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Aaron Gornstein
President and CEO, Preservation of Affordable Housing
Age: 62
Industry experience: 37 years
As its name suggests, Preservation of Affordable Housing is focused on acquisition and long-term ownership of income-restricted properties. The Boston-based nonprofit owns and manages approximately 13,000 affordable apartments in 11 states and Washington D.C., while pursuing development opportunities in Greater Boston. CEO Aaron Gornstein has been active in Greater Boston’s housing sector since the 1980s, starting his career at a Malden anti-poverty agency and assuming a high-level role in state government as undersecretary for the Massachusetts Department of Housing and Community Development under former Gov. Deval Patrick.
Q: What are the hurdles facing POAH and other nonprofit developers in the current housing market?
A: When we see a risk of tenant displacement, we try to acquire the property quickly and renovate it, provide support services to the residents and keep it affordable long-term. We’ve complemented that with new construction and neighborhood redevelopment projects, so our pipeline includes a variety of housing development. Pricing on existing properties has risen sharply in recent years.
It’s difficult to compete with private investors that have newly entered the affordable housing market. This has had the effect of increasing competition and driving up prices. Often POAH, even as a high-capacity nonprofit with substantial capital, is unable to compete on price. My concern is that many of these properties will eventually be converted into mostly market-rate housing.
Q: How many new developments is POAH working on locally, and what are some of the notable aspects of the projects?
A: The Loop at Mattapan Station is complete and we are planning a ribbon-cutting in April. It has 135 apartments and is co-developed with Nuestra Comunidad. It’s a mixed-income development designed to Passive House standards. The Daily Table is locating in the ground-floor retail, bringing a new grocery store to the neighborhood.
The former Whittier Street public housing is now called Flat 9 at Whittier. We’re redeveloping the entire site as the designated developer by the Boston Housing Authority, and Madison Park Community Development Corp. is the local nonprofit co-developer and is building much of the off-site housing. The latest phase is 172 apartments.
The Kenzi at Bartlett Station will be completed in the fall and is going to be a 50-unit senior housing development. Most notably, it will be our first all-electric property. We’ve been working closely with the local CDC’s in Boston for quite some time, and we bring additional capacity as a larger nonprofit organization with more access to capital and more staff.
Q: What are your thoughts on Boston Mayor Mchelle Wu’s rent stabilization proposal and other housing initiatives?
A: I’m very encouraged. The mayor’s shown outstanding leadership on affordable housing and is committing additional resources, but also has focused on expediting the approval process. I’m also hopeful that there will new proposals for multifamily zoning, which will also speed up the process while still providing neighborhood input.
Q: What can Gov. Maura Healey’s proposed creation of a state housing secretariat do to address the affordability crisis?
A: This will elevate the importance of housing, as the new secretary will be at the cabinet table. This will bring greater focus, resources and coordination to affordable housing and community development initiatives. The governor has publicly called for the expansion of affordable housing production and preservation and strong implementation of the MBTA Communities zoning law to create more multifamily zoning. Her budget includes an expansion of the state rental assistance programs and ensures that there is a strong safety net for homeless families. She has filed a mini-housing bond bill to ensure that key housing production programs are able to continue until a more comprehensive bond bill is filed later this year.
