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Q2 REPORT 2017
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CITY OF BOSTONMAYOR MARTIN J. WALSH
Q2 REPORTJULY 2017
HOUSING A CHANGING CITY:BOSTON 2030
Boston 2030 Goal: • Create53,000additionalunitsofhousingby2030,inordertoaccommodatepopulation
growthofnearly100,000newpeople.
HOUSINGBOSTON2030: AccommodatingGrowthQ2 2017 SUMMARY
Q2 2017 PERFORMANCE: ALL HOUSING UNITSPERMIT TARGET Q2 2017 PERMITTED Q2 2017 % TARGET
663 1,684 254%
CUMULATIVE PERFORMANCE: ALL HOUSING UNITSPERMIT TARGET PERMITTED ACTUAL % TARGET
17,212 21,963 128%
Observations Q2 2017:
Completions
TwoandahalfyearsintotheimplementationofMayorMartinJ.Walsh’sHousingBoston2030plan,thenumberofnewunitscompleted,permitted,orapprovedhascontinuedtorise.
13,551newunitshavebeencompletedbytheQ22017reportingdateofJune30th;thisnumberrepresentsenoughhousingtoaccommodate25,000residents.ThedemographicsunderlyingHousingBoston2030projectedapopulationgrowthofapproximately30,800peopleby thissametimeperiod,sowhilesignificantprogresshasbeenmade,completionshavenotyetcaughtupwithhousingdemand.
That said, the 8,412 units currently in construction will house another 14,600 people whencompleted,whichshouldcontinuetoeasepressureontheresidentialrealestatemarket.
Ofthe13,551completedunits,40percentareaffordabletolowandmiddleincomehouseholds.
Record-Setting Permitting
With1,684newunitspermittedinQ22017,theCitysetanew20-yearrecordforthenumberofunitspermittedinasinglequarter.Q22017performancewastriplethetargetat254%.
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CITY OF BOSTONMAYOR MARTIN J. WALSH
HOUSING A CHANGING CITY:BOSTON 2030
Q2 REPORTJULY 2017
HOUSINGBOSTON2030: AccommodatingGrowthQ2 2017 SUMMARY
Observations Q2 2017, continued: A Robust Pipeline
Therearecurrently25,344newunitsintheCity’sdevelopmentpipeline;8,268ofthoseunitsintheCity’spipelinehavealreadyfiledforpermitsattheInspectionalServicesDepartment(ISD).
Rising Development Interest in Outer Neighborhoods
69percentofnewpermitapplicationsarefordevelopmentslocatedoutsideofthedowntowncore.Manyoftheseunitsareexpectedtobemoremoderatelypriced.Bycomparison,56percentofallnewdevelopmentcompletedtodatehasbeenindowntownlocations.
Construction Employment
The21,963unitsthathavebeencompletedorarecurrentlyinconstructionhavecreated22,800jobsintheconstructionsector.
Notable Projects Q2 2017:
RESIDENCES AT FAIRMOUNT: Thismixed income, transit-orienteddevelopmentonthecommuterlineinHydeParkpulledpermitstobeginconstruction.All27rentalunitswillbedeed-restricted,with3unitsreservedforthosemaking61-80%ofAMI,13forthoseearning60%,5forthoseearning50%,and3eachreservedforthoseearninglessthat30%orwhohavebeenhomeless.
1235 VFW PARKWAY:This80unitnewbuildingonthesiteoftheforemerIHOPwillbringsomeneededfamilysizedapartmentstoWestRoxburyrentaimarketwitha43two-bedroomand21three-bedroomunits.Tenunitswillrestrictedtothoseearninglessthan70%ofAMI.
UPPER WASHINGTON: This building in the Four CornersneighborhoodofDorchesterusedeightCIty-ownedandoneprivateparceliscreating35rentalsandstreetfrontcommercialspace.All35unitsaredeed-restricted;4areone-bedroom,19two-bedroom,and12three-bedroomunits;26unitsarereservedforthoseearninglessthan60%ofAMI.Ninearereservedfortheformerlyhomeless.
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CITY OF BOSTONMAYOR MARTIN J. WALSH
Q2 REPORTJULY 2017
HOUSING A CHANGING CITY:BOSTON 2030
HOUSINGBOSTON2030: Low-Income/Non-ElderlyHousingQ2 2017 SUMMARY
Boston 2030 Goals: • Increasethepaceoflow-incomehousingproductionby50%--from234annuallyfrom
2011-2014to347unitsannually.• Create6,500newlow-incomeunitsby2030.
Q2 2017 PERFORMANCE: LOW INCOME HOUSING UNITSPERMIT TARGET Q2 2017 PERMITTED Q2 2017 % TARGET
87 120 138%
CUMULATIVE PERFORMANCE: LOW INCOME HOUSING UNITSPERMIT TARGET PERMITTED ACTUAL % TARGET
1,803 1,691 94%
Observations Q2 2017: With120newlow-incomeunitspermittedthisquarter,Q22017wasthebestquarterfor low-incomeproductioninmorethantwoyears.
Completions
Atotalof1,286newlow-incomenon-elderlyunitshavebeencompletedtodate.Theseunitshavehousedanestimated2,250lower-incomeresidents.
Housing for the Homeless
Of the 1,691 new low-incomeunits permitted to date, 369 havebeen set aside for homelessindividualsandfamilies.
Low Income Pipeline
TheCitycurrentlyhasapipelineof1,128newnon-elderlylowincomeunits.595ofthoseunitshavebeenawardedfundingfromtheCityandarenowintheStatefundingqueuethatcouldnecessitateputtingoffconstructionbyayearortwo
WeanticipatethattheStatewillannounceanewroundoffundingawardsinJulyof2017,allowingmanyoftheseimportantprojectstomoveintoconstruction.
