Kenan Bigby

Looking ahead to 2018, it is clear that the need for affordable and workforce housing in the commonwealth of Massachusetts will continue to grow. Despite falling unemployment rates and a surging stock market, wages are not keeping pace with rising housing costs.

Additionally, outdated and restrictive zoning laws in many communities make it difficult to cost effectively build enough housing to make a dent in this supply shortfall. Adding to these existing challenges, the proposed tax reform legislation making its way through Congress has the potential to weaken many of the tools that currently exist to aid the production of affordable and workforce housing.

Thankfully, the proposed tax reform legislation does preserve the low-income housing tax credit, which has been an effective source of equity for affordable housing developments throughout the country. However, the contemplated reduction to the corporate tax rate will depress the value of these credits leading to less equity being available to fund the construction and preservation of sorely needed housing units. Other tools that were eliminated in earlier versions of the legislation, such as historic tax credits and tax-exempt private activity bonds, appear to be restored in the most recent drafts. Loss of these resources, especially private activity bonds – which are responsible for nearly 50 percent of the affordable housing produced in the US – would be devastating. Thanks to the tireless efforts of education and advocacy by affordable housing professionals, community development groups and others, it appears that these tools will continue to be available for the creation of affordable and workforce housing, even if there are some tweaks to the programs that may reduce their efficacy.

For our part, Trinity Financial will continue to look for creative solutions to the problem of creating housing that is responsive to the needs of the communities in which we work. For instance, that could entail the adaptive reuse of historic buildings like our redevelopment of the Van Brodie Mill in Lawrence and the Worcester County Courthouse in Worcester into vibrant residential communities serving a mix of incomes. It could also include our focus on identifying transit-oriented development sites capable of supporting higher density mixed-income, mixed-use developments like our Treadmark project on the MBTA Red Line in Dorchester, or our deployment of tax-exempt bond financing in partnership with the Boston Housing Authority for the redevelopment of obsolete public housing at Orient Heights in East Boston. Trinity remains committed to finding solutions to the challenges of providing housing options for low- and middle-income residents of the commonwealth.

We are encouraged to see that local leaders are already stepping up to be part of the solution to this challenging puzzle as well. Gov. Charlie Baker announced a new initiative, Act to Promote Housing Choices, which is a thoughtful policy package providing direct grants, technical assistance and zoning reform legislation that municipalities can utilize to create mixed-income housing developments that work for their communities. At Trinity, we believe that cities and neighborhoods are enhanced when they reflect a diverse mix of people, businesses and transportation options. We try very hard to make sure that our developments reflect this philosophy in a way that strengthens the surrounding community.

Despite the challenges that lie ahead, we are excited about the opportunity to continue our work in 2018. Partnering with forward thinking municipalities, engaged community members and public and private financing partners, we look forward to discovering the next set of creative solutions for creating affordable and workforce housing throughout the commonwealth.

Kenan Bigby is a managing director at Boston-based Trinity Financial.