our city to vertically stack grants and economic incitements.  Our ability to leverage public dollars to attract private investment makes tangible the vital connection between housing, jobs and sustainable smart growth,” said Easthampton Mayor Nicole LaChapelle.

“Creating more housing choices requires local communities across the Commonwealth to be creative and adaptable.  It also requires an approach that’s appropriate for each individual community. That’s what makes the Housing Choice Initiative such a great approach.  It gives every community new tools, from grant opportunities to technical assistance to best practices, that allows each to craft plans that make sense locally while at the same time helping address the overall housing challenge,” said Cohasset Town Manager Christopher Senior.

“This important legislation will provide communities with vital tools and authority to address our housing production needs,” said Massachusetts Municipal Association Executive Director Geoff Beckwith. “We applaud the Baker-Polito Administration for recognizing that true progress in making housing more affordable can only be achieved when the state and cities and towns work together as partners.  This bill embraces that partnership, and the MMA looks forward to working with all coalition partners to bring meaningful zoning reform that respects local decision-making across the finish line.”

“We can’t confront our housing and climate crises without local zoning changes, so we hope to see the Legislature fast-track this bill in 2019,” said André Leroux, Executive Director of the Massachusetts Smart Growth Alliance. “Thanks to the Governor’s support and the work of the Joint Committee on Housing, it also includes a key reform to encourage developers to build more of the affordable homes that our state desperately needs.”

“Housing Choice needs to pass, preferably over the next few months, before town meetings start in the spring,” said Marc Draisen, Executive Director of the Metropolitan Area Planning Council (MAPC). “The bill would really help cities and towns to amend zoning and issue permits that will boost housing production. The legislation was thoroughly vetted in the last session, so MAPC hopes it can pass quickly this time around.”

“Passage of the Housing Choices Bill is our top priority,” said Hunter Marosits, Vice-President of H and R Homes Remodeling, Inc. in Wilbraham and President of the Home Builders and Remodelers Association of Massachusetts. “Making it easier for communities to adopt zoning for housing will benefit young couples seeking to buy their first home, growing families looking to trade up, and downsizing baby boomers wishing to live near their children and grandchildren.”

“The Greater Boston Chamber of Commerce applauds Governor Baker for his continued focus on remedying the Commonwealth’s housing shortage, and we are pleased to see the Administration’s Housing Choice bill back on the legislative track,” said James E. Rooney, President and CEO of the GBCC. “The rising cost of living in Greater Boston is a critical issue impacting our regional and economic competitiveness. Governor Baker’s proposal would take meaningful steps forward by increasing workforce housing development and rewarding that development with potential transportation investments, two initiatives that are strongly supported by the business community. We are eager to see this bill advance, and quickly.”

“The state’s housing crunch is not just a Boston problem, but also a suburban problem. The legislation will help communities allow the type of housing in the right area that helps promote community stability and economic growth. It is as much an economic development bill as it is a housing bill,” said Peter Forman, President & CEO of the South Shore Chamber of Commerce.

“We know the vast majority of people age 50 and older want to stay in their homes and communities for as long as possible.  With the Housing Choice bill, Governor Baker is again taking steps to help Massachusetts residents age in place. This bill allows for the development of new housing models, promotes accessory dwellings, and encourages construction in areas and neighborhoods that have accessible resources,” said Mike Festa, State Director of AARP Massachusetts.

The Baker-Polito Administration has shown a deep commitment to increasing the production of housing across income levels. Since 2015, the administration has invested more than $1 billion in affordable housing, resulting in the production and preservation of more than 17,000 housing units, including 15,000 affordable units. In 2018, Governor Baker signed the largest housing bond bill in Massachusetts history, committing more than $1.8 billion to the future of affordable housing production and preservation. The Baker-Polito Administration has also advanced the development of more than 7,000 mixed-income housing units through the successful MassWorks Infrastructure Program, reformed the Housing Development Incentive Program, and worked with communities to implement smart-growth development and planning efforts.

