Baker-Polito Administration Advances Production and Preservation of 1,500 Housing Units Across Commonwealth

Statement

Today, Governor Charlie Baker announced the 2019 Affordable Rental Housing Awards. Today's awards will support the preservation and production of 1,581 rental units, including 1,349 affordable units. This includes 273 units that will be reserved for extremely low-income households.

Today's awards will advance three transit-oriented projects, five projects for seniors, and two projects that will significantly rehabilitate public housing. Affordable rental housing awards have led to the production, renovation and preservation of more than 7,800 housing units, representing nearly half of all the housing units supported by the Baker-Polito Administration since 2015 though funding mechanisms like the MassWorks Infrastructure Awards Program, the Housing Development Incentive Program and more.

"We are pleased to announce these Affordable Rental Housing Awards to advance the production and preservation of more than 1,500 rental housing units throughout the state," said Governor Charlie Baker. "Our administration has already invested more than $1 billion in affordable housing and we look forward to working with our colleagues in the Legislature to pass our Housing Choice bill to facilitate the production of more new housing units in communities across Massachusetts."

"Each housing unit advanced today will benefit entire communities, by bringing more people to downtowns, transforming long-vacant properties, and providing new customers for local businesses," said Lt. Governor Karyn Polito. "Housing is both a valuable tool and critical precursor for economic development, and these projects will provide stability to many households in need. Congratulations to all of today's awardees."

The Department of Housing and Community Development is awarding nearly $80 million in direct subsidies from seven state bond accounts and federal HOME funds, and allocating $38 million in state and federal Low Income Housing Tax Credits (LIHTC) to 28 projects. The tax credit allocations will generate more than $260 million in equity to support these projects. Massachusetts is one of just 17 states to offer a state tax-credit program to complement the federal LIHTC program to support the development and rehabilitation of affordable housing.

"The housing crisis in Massachusetts has far reaching effects on our Commonwealth, and is a major obstacle to long-term growth," said Housing and Economic Development Secretary Mike Kennealy. "Our workforce and low-income households need more housing options that connect them to employment opportunities, transportation and amenities. Our administration is proud to support today's projects, which will further diversify our housing portfolio and help more families access stable housing."

"Housing that meets the needs of residents is the foundation for thriving communities, supporting strong neighborhoods and vibrant downtowns," Housing and Community Development Undersecretary Janelle Chan. "Today's awards enable the creation of housing for low-income families, seniors, and individuals, including those transitioning out of homelessness. These high-impact projects will bring new residents to Fitchburg, Gloucester, and Methuen's downtown districts, redevelop vacant school properties in Southbridge, Swampscott and Taunton, and leverage town-owned land in Williamstown. This is just a sample of the amazing developments we are supporting, all of which will benefit thousands of residents upon their completion."

Governor Baker joined Housing and Economic Development Secretary Mike Kennealy, Housing and Community Development Undersecretary Janelle Chan and local leaders to announce the awards in Swampscott, near the site of the future Senior Residence at the Machon, which received funding today. The project will redevelop a vacant elementary school into 38 affordable rental units for seniors, with eight units reserved for extremely low-income seniors. The developer, B'Nai B'rith, will also provide long-term services at the site to support residents. DHCD is supporting the project with a federal LIHTC allocation and direct subsidy funding.

"A few years back the Town of Swampscott took an important step in making the former Machon Elementary School available for affordable housing. Together with a strong partner in B'nai B'rith Housing and the required financial support from the Baker Administration, 38 units of very affordable senior housing are becoming a reality in Swampscott," said Peter Spellios, Chair of the Swampscott Select Board. "The need for affordable housing in every community is real. By supporting the Senior Residences at Machon in his hometown of Swampscott, Governor Baker is setting an important example for all communities. We are grateful for his leadership and support."

"We are so grateful for the State's support and for our partnership with the Town of Swampscott to bring much-needed affordable housing to seniors and older adults in Swampscott," said Susan Gittelman, Executive Director B'nai B'rith Housing. "Seniors and older adults are a fast growing demographic, and we believe this community development will help fill the need for affordable housing in Massachusetts."

"With the current high demand for housing, unlocking the potential of developments like this is of paramount importance," said Senator Brendan Crighton. "This project perfectly combines the need for senior housing with an unutilized building ripe for redevelopment and reuse."

"This project is an excellent use of the Old Machon School building, supporting seniors who increasingly cannot afford Massachusetts' skyrocketing housing costs," said Representative Lori Ehrlich. "I am grateful to the administration for including this project in its award round, and I look forward to continuing to work with my colleagues and the administration to reduce housing costs on the North Shore and increase the supply of housing options."

Today's awards further the Baker-Polito Administration's efforts to increase significant housing production across the Commonwealth, including affordable and market-rate housing. Since 2015, the administration has injected more than $1 billion in affordable housing, resulting the production and preservation of more than 17,000 housing units, including 15,000 affordable units. In 2018, Governor Baker signed the largest housing bond bill in Massachusetts history, committing more than $1.8 billion to the future of affordable housing production and preservation. The Baker-Polito Administration has also advanced the development of more than 11,000 mixed-income housing units through the successful MassWorks Infrastructure Program, reformed the Housing Development Incentive Program, and worked with communities to implement smart-growth development and planning efforts.

In February 2019, Governor Baker refiled the Housing Choice legislation to deliver necessary, targeted zoning reform to benefit communities pursuing new housing production and support the administration's goal of producing 135,000 new housing units by 2025. In May, Governor Baker, Lt. Governor Polito, and Housing and Economic Development Secretary Mike Kennealy testified in support of the legislation in front of the Joint Committee on Housing.

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