The city of Boston announced today it has allocated $7.5 million of Inclusionary Development funds to acquire occupied rental housing.

Through the new Acquisition Opportunity Program, the Department of Neighborhood Development will provide subordinate loans to help responsible investor-owners acquire occupied multifamily rental properties. Property owners will be required to maintain the tenancies of residents in good standing and will be required to maintain affordable rent levels for the units for a minimum of 50 years.

The program is designed to increase the share of Boston’s rental housing stock that is protected from market forces and to prevent displacement of tenants due to gentrification.

To participate in the program, a developer or owner must agree that a minimum of 40 percent of the units will be restricted for low- and moderate-income families. Funding preference will be given to developments that have either a higher number of restricted units or have units restricted to lower incomes.

Development teams will prequalify for the program by demonstrating they have the experience, financial capacity and management experience. Through a competitive RFP process, development teams will be selected and will receive certification from the city for the requested amount of their loan. Once prequalified, teams can begin looking for properties. When a property is identified, the prospective buyer can then make an offer, confirm that offer with the city and close on the sale efficiently.