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SourceOffice of Governor Charlie Baker and Lt. Governor Karyn Polito

Designing Home & Hope: Pairing Housing and Early Childhood Education Facilities — Case Studies from Boston and Seattle

Theresa Jordan, Director of Children’s Facilities Finance of CEDAC’s affiliate Children’s Investment Fund, was pleased to be a panelist for the Enterprise Community Partners webinar in February entitled “Designing Home & Hope: Pairing Housing and Early Childhood Education Facilities — Case Studies from Boston and Seattle.” Enterprise published the Home & Hope report in 2018 to document the development process and considerations for co-locating housing and early education and care. Over 70 participants from across the country joined the webinar.

Check out the recorded webinar online.

»

SourceEnterprise Community Partners

SJC Homeowner’s Rehab Case has Significant Implications for Tax Credit Developers and Syndicators

Mayor Martin J. Walsh together with LIHC Investment Group, one the nation’s largest investors in affordable housing, the Boston Housing Authority, Mass Alliance of HUD Tenants (MAHT), and Greater Boston Legal Services (GBLS), today announced HUD approval of a creative plan to keep Concord Houses in the South End affordable for at least the next 40 years, with the support of the building’s tenants.

“As we build more affordable housing, it is critical that we do not lose sight of the need to preserve Boston’s inventory of income-restricted housing,” said Mayor Martin J. Walsh. “This agreement marks a positive resolution reached to keep these residents in their homes for decades to come. I thank all the residents for their advocacy, and all partners involved who helped ensure the long-term affordability and viability of the Concord Houses.”

“This agreement is the culmination of a multi-year effort to establish a new HUD program that will protect current and future residents of Concord Houses while providing funds for repairs and upgrades throughout the property,” said Charlie Gendron, Principal, LIHC Investment Group. “We appreciate the support we received from the tenants; Congress, especially the efforts of Sen. Susan Collins; HUD; the City of Boston; BHA; MAHT; and GBLS in our drive to preserve this property for future generations.”

Spanning two buildings located at 705-715 Tremont Street in the heart of the South End, Concord Houses has served as an important source of income-restricted housing in the South End for decades. In 2017, the HUD subsidy provisions governing the property expired, putting it at risk of losing its long-term affordability.

Of the 181 households at Concord Houses, 171-or 95 percent of households-chose to sign a waiver to convert their Enhanced Vouchers (EVs) to a new project-based rental assistance (PBRA) contract to make the plan work. The new HUD contract ensures homes at Concord Houses will be reserved for individuals earning no more than 80 percent area median income (AMI) and is renewable for a total of 40 years.

The agreement also guarantees that current and future tenants pay no more than 30 percent of their income toward rent, which will actually reduce the rent burden for 30 existing households at the property. The remaining ten households will receive rent protections in the form of EVs administered by BHA.

“Preserving units of affordable housing like those at Concord House is a key element of Boston’s housing strategy,” said Roger Herzog, Executive Director of the Community Economic Development Assistance Corporation (CEDAC), which works closely with DND on preservation issues and provided technical assistance in this case. “Congratulations to the City of Boston, the project residents, and LIHC Investment Group, and their partners, for thinking creatively to find a way to keep Concord House affordable for individuals and families in the South End.”

“It’s a dream to secure permanently affordable housing here — not just for ourselves, but other people who will be here long after we’re gone,” said Pauline Durant, 85, a 20-year resident of Concord Houses and member of the Concord Houses Tenants Association. “It’s been a long journey. When tenants stay together and fight, we win!”

“We’re very elated by this victory,” added Adella Quinn, 76, a retiree from Fidelity Investments and 24-year resident of Concord Houses. “We’re losing too many people in the South End who are assets to the neighborhood due to rising rents. We need to come up with more ways like this to keep our community affordable.”

“This is an historic victory,” commented Michael Kane, Director of MAHT, which helped the tenants organize. Since 1983, MAHT has saved more than 12,450 homes like Concord Houses as affordable housing, one building at a time, through tenant organizing. “Saving affordable housing in the heart of the South End will help maintain the neighborhood’s racial and economic diversity well into the future. The 171 tenants who signed up to preserve their apartments are to be commended for making this possible.” Kane also lauded LIHC and the City of Boston for supporting the tenants’ preservation plan and working creatively with Congress and HUD to make it work.

