Tag: Homeowners Rehab

Baker-Polito Administration Announces $1.73 Million to Support Energy Efficient Affordable Housing

The Baker-Polito Administration today announced $1.73 million in awards to support energy efficient new construction for affordable housing developments in six cities and towns built to Passive House standards. The grants, awarded to eight affordable housing developments in Cambridge, Gloucester, Hanson, Northampton, Holbrook and Boston totaling 540 high-efficiency units, provide energy savings and improved indoor air quality for low-income households. The announcement was made by state and local officials at the Old Colony Housing Development in South Boston.

“Massachusetts is proud to lead the nation in energy efficiency, which helps to reduce energy use and cut greenhouse gas emissions which in turn promotes cost savings for residents and businesses,” said Governor Charlie Baker. “Our administration is committed to supporting the development of additional affordable housing, and by embracing innovative design to maximize efficiency we can provide quality housing solutions for residents while reducing carbon emissions.”

“Our Administration is committed to helping Massachusetts’ low-income households reduce energy costs while creating better, more affordable housing options,” said Lieutenant Governor Karyn Polito. “Passive House standards offer one of the best options to promote high efficiency housing solutions for families, and better position the Commonwealth to extend energy efficiency benefits of the homes to families in cities and towns across the state.”

The funding was awarded through the Massachusetts Clean Energy Center’s Passive House Design Challenge program, part of the Baker-Polito Administration’s $15 million Affordable Access for Clean and Efficient Energy (AACEE) initiative. The program seeks to demonstrate that multi-family affordable housing can be built to high efficiency Passive House standards in Massachusetts at a low-to-no cost premium.

Passive House is a green building certification that ensures extremely high levels of energy efficiency and the provision of fresh air for ventilation.  Multi-family buildings built to the Passive House standard generally use 40% less total energy than energy stretch code-compliant buildings.   The annual energy use of 8-12 Passive House multi-family apartments is roughly equivalent to the average existing single-family suburban home in Massachusetts.  The Passive House energy efficiency standard ensures new buildings are built with high levels of insulation and air tightness, generous provision of fresh air with heat recovery for ventilation, and better windows than would normally be required.

Earlier this year, Massachusetts was named the most energy efficient state in the nation by the American Council for an Energy-Efficient Economy for the ninth consecutive year.

“Building to energy-efficient Passive House standards is the first step in ensuring buildings are on a path to becoming net-zero,” said Energy and Environmental Affairs Kathleen Theoharides. “To meet Massachusetts’ 2050 greenhouse gas reduction goals, energy efficiency is new construction must continue to be promoted,  and it is great to see affordable housing leading the way for the Commonwealth.”

“Passive House buildings are more efficient, durable, healthy, and resilient than typical buildings,” said MassCEC CEO Stephen Pike. “Through these projects, the Commonwealth is supporting better housing for low-income families and reducing greenhouse gas emissions in our most vulnerable neighborhoods.”

“The Passive House Design Challenge program is one of the many innovative ideas in the Commonwealth that contributes to moving us forward in achieving our shared clean energy and emission reduction goals,” said Department of Energy Resources Commissioner Judith Judson. “This program coupled with our new Mass Save incentives for Passive House go a long way towards enabling deep energy efficiency.”

“As we work to build more affordable housing throughout the state to meet our current crisis, it is vital we build high-quality, future-proofed housing that takes current and future energy needs into account,” said Housing and Community Development Undersecretary Janelle Chan. “Today’s awards will advance eight affordable housing developments, which will provide more than 500 units for low and middle-income households. We are thrilled to be supporting housing development that is safe and affordable for families, and is built to Passive House standards, reducing carbon emissions and lowering households’ energy costs.”

