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BOSTON - Monday,
August 16, 2021 - Mayor Janey today filed a Home Rule Petition with the
Boston City Council to generate an estimated $65.3 million to expand
affordable housing in the city. The petition creates a fee of up to two
percent on real estate sales over $3 million. If passed, the measure will
increase funding available for affordable housing in Boston, including
preserving existing and creating new income-restricted housing. After
passage by the Boston City Council, the legislation must then be approved
by the Massachusetts State Legislature and signed by the Governor.
“As a person who has
experienced housing insecurity, creating more homes that Boston residents
can afford is my priority,” said Mayor Janey. “It’s important that the City
of Boston is creative in generating funding for income-restricted housing.
I look forward to working with the Boston City Council and the
Massachusetts Legislature to pass this critical legislation that will allow
more housing opportunities to keep and attract residents.”
This legislation
builds on a 2019 Home Rule Petition that passed the Boston City Council,
but has not advanced in the Massachusetts State Legislature. The 2019
version proposed a fee of up to two percent on real estate sales over $2
million. The fee will instead be applied to the sales value above $3
million. This change limits the fees borne by long-term, middle-class
homeowners.
Based on 2020 sales
over $3 million, a two percent transfer fee would yield an estimated $65.3
million for affordable housing production and programming from 219
transactions. The largest number of transactions were in Back Bay/Beacon
Hill (90) neighborhoods, the Central/Downtown neighborhoods (27), the South
End (24), and South Boston/Seaport (24) area.
This Home Rule
Petition builds on the City’s efforts to generate affordable housing for
residents. This year, the Janey administration has invested $11.5 million
in city resources into income-restricted, affordable housing which
leveraged another $82.4 million in other public and private investment
sources for a total $94 million investment.
The recently adopted
FY22 budget included $6 million in new City funding for affordable housing
programs - a 21 percent increase - including funding for City-funded
vouchers and housing support for homeless households. In addition, the City
has allocated $27 million of American Rescue Plan Act funds for housing
initiatives, including $20 million to acquire and convert market-rate
properties to income-restricted affordable housing and $2.3 million for
assistance to homebuyers and homeowners. This is in addition to $145
million in federal COVID-19 relief funding the City has received and is
using to support renters and homeless households impacted by the pandemic
and to build more housing for low and moderate income residents.
Earlier this year,
the City of Boston modified the Linkage program, requiring a 44 percent
increase in the Linkage fees collected by large scale commercial
developments over 100,000 square feet in Boston to support the creation of
affordable housing. In 2020 alone, new development approved by BPDA is
estimated to generate over $43.2 million in Linkage fees to support
affordable housing. In the future, a similar level of approvals would
generate $63.2 million. The funds collected through Linkage are
administered by the Neighborhood Housing Trust through the Department of Neighborhood Development (DND).
Since 2014, funding
from the city's operating and capital funding for housing programs has
increased by more than 300%, while adjustments to the Inclusionary
Development and Linkage Policies, and the adoption of the Community
Preservation Act have resulted in tens of millions of dollars of additional
revenue for housing. This funding has supported the creation of affordable
rental and homeownership opportunities, the development of permanent
supportive housing for homeless households, and assistance for renters
facing eviction. It has also supported the conversion of hundreds of
market-rate units into income-restricted affordable housing and the
creation of the first City-funded rental voucher program for low-income
Bostonians.
Also earlier this
year, Mayor Janey announced the Boston Home Center's first-time
Homebuyer Program has been expanded to provide up to $40,000 in assistance to income-eligible,
first-time homebuyers who seek to purchase a home in Boston. | 
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