Tag: community development

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.

BT_Reprint_Herzog_031119

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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

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.

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SourceEnterprise Community Partners

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

Affordable Housing Next Frontier in Health Care

Affordable Housing Next Frontier in Health Care

New Programs, Partnerships and Funding Prioritize Health Improvements

By Roger Herzog and Sara Barcan

Special to Banker & Tradesman

Affordable housing is the next big frontier in health care, and community development practitioners are catalyzing the growing discussion on social determinants of health, defined by the Centers for Disease Control and Prevention (CDC) as “conditions in the places where people live, learn, work and play that affect a wide range of health risks and outcomes.”

In Massachusetts, we are at a critical juncture: health care policymakers seek to rein in high costs while their housing counterparts are increasing efforts to reduce chronic homelessness and address affordable housing shortages. These challenges are intertwined, especially when reviewing the growing body of research that demonstrates the negative health outcomes and high health costs for homeless and rent-burdened families.

On the housing side, the Department of Housing and Community Development (DHCD) and CEDAC have funded over 3,000 supportive housing units since 2013. We’ve achieved this through a twofold effort that includes improved coordination between housing and health/human services agencies, and increases to the state’s capital budget for housing, especially supportive housing for people experiencing homelessness, elders, persons with disabilities, veterans and unaccompanied youth.

The state makes innovative use of health care and human services resources, including Medicaid, to pay for clinical supports and services that stabilize tenancies and allow residents to succeed in community-based housing. This year was a very important year, as the Legislature and the Baker administration enacted a $1.8 billion housing bond bill, which authorized the capital funds that the state uses to construct supportive housing.

For decades, CEDAC has managed supportive housing capital programs on DHCD’s behalf. Several of these programs, including the Facilities Consolidation Fund and the Community Based Housing program, help to ensure that people with chronic disabilities may live in the community rather than the institutions that housed them previously. Residents of this housing access care and supportive services in their own homes. Medicaid waivers pay for many of these services; we know that they help to keep people out of institutions and can save health care dollars. So it’s nothing new for Massachusetts to capitalize on the intersection of housing and services: for decades, we’ve provided capital and operating subsidies for buildings while Medicaid has covered the supports.

Social Determinants Become Larger Consideration

In recent years, the health care sector has begun to connect its growing understanding about the impacts of these social determinants into their planning and investment decisions. The federal Patient Protection and Affordable Care Act established new opportunities to foster increased collaboration between housing and health care providers. Attorney General Maura Healey and the Department of Public Health have issued updated guidance for community benefits from hospitals and determination of need rules, both of which serve as the oversight framework for hospital performance and accountability. The health sector is responding, with innovative approaches in the community health needs assessment process and plans to utilize financial and real estate assets to align with their mission.

For instance, Boston Medical Center (BMC) recently announced it would invest $6.5 million and work with community partners to support new affordable housing to reduce medical costs. As BMC’s Dr. Megan Sandel has said, “housing is a critical vaccine that can pave the way to long-term health and wellbeing.”

BMC’s initiative was significant not only because of the $6.5 million but also because, as stated in its press release, it “represents the first time that a Massachusetts hospital has put all its required community health investment into one social determinant of health – in this case, housing – to satisfy the requirements of the Massachusetts Department of Public Health for a determination of need.”

BMC’s efforts are not restricted to the housing stabilization initiative it is creating with two nonprofits, Pine Street Inn and Boston Health Care for the Homeless Program. The hospital’s Elders Living at Home Program is working with the nonprofit Roxbury-based Madison Park Development Corporation and Winn Management to create a pilot project, a community based Complex Care Management program, at Madison Park Village. A community health advocate and a community wellness nurse work on-site to provide services with the goal of improving health outcomes, independence and housing stability for residents.

These activities bode well for future collaboration between the health care and affordable housing sectors.

A vibrant community development sector in Massachusetts with a proven track record in real estate development is working to strengthen the relationship with health care institutions. And as our experience with supportive housing shows, CEDAC stands ready to help with policy development, early stage financing and technical assistance.

Roger Herzog is the executive director of the Community Economic Development Assistance Corporation. Sara Barcan is CEDAC’s director of housing development.

https://cedac.org/wp-content/uploads/2018/09/BT_Reprint_HerzogBarcan_092418.pdf

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SourceBanker & Tradesman

Ludlow Mill Redeveloped As 75-Unit Mixed-Income Complex

A $19.3 million redevelopment of a 110-year-old historic mill in Ludlow has generated 75 new units of mixed-income senior housing that are already 100 percent leased.

The Residences at Mill 10 contains 63 one-bedroom and 12 two-bedroom apartments for residents ages 55 and older. The complex includes 51 units restricted to households with incomes at or below 60 percent of the area median income (AMI) and 15 set aside for households at or below 30 percent AMI.

Boston-based WinnDevelopment led the project at the 108,163-square-foot building, which is listed on the National Historic Register.

“People began asking to be put on the waiting list for apartments in Mill 10 almost as soon as we began construction, so there is no doubt that the desire for quality housing for seniors in this region is strong,” Larry Curtis, president and managing partner of WinnDevelopment, said in a statement.

