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      BOSTON - Tuesday, April 26, 2022 - Mayor
    Michelle Wu today highlighted her proposal to invest $106 million to expand
    opportunities for homeownership for Boston residents, including $60 million
    through American Rescue Plan Act (ARPA) funds and $46 million in City funds
    over three years. This proposal builds on Mayor Wu’s commitment to
    prioritize federal funds to address Boston’s housing crisis and boosts the
    City’s efforts to close the racial wealth gap by expanding affordable
    homeownership opportunities for BIPOC households and first-generation
    homebuyers.
     “Homeownership is crucial to building
    generational wealth and long term stability for families,” said Mayor
    Michelle Wu. “We have an opportunity to transform what homeownership
    looks like in Boston. These investments will support existing programs for
    first time homebuyers, build generational wealth for Boston families, and
    help bring Boston one step closer to becoming a Green New Deal city.”
    The new investments in affordable
    homeownership were part of Mayor Wu’s
    first operating budget proposal and federal spending plan, which were formally filed with the Boston
    City Council earlier this month. 
     The proposal includes $60 million in ARPA
    funds to:
    ·       Accelerate the production of affordable
    homeownership units supported by the Mayor’s Office of Housing (MOH) 
    ·       Support down payment assistance programs,
    including for first-generation buyers 
    ·       Expand the ONE+Boston Mortgage program, which lowers interest rates for
    income-eligible buyers  
     In addition, the proposed FY23 Operating
    Budget includes $3.4 million for homebuyer assistance programs, for a total
    of $10.2 million over the next three years. These investments are on top of
    $36 million from other City sources to support MOH’s homeownership
    development pipeline, which currently includes 312 new income-restricted
    units across 19 developments, all projected to break ground within the next
    three years. With additional support from ARPA funds, this pipeline of
    affordable homeownership units is expected to grow significantly. Together,
    these funds represent a significant increase in the City’s investment in
    affordable homeownership programs and production compared to previous
    years.
    
   |   |   The proposed investments in homeownership
    are part of an unprecedented commitment of $380 million to address housing
    affordability and stability through the Operating budget, the Capital
    budget, and federal recovery funds to build and acquire new affordable
    units, upgrade public housing, and expand housing stability services and an
    expanded voucher program.
    “This significant investment will both
    increase the stock of affordable properties in Boston and assist families
    that want to purchase homes in a very competitive market,” said Sheila
    Dillon, Chief of Housing and Director of Neighborhood Development. “In
    order to increase generational wealth, stabilize our residents and invest
    in neighborhoods, it is critical that we make additional resources
    available for homeownership development and programs.” 
    “We are thrilled that Mayor Wu and our city
    councilors understand the needs of thousands of MAHA members and
    graduates,” said Symone Crawford, Executive Director of the
    Massachusetts Affordable Housing Alliance. “And I’m proud of our MAHA
    community leaders who have worked so diligently to make this happen. This
    is an amazing accomplishment and a strong foundation for all of us to build
    on.” 
    “Investment in affordable housing at all levels
    matters if we are to foster generational wealth,” said Beverly
    Williams, Executive Team Leader with the Greater Boston Interfaith
    Organization. “GBIO is proud to celebrate this historic investment in
    affordable housing that does just that.” 
    Two programs slated to receive funding from
    the proposal, the ONE+Boston program and the financial
    assistance program for first-time homebuyers (FAP), assisted more than 150 households buy
    homes in the last year. Of those households, 60% were Black, Indigenous or
    People of Color (BIPOC).  
    “Dedicating these federal funds to
    first-generation and affordable homeownership will anchor our families in
    Boston and help close the racial wealth gap,” said Councilor Kenzie
    Bok, Chair of the Committee on COVID-19 Recovery. “I’m thankful for the
    Mayor’s partnership and for all the advocates who have pushed the City of
    Boston to make this enduring commitment.” 
    "We know that the lack of financial
    capital for closing costs and down payments is one of the most significant
    barriers to homeownership for BIPOC and first-generation homeowners,” said Councilor
    Kendra Lara, Chair of the Committee on Housing and Community Development.
    “This level of investment in the FAP and ONE+ program will ensure that
    we're removing those barriers and creating more opportunities for housing
    stability through homeownership for Boston residents."  
    Boston has an overall homeownership rate of
    35 percent, considerably less than the statewide homeownership rate of 62
    percent. Homeownership rates differ significantly by race and ethnicity, as
    44 percent of Boston’s white households are homeowners, compared to 31 percent
    of Black or African American households, 30 percent of Asian or Pacific
    Islander households, and 17 percent of Hispanic or Latinx households. 
    The Mayor’s Office of Housing works to
    expand access to homeownership by creating and preserving affordable homeownership
    units and providing financial assistance to aspiring homebuyers,
    particularly first-generation homebuyers. 
    The ONE+Boston program was designed to
    supplement one of the state’s existing affordable mortgage programs (the
    ONE Mortgage) by providing qualified buyers, based on area median income
    (AMI), additional discounts on interest rates. With the ONE+Boston program,
    qualified Boston residents who earn between 80% and 100% AMI will receive a
    half percent (0.5%) discount rate off the reduced interest rate offered
    through the ONE Mortgage product (currently about 4.65%). Boston residents
    who earn below 80% AMI will receive up to one percent (1%) off of the
    current ONE Mortgage rate. Qualified buyers will also be eligible for
    downpayment and closing cost assistance through the Boston Home Center. 
    The ONE+Boston program and the First
    Generation Homebuyer Program are two of several City resources available to
    first-time homebuyers in Boston. Through the Boston Home Center, the City’s
    one-stop-shop for homebuyers and homeowners, residents receive assistance
    in purchasing, improving, and keeping their home through a suite of
    resources including training, financial help and counseling to first-time
    and first-generation homebuyers, guidance and funding for home improvements
    and efficiency upgrades, and counseling to help families avoid foreclosure.
    The Home Center also markets homes developed for income-eligible,
    first-time homebuyers. 
    These proposals build on Mayor Wu’s
    initiatives to address Boston’s housing affordability, including filing
    a Home Rule
    Petition relative to
    real estate transfer fees and senior property tax relief, signing an Executive
    Order relative to
    affirmatively furthering fair housing, convening a Rent
    Stabilization Advisory Committee to inform future legislative proposals, and announcing
    the City’s new Chief of
    Planning. 
    For more information about the proposed
    budget, visit budget.boston.gov. For more information about the proposed
    ARPA spending plan, visit boston.gov/recover  |