The eight developments, four of which have secured low income tax credit financing and three which are applying to the Department of Housing and Community Development (DHCD) for affordable housing tax credits, are:

  • Homeowner’s Rehab Finch Cambridge – Cambridge ($147,000) – A new 98-unit affordable housing project designed for resiliency to allow for potential flooding and low energy consumption using efficient heat pump heating and cooling technology.  Shading features are included to lower cooling demands.  The building will also include a 100 KW Solar Photovoltaic array to generate electricity for heating and cooling.
  • Preservation for Affordable Housing Mattapan Station – Mattapan ($540,000) – An urban-centric housing complex with 135 apartments designed to promote the Neponset River Greenway and bike paths, while reducing energy consumption.  The building will use efficient electric heat pump technology for heating and cooling and is exploring innovative heat pump technology to heat hot water.
  • Beacon Communities Old Colony Phase Three C – South Boston ($120,000) – As part of the third phase of the redevelopment of Old Colony, the project provides affordable housing for vulnerable seniors at extremely low energy use and 55 new apartments.  The building will feature much less drafty apartments with at least four times lower air infiltration rates than would be required by code, high levels of ventilation with heat recovery equipment, and attention to creating thermal breaks in the walls and roof to improve energy performance.
  • NorthShore Community Development Corporation’s Harbor Village – Gloucester ($120,000) – A 30-unit affordable housing construction will include retail spaces, bike storage, and gallery space as well as being in the heart of downtown Gloucester and will feature efficient heat pumps for heating and cooling.
  • Dakota Partners – Hanson ($192,000) – A new construction housing project for families. When completed, Depot Village, located near an MBTA commuter rail stop, will create 48 new rental units.  The building will utilize balanced ventilation with heat recovery, heat pumps for heating and cooling, and reduced heat loss. The project is creating a template for Dakota Partners to use on future developments that will be designed for Passive House construction and certification.
  • Community Builders North Commons – Northampton ($212,000) – The project will increase insulation levels, air sealing, and ventilation levels to meet Passive House Standards for 53 apartments. It will provide mixed‐income, new construction family rental housing development on the Village Hill campus in Northampton, Massachusetts and will include both affordable and workforce housing units, serving households with a broad range of incomes.
  • Preservation of Affordable Housing Bartlett Station Lot D – Roxbury ($168,000) – Bartlett Station Lot D includes the construction of 52 senior housing units. Lot D is a part of the master planned Bartlett Station, an 8.6-acre former MBTA bus yard.  The building will include shading features, higher levels of air sealing, balanced ventilation with heat recovery, and a central efficient heat pump systems for heating and cooling.
  • NeighborWorks Southern Mass’s Holbrook Center Senior Housing – Holbrook ($131,200) – A 100% affordable rental housing will cater to seniors aged 65 and over with one-bedroom apartments and common amenities such as a library and fitness center, this housing development will provide support services that aim to accommodate residents’ changing needs as they age. The design will offer seniors more comfort, make for quieter apartments, and less noise from the street and adjacent apartments.

The Passive House Design Challenge awards are complemented by the recent addition of MassSave Passive House incentives for multi-family buildings.  Multi-family new construction buildings above four stories, both market rate and affordable, may be eligible for Passive House energy modeling funding and up to $3,000 per unit if they certify to the high-efficiency Passive House standard.

“I applaud the Baker-Polito Administration for their continued work in addressing barriers for low- and moderate-income residents in Massachusetts to access cost-saving, clean energy technologies, including awarding grants for MassCEC’s Passive House Design Challenge program,” said State Representative Thomas A. Golden, Jr. (D-Lowell), Chairman of the Joint Committee on Telecommunications, Utilities, and Energy.  “This program has the exciting goal of seeking to demonstrate that Passive House construction can not only provide significant bill savings, air quality improvements, and energy efficiency gains for affordable housing projects, but also that it can be built at a low-to-no-cost premium.”

“We are very encouraged by the grants being awarded by the Massachusetts Clean Energy Center today,” said State Representative Kevin Honan (D-Boston), Chairman of the Joint Committee on Housing. “Massachusetts has been, and will continue to be, a national leader in energy efficiency policies, and these eight new developments built to Passive House standards are an excellent addition to our affordable housing stock. As we continue to focus on housing production issues at the state level, these are the kind of projects and investments we hope to see more of.”

“These state grants will support energy efficient construction projects at affordable housing developments across the Commonwealth, helping low-income households save on energy costs while improving air quality in their homes,” said State Representative David Biele (D-Boston).  “I’m proud that the Anne Lynch Homes at Old Colony received a grant to build high-efficiency units, and I thank the Baker-Polito Administration and MassCEC for making these important energy efficiency investments in affordable housing.”

