While years ago Boston’s neighborhoods of Dorchester and Roxbury may have grabbed headlines for the negative events that took place there, lately the news has been almost nothing but good. City officials and real estate agents alike say the positive time in the spotlight has been a long time in the making, and is resulting in a renewed interest in relocating to the once-unattractive boroughs.

“Boston is experiencing a renaissance,” said Tom Philbin, spokesman for the city’s Department of Neighborhood Development. “When people look to live in Boston, they still look at the traditional communities like the Back Bay and the South End, but with the crime rate dropping and everything else going on, neighborhoods like Dorchester and Roxbury are getting a second look by a lot of people.”

In recent weeks, Gov. Paul Cellucci announced the awarding of millions of dollars for renovation of Dorchester’s four dilapidated MBTA stations on the Red Line’s Ashmont branch. And while facing criticism that minority neighborhoods will still be underserved by using buses instead of light rail, MBTA officials formally broke ground on the new Silver Line that will connect areas like Dudley Square in Roxbury with South Station, the Seaport District and eventually Logan International Airport.

In terms of new housing, officials from both the city and Northeastern University recently cut the ribbon on Shawmut Estates in Roxbury, a 15-unit, $2.8 million affordable housing project, with a second phase and 60 new homes on the horizon.

In Dorchester, the Massachusetts Housing Finance Agency just announced it is providing financing for a housing project that makes use of a historic building that has been sitting vacant for about 15 years in the Upham’s Corner business district.

And as a testament to the national recognition the area is receiving, the Fannie Mae Foundation late last month included the Dudley Triangle area between Dorchester and Roxbury as one of only 10 neighborhoods in the country on the list of “Just Right” neighborhoods. Neighborhoods on that list are cited for affordable homeownership opportunities and as examples of how capital markets can be catalysts for neighborhood revitalization.

“People are realizing just how beautiful these neighborhoods are,” Philbin said. “Roxbury used to be one of the city’s wealthiest communities, which means a lot of the homes there have incredible architecture and sizeable back yards.”

Philbin cited the East Boston neighborhood of Eagle Hill as one area that was previously depressed but has since been revitalized. “People bought homes there and really brought out the beauty in them,” he said. “I think in terms of Roxbury and Dorchester, people are beginning to understand the potential these homes have, as well as the proximity to downtown [Boston].”

“There’s definitely more interest in the area,” said Desiree Steele, a Realtor with Realty Executives in West Roxbury who often works with homes in the neighborhoods. “There’s a great amount of activity and the homes are gaining in value, as well.”

Home sale statistics echo Steele’s observations.

There were 741 homes sold in Dorchester from January through July of 2000, a somewhat similar figure to the 781 homes sold during the same period in 1999, according to statistics provided by Warren Information Services, a sister company of Banker & Tradesman. The median home sale price, however, increased by more than $30,000 from $152,500 in 1999 to $185,000 in 2000.

In Roxbury, 404 homes were sold from January to July of 2000, up from 237 during the same months in 1999. The median sales price was also up, from $139,000 in 1999 to $264,500 this year.

“It’s been slowly building up,” Steele said of the new interest in the neighborhoods. “It seems like everywhere is hot in real estate now. Even the areas that haven’t been rehabbed, [buyers] can see the future and they are flocking to these neighborhoods.”

‘Huge Boost’
Steele said one reason the area has experienced such a resurgence is that many of the properties listed for sale are good candidates for many financing programs, bringing in a lot of first-time homebuyers who in turn fix up the property.

“There are wonderful programs available, and it’s helping to revitalize the areas. There are a lot of contractors out there doing a lot of rehab work right now,” she said.

The addition of new homeowners to the neighborhoods is complemented by a similar influx of office and retail space.

“The [Department of Public Health] will be moving 2,500 people down there when they open their offices [in Dudley Square], and the Roxbury Boys and Girls Club building is going to have Social Security as its anchor tenant,” Philbin reported.

In terms of retail, Stop & Shop recently announced it will open a supermarket in the Grove Hall Mall, which is nearing completion.

“This is the inner city at its core,” Philbin said. “Supermarkets were all leaving the inner city for a while. This will be a huge boost to the area.”

Also relatively new to the area is the Blue Hill Avenue Early Learning Center, which Philbin said was the city’s attempt to provide a good school to bring families with children back into the neighborhood.

As a testament to the popularity of the area, Steele said inventory of homes for sale in the neighborhoods is low, meaning that not only are homes for sale being sold quickly, but also fewer residents are choosing to put their homes on the market. “Nobody wants to move,” she said.

While the resurgence of the neighborhood is being lauded by many, there are concerns about possible displacement of longtime residents and gentrification.

“Although vigorous appreciation creates the opportunity for current owners to build wealth, it also puts severe pressure on low- and moderate-income renters as well as future homebuyers,” the Fannie Mae Foundation wrote about the “Just Right” neighborhoods.

“That’s a major concern, especially as we have this housing crisis going on everywhere,” Philbin said of the potential loss of affordability in those neighborhoods. He cited Mayor Thomas M. Menino’s work to increase linkage funds for affordable housing as one way the city is trying to combat the problem.

However, the greatest progress in that area, he said, has been the work of the Dudley Street Neighborhood Initiative, an organization which secured the support of local foundations to commission a neighborhood survey and develop a strategic plan with the goal of building market-rate and affordable housing.

According to Fannie Mae, the DSNI and its community land trust, Dudley Neighbors Inc., have coordinated the rehabilitation of more than 300 housing units by community development corporations and private developers, and constructed 225 new housing units.

Seventy-five of the new units are owner-occupied under the provisions of the trust, which has a 99-year lease requiring that units be sold and resold at prices affordable to the community residents based on prevailing local wages.

“Those units are going to remain affordable,” Philbin said. “The Dudley Neighbors were ahead of their time. It would be very expensive there now, but they’ve created a nice mixed neighborhood.”