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$100m pledged for new housingRomney eyes 5,000 mixed-income unitsBy Thomas Grillo, Globe Correspondent, 1/26/2004 In his first major step toward resolving the state's severe housing shortage, Governor Mitt Romney will pledge $100 million today to build 5,000 units of mixed-income housing during the next three years, administration officials said. "This is very welcome news because the funds provide new resources for desperately needed affordable housing production," said Aaron Gornstein, executive director of the Citizens' Housing and Planning Association, a Boston nonprofit agency that encourages affordable housing production. The administration's initiative, called the Priority Development Fund, is expected to increase the supply of mixed-income housing by providing funds to developers through MassHousing, the state's quasi-public housing lending agency. The money, which comes from the agency's reserve account and does not use new tax dollars, is expected to leverage as much as $1 billion in additional financial housing resources, administration officials said. The plan allocates $75 million for mixed-income developments where at least 20 percent of the units are affordable to low-income families; $22 million for construction of mixed-income housing around MBTA stations; and $3 million in planning grants for communities. Up to $75,000 per unit will be available to developers, and priority will be given to builders of units with three or more bedrooms. The announcement today coincides with the release of a study by the University of Massachusetts Donahue Institute, which finds that 250,000 Bay State families are spending more than half of their income on housing. With the median price of a single-family home in Greater Boston reaching $450,000, the study indicates that the region's housing crisis is affecting homebuyers at almost every income level. Romney raised expectations during his gubernatorial campaign when he pledged to double the number of housing units annually from 15,000 to 30,000 by the end of his first term in 2006. Romney reiterated the promise in his State of the State address Jan. 15. But until now few details have emerged. Lisa Alberghini, executive director of the Planning Office for Urban Affairs, the nonprofit corporation that builds mixed-income housing for the Archdiocese of Boston, welcomed the news. "This is new money and developers will be very supportive," she said. "The fact that this targets three-bedrooms is excellent because we need more family housing." Thomas Gleason, MassHousing's executive director, said he did not have information over the weekend on how much money is in the agency's reserve account. "We have not been in the position to use them before," he said. "The money stems from running our business more efficiently, from a large increase of income from lending, and investment income that has accumulated over time." In December, Romney encouraged towns to embrace transit-oriented development, construction of housing near T stations as an alternative to suburban sprawl. Officials say 10,000 units could be created on 70 acres of T-owned land around 20 stations. But developers and activists say there's often local resistance from those who fear additional mixed-income housing will increase school enrollments and drive up municipal costs. Kingston and Holbrook voters opposed plans for development near commuter rail stations in recent town meetings. In Reading, voters rejected a mixed-use development, including housing on a 33-acre former landfill. In Bedford, abutters opposed 139 units near the Great Meadows National Wildlife Refuge, saying the apartments would add more traffic to an already congested part of town. And in Southborough, some residents are fighting development under the state's Chapter 40B law that allows dense development if at least 25 percent of the units are affordable. Gornstein said there will continue to be opposition to new housing in some communities. But it helps when the governor and state lawmakers speak out about the need for housing. "We have to do a better job of organizing in the communities to educate people about what affordable housing looks like, who it serves, and the benefits it provides," Gornstein said. "It's up to the housing community to mobilize." The Commonwealth Housing Task Force, a collaboration of activists, developers, business leaders, and academics, is drafting legislation that would reward communities that relax their zoning rules. If the measure is approved, cities and towns would get money for each new housing unit built that can be used to cover the cost of educating children. Cooperating communities would be rewarded with cash for infrastructure improvements as well. Jane Wallis Gumble, director of the state Department of Housing and Community Development, said the MassHousing initiative alone will not solve the state's housing crisis. But she said this is the first step in Romney's commitment toward building additional housing in the state. Doug Foy, the administration's chief of Commonwealth development, said more proposals will follow but declined to provide specifics. On Wednesday, Romney will release the proposed budget for housing and community development, which he said will "fare pretty well in a time of austerity." "The governor's goal is challenging, but he feels passionately about getting more housing built," Foy said. "We have lots of aggressive ideas and if we can pull them off we can double housing starts. Some will require legislation, others we can do administratively, and some will require action on the local level." Despite the infusion of additional cash, Gornstein said that advocates would continue to fight for adequate state funding to produce and preserve affordable housing. "This new program is a great step forward, but we don't want to send a message to the Legislature that they don't have to do anything," he said. Back to Original Article: Mortgage News You Can Use
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