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. Legislation filed by Governor Baker in February, An Act to Promote Housing Choices, calls for targeted zoning reform to advance new housing production in Massachusetts and support the Administration’s goal to produce 135,000 new housing units by 2025. The Baker-Polito Administration has also advanced the development of more than 11,000 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.

SourceMassachusetts Clean Energy Center

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

Preserving affordable housing: Cambridge, Harvard, and HRI partner on affordable units in Harvard Sq

Wednesday, January 4, 2012
Preserving affordable housing
Cambridge, Harvard, and HRI partner on affordable units in Harvard Square
By Lauren Marshall, Harvard Staff Writer

Twenty-five affordable apartments in Harvard Square’s Craigie Arms Apartments will remain affordable for at least 50 additional years after the city of Cambridge, Harvard University, and the nonprofit Homeowners Rehab Inc. (HRI) put together a creative plan to preserve the affordability of these units through HRI’s purchase of the 50-unit Craigie Arms building.
Affordability restrictions on the 25 affordable units were scheduled to expire in 2016. With the property for sale, these units were an attractive investment to buyers interested in reaping the financial benefits of converting these units to market-rate housing after the existing restrictions expired.
Working together, the city, Harvard, and HRI were able to orchestrate HRI’s purchase of the building to ensure affordability of the 25 units for a minimum of 50 years. Specifically, Harvard amended and extended its ground lease on the property in a manner that allowed HRI to secure the necessary financing from the Cambridge Affordable Housing Trust and the Community Economic Development Assistance Corporation (CEDAC). HRI purchased the building in a preservation transaction that was finalized on Dec. 19.
“We are celebrating today because a creative partnership has allowed us to preserve an important housing resource in Harvard Square which will benefit current and future tenants of these units. This is a huge win in today’s Harvard Square housing market, where maintaining affordability is very difficult,” said Cambridge City Manager Robert W. Healy, who is also the managing trustee of the Cambridge Affordable Housing Trust and has worked to strengthen affordable housing during his 30-year tenure with the city.
“Preserving Craigie Arms was a priority for the city and could not have happened without the commitment of Harvard and is just the latest example of Harvard partnering with the city to achieve shared community goals,” added Assistant City Manager for Community Development Brian Murphy.
Craigie Arms was owned by a multipartner entity that was led by Bob Kuehn, an affordable-housing developer. Following Kuehn’s death, ownership of the property was left to 30 different investors who recently offered the property for sale. HRI was designated by the Massachusetts Department of Housing and Community Development under the recently enacted expiring use preservation statute, known as Chapter 40T, which gives public agencies and affordable housing providers the time necessary to put together plans to preserve affordable housing before it can be sold to market buyers. With this time, the city, Harvard, and HRI put together the plan to preserve these units, and, after a competitive bidding process, the owners elected to sell property to HRI.
“All of this would not be possible without the city of Cambridge’s partnership and Harvard’s involvement,” said Peter Daly of HRI. “By working together we have preserved the homes of 25 individuals and families of low and moderate incomes at Craigie Arms.”
The city and Harvard have a long history of supporting affordable housing and a record of success in preserving and maintaining housing of all types for people of all incomes. An example of this success includes Harvard’s 20/20/2000 program, a $20 million, 20-year low-interest revolving loan program that has helped build and renovate 465 units in Cambridge. Harvard also created affordable units for working families during the development of housing for students in Riverside, and has sold more than 100 housing units at reduced prices to the city of Cambridge for use as affordable housing. In all, Harvard has helped to create and preserve over 600 units of affordable housing in Cambridge in recent years.
“Creating and maintaining affordable housing units can support the economic well-being and diversity of the communities around us. The support of affordable housing in Cambridge has been a long-term public policy goal for the city of Cambridge, and we’re pleased to be a partner with the city on this and other efforts to achieve that goal,” said Christine Heenan, vice president of Harvard Public Affairs and Communications.

© 2012 The President and Fellows of Harvard College
URL: http://news.harvard.edu/gazette/story/2012/01/preserving-affordable-housing/

SourceHarvard Gazette