Passed on August 6, 2024, the Affordable Housing Act designates over $5 billion for housing initiatives benefitting Massachusetts’ most vulnerable populations. This includes housing for individuals with disabilities, senior citizens, and first-time homebuyers, to name a few.
It’s important to note that building new housing and revitalizing existing housing could provide significant impacts beyond mitigating the current housing and shelter crisis. Research shows that there are notable benefits to providing affordable housing including economic growth and improved health outcomes. While we shouldn’t overlook this success at the state level – the reality is that on the Federal level, housing reform often lags or is “held hostage” during the legislative process, thwarting viable housing options for those in need at a national scale.
This raises the question, what can be done to support affordable housing in Boston and surrounding suburbs? As a Commercial Banker, my colleagues and I (unfortunately) have no control over the speed at which legislation gets passed, when housing permits are granted, or the recent increases in interest rates and construction costs. It is within the power of organizations such as Rockland Trust, however, to find avenues for supporting developers, homeowners, and non-profit groups and their affordable housing projects.
There are five steps that our business community can take to advance the creation of affordable housing, this includes:
- Educate borrowers on the advantages of Low-Income Housing Tax Credits (LIHTC). If the per capita allocations increase, more housing that meets the program's requirements could be developed and/or preserved. Additionally, these properties could be targeted to populations with even fewer resources.
- Support changes to local zoning to enable increased density. The biggest challenge is creating what is commonly known as “workforce housing,” or homes for those earning 60 to 120 percent of the area median income. In other terms, these individuals or families earn too much to qualify for subsidized/”affordable” housing while also being priced out of market-rate housing options. Organizations like MassHousing have led the charge to fund much of this important work, but more has to be done at all levels to help meet the need for affordable housing.
- Advocate for creative affordable housing solutions. Massachusetts has been and continues to be a center of innovation in many sectors. Creative affordable housing solutions often originate here and migrate across the country and soon become “best practices.” With all of the intellectual capital located here, I’m hopeful that the public, private, and nonprofit sectors will continue to work together, as we have in the past, through groups like the Citizens Housing and Planning Association (CHAPA) and others, to expand our thinking and find solutions that work for the long-term benefit of the Commonwealth.
- Accessible employee housing. The last several years spurred a small resurgence in employers purchasing housing for employees to rent or even purchase. In a time when employers are having to find creative ways to retain employees, offering the benefit of attainable housing to employees stands to benefit all parties involved. Especially in high-cost-of-living areas, such as the Cape and the Islands, businesses are encouraged to step up and consider how they can support employees with housing solutions beyond the traditional housing/relocation stipend.
- Maintain prudent lending practices…that ensure developers and owners of affordable housing can remain financially stable. From a borrower's perspective, lending has improved, in that the industry is mature and lenders are more experienced and therefore, more comfortable with lending in this sector. In addition, public resources such as the Low Income Housing Tax Credit program have been a steady source of capital. Yet, the challenge for lenders is to remain flexible but firm on loan structures to support the long-term needs of the community.
The key takeaway is that we recognize the crucial role our community can play in bridging the gap between legislation and immediate housing demands. The Affordable Housing Act represents a meaningful step forward, but progress requires an ongoing, collective effort at every level.
Together, through education, advocacy, and intentional decision-making, we can drive change and allow individuals and families to find safe and secure housing in their community.
