Gov. Deval Patrick has signed a law to keep publicly-assisted rental properties affordable, and announced a $150 million loan fund to support and secure long-term affordable housing preservation efforts.
"Preserving affordable rental housing keeps our working families strong and our economy strong. By securing and expanding housing opportunities now and over the long-term, we can make a difference in the lives of our neighbors, bolster our communities and maintain Massachusetts on a path toward recovery," Patrick said.
"By maximizing all available resources, we are working to meet today’s economic challenges head-on by building and preserving affordable housing opportunities for families of all income levels," said Lt. Gov. Timothy Murray, chair of the state’s Interagency Council on Housing and Homelessness.
By signing the "expiring use" bill, the governor created a regulatory framework to preserve affordable rents in properties where long-term, publicly subsidized mortgages are paid off and affordability restrictions can then expire.
An estimated 90,000 units could be affected, with about 17,000 of those units at-risk of losing their affordability through expiring use over the next three years. The legislation establishes notification provisions for tenants within expiring use properties, a right of first refusal for the state Department of Housing and Community Development (DHCD) or its designee to purchase publicly assisted housing and modest tenant protections for projects with affordability restrictions that terminate, according to a statement.
"Working together with tenants, property owners, preservation experts, and municipalities, the state now has a proactive, comprehensive strategy to permanently preserve more of the Commonwealth’s affordable rental housing stock," said Sen. Sue Tucker, D-Andover. "It is critical, particularly in this economy, that we maintain housing options that are affordable to low income families, seniors, and people with disabilities. Preserving affordable housing is much less expensive than building it new."
The governor also announced a $150 million preservation loan fund created by the state quasi-public Community Economic Assistance Corp. (CEDAC), in partnership with DHCD. The program is leveraged through state bond funds along with a $3.5 million award to the state from the John D. and Catherine T. MacArthur Foundation, $40 million from private lenders, and $100 million from the Massachusetts Housing Investment Corp. (MHIC).
"Enacting this legislation and loan fund helps us to preserve the vibrancy, vitality and rich diversity offered to residents in our cities and towns across the Commonwealth," said DHCD Undersecretary Tina Brooks. "We are grateful for the ongoing support of the Patrick-Murray Administration and the Legislature as well as our partnership with CEDAC for helping us to leverage the public and private resources needed to secure this important preservation loan fund."