Attorneys for GBLS, Susan Hegel and Ann Jochnick, said they are pleased with the creative and collaborative process, which resulted in preserving much-needed affordable housing in the South End. “It’s a win for current and future tenants, a win for the city and a win for the owner.  We hope that this may serve as a model for future preservation efforts.”

LIHC Investment Group is undertaking a $7 million repair and capital improvement campaign at the property, which includes a new entry system and security cameras; flooring and ceiling replacement; lighting upgrades in the building’s common areas; and exterior work ranging from masonry repair to new fencing and landscaping. Under LIHC’s ownership, apartments in the building have already received new kitchen cabinets, granite countertops and appliances; upgraded bathroom fixtures, tubs, and tiles; and vinyl plank flooring.

About the City of Boston’s Housing Agenda

In 2018, Mayor Martin J. Walsh updated his comprehensive housing strategy, Housing A Changing City: Boston 2030 to increase the City’s overall housing goal from 53,000 to 69,000 new units by 2030, including 15,820 new income-restricted units, to meet Boston’s population growth. In addition, the updated plan also set a goal to preserve 85 percent of Boston’s most at-risk privately-owned affordable units, like those at Concord House. Mayor Walsh’s recently announced housing security legislative package focuses on expanding upon the work that Boston has done to address the region’s affordable housing crisis by proposing new and strengthening current tools to create more ways to leverage Boston’s prosperity and create sustainable wealth opportunities that make Boston a more inclusive and equitable city. The housing security bills proposed for the 2019 Legislature seek to help existing tenants like those at Concord House, particularly the elderly, remain in their homes, and creates additional funding for affordable housing.

About LIHC Investment Group

Based in Portland, Maine, LIHC Investment Group has been active in the Greater Boston housing market for over two decades. In July 2017, the company donated its ownership stake in the Close Building, a 61-unit affordable housing community in Cambridge, ­to the nonprofit Just-A-Start Corporation, which develops, own and maintains affordable housing; provides housing resources and services; and offers education and workforce training for youth and adults in Boston. In August 2017, LIHC and Weston Associates forged an agreement to keep 380 homes at Shore Plaza Apartments in East Boston affordable and have since completed a major capital repair campaign for the property.

SourcePreservation of Affordable Housing

Landmark Agreement Reached to Preserve Affordable Housing in the South End

Mayor Martin J. Walsh together with LIHC Investment Group, one the nation’s largest investors in affordable housing, the Boston Housing Authority, Mass Alliance of HUD Tenants (MAHT), and Greater Boston Legal Services (GBLS), today announced HUD approval of a creative plan to keep Concord Houses in the South End affordable for at least the next 40 years, with the support of the building’s tenants.

“As we build more affordable housing, it is critical that we do not lose sight of the need to preserve Boston’s inventory of income-restricted housing,” said Mayor Martin J. Walsh. “This agreement marks a positive resolution reached to keep these residents in their homes for decades to come. I thank all the residents for their advocacy, and all partners involved who helped ensure the long-term affordability and viability of the Concord Houses.”

“This agreement is the culmination of a multi-year effort to establish a new HUD program that will protect current and future residents of Concord Houses while providing funds for repairs and upgrades throughout the property,” said Charlie Gendron, Principal, LIHC Investment Group. “We appreciate the support we received from the tenants; Congress, especially the efforts of Sen. Susan Collins; HUD; the City of Boston; BHA; MAHT; and GBLS in our drive to preserve this property for future generations.”

Spanning two buildings located at 705-715 Tremont Street in the heart of the South End, Concord Houses has served as an important source of income-restricted housing in the South End for decades. In 2017, the HUD subsidy provisions governing the property expired, putting it at risk of losing its long-term affordability.

Of the 181 households at Concord Houses, 171-or 95 percent of households-chose to sign a waiver to convert their Enhanced Vouchers (EVs) to a new project-based rental assistance (PBRA) contract to make the plan work. The new HUD contract ensures homes at Concord Houses will be reserved for individuals earning no more than 80 percent area median income (AMI) and is renewable for a total of 40 years.