The 170-acre former mill complex, formerly the home of the Ludlow Manufacturing and Sales Co., includes more than 60 buildings once used to manufacture rope and twine.

Financing for the project included state and and federal low-income housing tax credits; funding from the housing stabilization fund and HOME fund of the Massachusetts Executive Office of Housing and Community Development; state and federal historic tax credits; tax credit equity from Bank of America; a loan from the Boston Community Loan Fund; money from the Affordable Housing Trust Fund managed by MassHousing; a loan from the town of Ludlow; Facilities Consolidation Fund proceeds from the Community Economic Development Assistance Corporation; a first mortgage from Massachusetts Housing Partnership; project-based subsidies from the U.S. Department of Housing & Urban Development (HUD); and owner equity in the form of a deferred developer fee.

BofA provided construction financing. Quincy-based Dellbrook Construction served as general contractor and The Architectural Team of Chelsea was the architect.

WinnDevelopment also has secured the rights to develop housing at Mill 8, known as the Clock Tower building.

The property is owned by nonprofit Westmass Area Development Corp.

Ludlow Mill Redeveloped As 75-Unit Mixed-Income Complex

SourceBanker & Tradesman

Northampton affordable housing apartment complex ‘The Lumber Yard’ breaks ground

A groundbreaking ceremony was held in Northampton Wednesday for The Lumber Yard Apartments, a new affordable housing complex coming to the city.

The project is the product of Northampton-based non-profit Valley Community Development Corporation (CDC), which dedicates itself to empowering low and moderate income individuals through housing development and home ownership encouragement.

Upon completion, the Lumber Yard, located at 256 Pleasant Street, will be a four-story, 70,000-square complex, replete with 55 units that offers housing to low and moderate income families and individuals. It sits on the site of former lumber business Northampton Lumber, hence its name.

The cost of the project is nearly $19 million. Its development has been facilitated through funding and support from a wide number of organizations and institutions, including the City of Northampton, state organization MassWorks, the state Community Economic Development Assistance Corporation, TD Bank, Way Finders, and Smith College.

Representatives from many of the organizations were present Wednesday, along with Northampton Mayor David Narkewicz and state Secretary of Housing and Community Development Jay Ash, both of whom played roles in providing funding for the project.

Boston-area architect Clifford Boehmer got an earful at Thursday’s joint public hearing.

The Lumberyard has been in development for roughly four-and-a-half years, with predevelopment beginning in 2013, said Joanne Campbell, director of Valley CDC, during her remarks Wednesday. Campbell thanked the project’s many financial backers and contributors, saying that the “collaboration between so many people to make this work has been unbelievable.”

“I really want to thank all those supporters–too many to mention–for the advocacy and friendship during what was sometimes a hairy process,” Campbell said.

The project ran into snags during development, including the discovery of an 1847 storm water conduit that runs under the property that would have to be relocated. Funding for the relocation is being covered by MassWorks, a state infrastructure program.

Other setbacks included a lawsuit from an abutter that was later settled that claimed the project impinged on his property, as well as public complaints about the size and scale of the project during initial public meetings regarding the project.

However, if the building has been met with some pushback it has also been generously assisted by numerous organizations and individuals along the way, Campbell noted Wednesday.

Speaking at the ceremony, Mayor David Narkewicz commended the project and described it as another important addition in a larger initiative to revitalize the Pleasant Street corridor. “This project is part of a larger commitment on the part of the city to make strategic public investments not only to support affordable housing but also economic development,” as well as to further develop “this important corridor to our city,” Narkewicz said.

The agenda to transform Pleasant Street has been an oft touted goal of Narkewicz, who stated earlier this year that the street was “an important gateway” to Northampton that would continue to be targeted for private investment and state grants.

The project will bring 55 affordable units and leverage improvements to Pleasant Street.

Narkewicz further stated Wednesday it had been a pleasure to work with Secretary Ash on the project.

Ash, whose office helped to secure the bulk of the funds for the project, said during his remarks Wednesday that he was excited to see the project completed. “This is an important project because it sends a message to the entire state that Northampton is a leader in affordability,” he said.

Ash further remarked that he had a personal connection to projects like this, seeing as he himself was a “beneficiary” of affordable housing and grew up in affordable housing in the Boston neighborhood of Chelsea during his early years. “I know just how important affordability can be for individuals and families, as well as for the community,” Ash said.

After construction is completed, a marketing campaign will be used to alert potential tenants some six months before the building is ready for occupancy, Campbell said. After accepting applications, applicants will be reviewed and interviewed, and qualifying candidates will participate in a lottery.

Campbell said she expects the marketing campaign will begin sometime during the Spring of 2019.

The Valley CDC also plans to move its central offices from their current locations on Market Street to a location adjacent to the apartment complex on Holyoke Street.

The myriad contributions and financial support that went towards realizing the project include a grant of $100,000 from Smith College’s affordable housing fund. The City of Northampton, meanwhile, provided $500,000 in federal Community Development Block Grant funds and Community Preservation Act funds. TD Bank is contributing to the project by providing tax credit equity, construction and permanent financing.

http://www.masslive.com/news/index.ssf/2017/11/northampton_lumber_yard_afford.html

SourceMassLive.com