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Here’s why local hospitals and organizations are partnering with Boston to buy apartment buildings
In its first five years, the fund plans to support the acquisition of 500 homes, preventing the displacement of over 1,500 Boston residents.
A new affordable housing acquisition program announced Thursday aims to combat displacement in Boston through a public-private funding model.
The Boston Acquisition Fund (BAF), a program aimed at tackling Boston’s housing affordability crisis, is a public-private revolving loan fund “designed to support mission-driven developers in purchasing occupied multi-family housing in the city,” according to a statement from the Mayor’s Office.
“The purpose is to protect residents from displacement and stabilize communities affected by rising rents and speculative investment pressures, creating housing stability,” the statement said.
How does it work?
The BAF will provide low-interest loans to developers to support their acquisition of buildings that are up for sale, the office said. The city, Boston institutions, and philanthropic organizations are contributing to the fund.
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The program’s revolving loan structure ensures that repaid funds are reinvested into future projects in an effort to preserve more affordable housing units in Boston.
In its first five years, the fund plans to support the acquisition of 500 homes, preventing the displacement of over 1,500 Boston residents, according to city officials.
The BAF builds on the city’s Acquisition Opportunity Program, the office said, which has already preserved over 1,000 affordable units and provided over $90 million in funding.
Through the initial program, launched in 2016, organizations received financial and technical assistance to acquire occupied rental properties that are renting at below-market rates. These properties, authorities say, are often at risk of being sold or have the potential to face rent increases.
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The goal of the new program, the office says, is to keep the properties affordable and to promote neighborhood stability.
“As Boston faces unprecedented housing challenges, the Boston Acquisition Fund will help us safeguard affordable homes and keep residents rooted in their communities,” Mayor Michelle Wu said in a statement. “This innovative solution prioritizes equity, ensuring that residents — especially communities of color — are not pushed out by rising costs or outside investors.”
What organizations are involved?
The BAF, which has already secured $13 million, is committed to raising $25 million to support the new program.
Boston has contributed $5 million in grant funding, and an additional $8 million has been committed by organizations including Barr Foundation, The Boston Foundation, Massachusetts Housing Investment Corporation (MHIC), and Eastern Bank Foundation.
Local hospitals and medical facilities — Mass General Brigham, Boston Children’s Hospital, Dana-Farber Cancer Institute, Boston Medical Center, Beth Israel Deaconess Medical Center, and Tufts Medicine — have also contributed funding.
Access to affordable housing, officials say, is imperative to promoting good health.
“Stable, affordable housing is essential for good health, as poor housing conditions are closely linked to chronic issues such as cardiovascular disease, asthma, and long-term stress,” Elsie Taveras, Chief Community Health & Health Equity Officer at Mass General Brigham, said in a statement. “Unfortunately, the housing crisis disproportionately impacts communities of color.”
Who is it for?
The BAF aims to stabilize housing for “at-risk individuals and families,” the statement said.
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The fund will permanently remove naturally occurring affordable housing from the speculative market to “promote the growth of new, local, and diverse development teams,” city officials said.
MHIC, which is overseeing the fund’s administration, will assist developers who might otherwise have issues accessing credit.
MHIC finances affordable housing, with a focus on low-income neighborhoods and communities of color.
“These investments will directly help those who reside in these properties as well as the surrounding community, ensuring that they can thrive,” Moddie Turay, MHIC’s President and CEO, said in a statement. “We look forward to engaging Fund stakeholders and growing this program to serve as a model for affordable housing preservation.”
For more information or to participate, visit the MHIC’s Boston Acquisition Fund page.
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