Pathways Forward: Charting Solutions for Affordable Housing
Role of Community Development Financial Institutions (CDFIs) in Housing and Infrastructure
CDFIs play a crucial role in housing and community development by financing projects that conventional banks typically avoid due to high risks.
They provide funding for:
Pre-development costs (before projects are fully planned).
Construction financing, which is riskier than long-term financing.
Long-term financing relies on leveraging larger financial institutions, requiring collaboration between Wall Street, government policy, and non-profits.
Beyond housing, CDFIs invest in community assets like grocery stores, parks, and schools, ensuring holistic community development.
Massachusetts Housing Crisis and the Home Share Bill
Housing in Massachusetts is prohibitively expensive, with new units costing around $450,000 each.
The state needs 220,000 new units, a figure exceeding the state’s multi-year budget.
Home Share Bill: A proposed alternative solution that leverages existing housing stock:
Many older homeowners live in large, underutilized homes but struggle with maintenance.
Younger people and families struggle to find affordable housing.
Home sharing pairs older homeowners with renters, offering affordable housing without new construction.
Legal barriers exist, such as strong tenant protections, insurance liability issues, and zoning challenges.
Potential Impact: If 10% of the state’s 500,000 empty bedrooms were utilized, it could create 50,000 housing units, reducing pressure on rents and construction costs.
Boston City Council’s Role in Housing Policy
Boston has one of the most expensive housing markets, forcing families, young professionals, and seniors out of the city.
The Boston City Council serves as a check on the mayor’s administration, ensuring that progressive and sustainable housing policies are implemented.
Key housing initiatives:
Mixed-Income Social Housing
Goal: Modernize outdated public housing, integrating market-rate and affordable housing in the same communities.
Mixed-income developments reduce stigma around public housing and foster social mobility.
New $110 million investment fund will help revitalize stalled housing projects.
Housing Accelerator Fund
Designed to stimulate housing construction and reduce project delays.
Supports public-private partnerships for faster, more efficient housing development.
Challenges in Massachusetts Housing Supply
Massachusetts has underbuilt housing for decades, despite strong economic growth and job creation.
Local control over zoning allows municipalities to block new developments, creating severe housing shortages.
Zoning restrictions prevent multifamily housing, limiting growth in suburban and transit-accessible areas.
State policy interventions:
MBTA Communities Act: Requires 177 cities and towns near public transit to zone for multifamily housing (15 units/acre minimum).
Accessory Dwelling Units (ADUs): Legalized in most cities to increase density without large-scale development.
Expanding Housing Options Without New Construction
Office-to-Residential Conversion:
As office spaces remain vacant post-pandemic, converting them to housing could provide affordable urban living options.
Challenges:
Many offices lack windows and proper ventilation, making residential conversions difficult.
Zoning and building codes may restrict conversions.
Potential Solutions:
Shared living models (e.g., co-living spaces with communal kitchens).
Replicating past models, such as boarding houses and residential hotels.
Single Staircase Buildings (Up to 6 Stories)
Current U.S. building codes require multiple staircases, limiting mid-rise housing development.
Many European and Asian cities allow six-story buildings with a single staircase, increasing housing density.
A proposed Massachusetts bill would reform state building codes, potentially unlocking hundreds of thousands of new housing units.
Affordable Housing and Institutional Responsibility
Harvard’s Expansion and Its Impact on Housing:
Harvard owns significant real estate in Boston and Cambridge, driving housing costs up.
The city lacks a mechanism to enforce financial contributions from tax-exempt institutions like universities.
The Pilot Program allows universities and hospitals to voluntarily contribute to city funds, but compliance is low.
Ensuring Affordable Housing in Expansion Areas:
Residents fear that Harvard’s expansion in Allston may displace locals.
The city lacks concrete plans to include affordable housing in Harvard’s expansion projects.
Renter Protections and Eviction Prevention
Massachusetts lacks consensus on rent control due to conflicting interests among developers, landlords, and tenant advocates.
Active policies for tenant protection:
Right to Counsel for Evictions: Ensures low-income tenants receive legal representation.
Eviction Record Sealing: Prevents past evictions from permanently affecting tenants’ housing prospects.
Eliminating Broker Fees for Tenants: Transfers the cost of broker fees to landlords, discouraging frequent evictions.
Housing Solutions for the Aging Population
“Silver Tsunami” and Senior Housing Crisis:
Single women over 70 are the fastest-growing demographic entering homelessness.
Many seniors live in large, underutilized homes, which could be repurposed for shared housing.
Massachusetts needs more age-appropriate housing, such as:
ADUs for aging in place.
Congregate senior housing with shared services.
Successful senior housing models (e.g., 2Life Communities) show that affordable senior housing can improve longevity.
Zoning Reform and Lessons from Other Cities
Austin, TX: Reduced rent through aggressive zoning reform, allowing denser housing and lower parking minimums.
Boston’s zoning system is outdated, with more zoning districts than larger cities, making development difficult.
Cambridge’s 6-Story Zoning Initiative:
Allows six-story buildings by right across all neighborhoods.
Encourages affordable and mixed-income housing without exclusionary zoning.
Expected to increase housing supply without costly rezonings.
Key Takeaways
Housing Costs Are Unsustainable:
Massachusetts underbuilt housing for decades, leading to severe shortages.
New units cost $450,000+ each, making large-scale affordability difficult.
Expanding Housing Without Construction:
Home Sharing Bill: Uses existing homes to increase housing supply.
Office-to-Residential Conversions: Reduces vacancy rates and creates affordable urban housing.
Zoning Reforms Are Essential:
MBTA Communities Act and ADU legalization are first steps.
Cambridge’s six-story zoning initiative sets a model for equitable density.
Senior Housing Crisis Requires Immediate Action:
Aging populations are struggling with housing insecurity.
Solutions include ADUs, congregate housing, and shared living models.
Mixed-Income and Social Housing Models Are Promising:
Public housing should integrate market-rate units to create sustainable, diverse communities.
Boston’s Housing Accelerator Fund will finance stalled developments.
Tenant Protections Need Strengthening:
Expanding Right to Counsel, eviction sealing, and rental assistance are key eviction prevention tools.
Universities and Large Institutions Must Contribute:
Harvard and other tax-exempt institutions own substantial real estate but contribute little to the city’s housing solutions.
Conclusion
The discussion highlighted the complexity of the housing crisis and the need for innovative, multi-sector solutions. Statewide zoning reform, financing mechanisms, tenant protections, and alternative housing models will be crucial in addressing Massachusetts’ housing affordability and availability challenges.
Disclaimer: This summary is AI-generated based on a recording of the event. While it strives to accurately capture the key points and discussions, there may be minor inaccuracies or omissions. Please refer to official event transcripts or recordings for precise details.