New Affordable Housing Funding Announced

While the exact amount of CPA funding for housing will be determined by the Community Preservation Committee (CPC), total awards from all sources in this funding round will likely exceed $25 million, making it one of the largest affordable housing funding rounds in City of Boston history.

“Addressing rising housing costs is critical for preserving the diversity and character that makes Boston a place where all residents can thrive,” said Mayor Walsh. “Voters in Boston made their support for affordable housing creation clear when they passed the Community Preservation Act in 2016. My administration has put affordability at the top of our agenda, establishing a comprehensive plan, and committing more than $115 million to housing. With these new funds in this funding round, we will further accelerate our work to lift up every neighborhood and provide all residents and their families with accessible and affordable housing options.”

Based on the goals outlined in Mayor Walsh’s housing strategy Housing A Changing City: Boston 2030 and the Imagine Boston 2030 Planning Process, the City of Boston has established priority criteria which proposals must meet, including:

• Affordable housing developments targeting a mix of incomes: from units for homeless households to units targeted and restricted to incomes representative of Boston’s workforce;
• Affordable housing developments that serve the disabled community, vulnerable or special needs populations, older Bostonians, veterans, artists, and/or aging out youth;
• Acquisition of unrestricted housing developments in order to stabilize residents’ tenancies, and provide long term affordability for a mix of incomes; or
• Affordable housing developments that utilize City-owned land;
• Affordable housing developments that have reduced the cost to build and use public funding most efficiently;
• Developments that are at risk of losing their affordability within five years.
• Projects creating new affordable units in high-cost neighborhoods where most of the IDP and NHT funds are generated.

Funds will be awarded from three sources: the first, of approximately $8 million, consists of funds administered by the Department of Neighborhood Development, including funds from the Federal HOME Investment Partnerships and Community Development Block Grant programs, the City’s Housing Boston 2030 Fund, and the Inclusionary Development Policy Fund. Up to $3 million of this funding is earmarked to support housing that serves households 55 years or older. The second source utilizes funds from the Neighborhood Housing Trust (NHT). NHT disburses funds collected through the City’s Linkage policy, which extracts affordable housing funds from developers of large commercial projects. The third source is CPA funds, which are collected through the one percent property tax surcharge approved by Boston voters in 2016 to help strengthen Boston neighborhoods through strategic investment in affordable housing, historic preservation, and open space. The addition of CPA funds to this funding package aligns the City’s housing resources towards full implementation of Housing a Changing City: Boston 2030 plan. Applications are currently available for the next round of CPA funds.