The agreement also guarantees that current and future tenants pay no more than 30 percent of their income toward rent, which will actually reduce the rent burden for 30 existing households at the property. The remaining ten households will receive rent protections in the form of EVs administered by BHA.

“Preserving units of affordable housing like those at Concord House is a key element of Boston’s housing strategy,” said Roger Herzog, Executive Director of the Community Economic Development Assistance Corporation (CEDAC), which works closely with DND on preservation issues and provided technical assistance in this case. “Congratulations to the City of Boston, the project residents, and LIHC Investment Group, and their partners, for thinking creatively to find a way to keep Concord House affordable for individuals and families in the South End.”

“It’s a dream to secure permanently affordable housing here — not just for ourselves, but other people who will be here long after we’re gone,” said Pauline Durant, 85, a 20-year resident of Concord Houses and member of the Concord Houses Tenants Association. “It’s been a long journey. When tenants stay together and fight, we win!”

“We’re very elated by this victory,” added Adella Quinn, 76, a retiree from Fidelity Investments and 24-year resident of Concord Houses. “We’re losing too many people in the South End who are assets to the neighborhood due to rising rents. We need to come up with more ways like this to keep our community affordable.”

“This is an historic victory,” commented Michael Kane, Director of MAHT, which helped the tenants organize. Since 1983, MAHT has saved more than 12,450 homes like Concord Houses as affordable housing, one building at a time, through tenant organizing. “Saving affordable housing in the heart of the South End will help maintain the neighborhood’s racial and economic diversity well into the future. The 171 tenants who signed up to preserve their apartments are to be commended for making this possible.” Kane also lauded LIHC and the City of Boston for supporting the tenants’ preservation plan and working creatively with Congress and HUD to make it work.

Attorneys for GBLS, Susan Hegel and Ann Jochnick, said they are pleased with the creative and collaborative process, which resulted in preserving much-needed affordable housing in the South End. “It’s a win for current and future tenants, a win for the city and a win for the owner.  We hope that this may serve as a model for future preservation efforts.”

LIHC Investment Group is undertaking a $7 million repair and capital improvement campaign at the property, which includes a new entry system and security cameras; flooring and ceiling replacement; lighting upgrades in the building’s common areas; and exterior work ranging from masonry repair to new fencing and landscaping. Under LIHC’s ownership, apartments in the building have already received new kitchen cabinets, granite countertops and appliances; upgraded bathroom fixtures, tubs, and tiles; and vinyl plank flooring.

About the City of Boston’s Housing Agenda

In 2018, Mayor Martin J. Walsh updated his comprehensive housing strategy, Housing A Changing City: Boston 2030 to increase the City’s overall housing goal from 53,000 to 69,000 new units by 2030, including 15,820 new income-restricted units, to meet Boston’s population growth. In addition, the updated plan also set a goal to preserve 85 percent of Boston’s most at-risk privately-owned affordable units, like those at Concord House. Mayor Walsh’s recently announced housing security legislative package focuses on expanding upon the work that Boston has done to address the region’s affordable housing crisis by proposing new and strengthening current tools to create more ways to leverage Boston’s prosperity and create sustainable wealth opportunities that make Boston a more inclusive and equitable city. The housing security bills proposed for the 2019 Legislature seek to help existing tenants like those at Concord House, particularly the elderly, remain in their homes, and creates additional funding for affordable housing.

About LIHC Investment Group

Based in Portland, Maine, LIHC Investment Group has been active in the Greater Boston housing market for over two decades. In July 2017, the company donated its ownership stake in the Close Building, a 61-unit affordable housing community in Cambridge, ­to the nonprofit Just-A-Start Corporation, which develops, own and maintains affordable housing; provides housing resources and services; and offers education and workforce training for youth and adults in Boston. In August 2017, LIHC and Weston Associates forged an agreement to keep 380 homes at Shore Plaza Apartments in East Boston affordable and have since completed a major capital repair campaign for the property.

SourceMayor's Office