$100M Fund Created to Spur Workforce Housing

Massachusetts Gov. Charlie Baker

LYNN, MA— Massachusetts Gov. Charlie Baker and officials with affordable housing finance agency MassHousing have announced the creation of a new $100-million found geared to the creation of workforce rental housing. The MassHousing fund is geared to assist projects that provide rental housing for households earning 61% to 120% of the area media income. State officials add that the fund will also assist those who have incomes that are deemed too high to qualify for subsidized housing, but are priced out of projects that offer affordable market rents. The new fund is in addition to the funding, resources and support the agency provides for very low and low-income households. “Making more affordable housing options available to working Massachusetts families deterred by rising rent expenses is essential to economic growth and development in communities throughout the Commonwealth,” says Gov. Baker. “These working middle-income families are the foundation of our economy and talented workforce, and the creation of this $100-million fund by MassHousing will advance opportunities for them to thrive and prosper.” Rising market rents present challenges for working families priced out of neighborhoods or spending more than the recommended 30% of their monthly income on housing expenses, MassHousing states. A household would have to earn $100,000 a year to afford the median rent of $2,497 per month in the Greater Boston area. Meanwhile the median income for a two-person household in the City of Boston is $78,500. A third of Boston metro area households fall within the income range of 61%-120% of AMI. “MassHousing recognizes that many middle-income households are struggling with housing costs and the agency felt it was important to create this fund for workforce housing,” says MassHousing executive director Timothy C. Sullivan . “We are committed to working with Gov. Baker to increase affordable housing opportunities for low-, moderate-, and middle-income residents of the Commonwealth.” The fund will provide up to $100,000 of subsidy per workforce housing unit with a goal of creating 1,000 new workforce housing units statewide. According to the MassHousing announcement, the agency will look to leverage strategic opportunities to use state-owned land for workforce housing development. The fund will provide monies for newly constructed units or will refinance a housing community where new workforce housing units will be created. The funding requirements remains consistent with development financing in MassHousing’s enabling statute ensuring that in addition to the workforce housing tier, at least 20% of the units in a financed development will be affordable to households at or below 80% of AMI. The fund will also ensure the workforce housing units will be deed-restricted for a term usually 30 years or longer as affordable to households with incomes between 61% and 120% AMI.