More Family Sized Housing Coming On Line
The creation of low-income family sized housing -- units with two or more bedrooms -- isincreasing.In2014,38percentofunitspermittedhadtwoormorebedrooms;in2017todate,thatsharehasrisento59percent.
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CITY OF BOSTONMAYOR MARTIN J. WALSH
HOUSING A CHANGING CITY:BOSTON 2030
Q2 REPORTJULY 2017
THE HARMON APARTMENTS:36unitsofADAcompliantaccessiblehousingforpeoplewithprogressiveneurologicaldisease,includingservicesandtechnologicaladaptions.20unitswillbesetasideforthoseearninglessthan60%ofAMI,Anothersixwillbesetasideforthoseearninglessthan30%,andanadditionalfourarereservedfortheformerlyhomeless.
Stabilizing Low-Income Housing Through Acquisitions
428 new low-income units have been created through the acquisition of market housingandconverting it toaffordablehousing. Inadditiontostabilizingtenanciesandcreatingnewaffordablehousingthatisprotectedfrommarketforces,thisisalsoasoundeconomicstrategyforcreationofnew,income-restrictedhousing.
In2016theCityexpandedthismodelwiththeAcquisitionOpportunityProgram,a$7millionfundthathascreatednewlowincomeunitsrequiringanaveragesubsidyof$75,000perunit.
Resources: Harnessing The Building Boom For Affordable Housing
Inorderto increaseproductionof lowandmiddle incomeunits, theCityallocatedadditionalfundingincreasingby$20mto$50.1minFY16and$54.9minFY17.Thisfundingwasmadepossiblethroughincreasedcollectionsfromprivate,market-ratedevelopment,including:
• Linkage: Collection of affordable housing obligations from commercial developmentshaveincreasedfrom$7.7mperyeartoanaverageof$10.3mannually.
• Inclusionary Development: Averageannualcollectionsofaffordablehousingcommitments
fromnewresidentialdevelopmentshaverisenfrom$8.5mbefore2015to$17.6m.
• Community Preservation Act: InFY18,thisvoter-approved1%levyisexpectedtogenerateabout$16mannually,withato-be-determinedamountcommittedtoaffordablehousing.
Notable Projects Q2 2017:
HOUSINGBOSTON2030: Low-Income/Non-ElderlyHousingQ2 2017 SUMMARY
COPPERSMITH VILLAGE RENTAL:41of56units inthismixeduse,mixed income development will be restricted, 33 units will bereservedforthoseearninglessthan60%ofAMI,withtworeservedforthoseearninglessthan30%,andanadditionalsixreservedfortheformerlyhomeless.
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CITY OF BOSTONMAYOR MARTIN J. WALSH
Q2 REPORTJULY 2017
HOUSING A CHANGING CITY:BOSTON 2030
HOUSINGBOSTON2030: MiddleIncomeHousingQ2 2017 SUMMARY
Boston 2030 Goal: • Create20,000newunitsofhousingaffordabletothemiddleclassby2030.
Q2 2017 PERFORMANCE: MIDDLE INCOME HOUSING PERMITSTARGET DEED-RESTRICTED MARKET RATE MIDDLE TOTAL % TARGET
250 80 372* 452* 181%
CUMULATIVE PERFORMANCE: MIDDLE INCOME HOUSING PERMITSTARGET DEED-RESTRICTED MARKET RATE MIDDLE TOTAL % TARGET
6,495 2,087 4,839* 6,926* 107%
*Affordabilitywascalculatedbasedontheaveragerentintheneighborhoodwherethepermitwasfiled.Numbersmaychangeasrentsarevalidated.
Observations Q2 2017: With452newmiddle-incomeunitspermittedthisquarter,2017isontracktobeastrongyearforproductionofhousingaffordabletothemiddleclass.1,168unitshavealreadybeenpermittedinfirsttwoquartersof2017,comparedto980inallof2016.
Completions
A total of 1,092 deed-restricted and 3,056 market-rate units affordable to middle incomehouseholds have been completed to date, for a total 4,148 new units. Housing Boston 2030demographicprojections indicatedtheCityneededtocreate3,393newmiddle-incomeunitsbythisdate.
Withthiskeyproductiongoalbeginningtobefulfilled,thehopeisthatastabilizationofrentsaffordabletothoseearningmiddleincomewageswillcontinue.In2016,rentsinexistinghousingstock(builtpriorto2011)outsidethedowntowncoredecreasedby5percentfrom2015.TheCityiscloselymonitoringthiskeymetric.
Increasing the Pace of Middle Income Production
Theaveragepaceofproductionofhousingaffordabletothemiddleclasshasrisensubstantially–from821unitsannuallyfrom2011-2014to1,446unitsfrom2015untilnow.
This increase isdrivenprimarilyby the increasingshareofnewproduction inmiddle-incomeneighborhoods.From2011-2014,only34%ofnewstartswereinmiddle-incomeaffordableareasoutsidethedowntowncore;bycontrast,from2015untilthedateofthisreport,55%havebeen.
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CITY OF BOSTONMAYOR MARTIN J. WALSH
HOUSING A CHANGING CITY:BOSTON 2030
Q2 REPORTJULY 2017
Observations Q2 2017, continued: A Robust Middle Income Pipeline
Basedonestimatedaffordabilityandpricingofnewconstructioninthelocalmarket,theCityestimatesthatthereiscurrentlyapipelineof8,015middleincomeunits.Ofthese,3,660havealreadyfiledforpermitswithISD.TheseunitswillbeformallycountedoncetheyarecompletedandtheCityhasverifiedsalesandrentalprices.
Creating New Homeownership
745ofthe6,926middleincomeunitspermittedtodate(11%)areownershipunits.Bycomparison,thehomeownershiprateforthemiddleclassis43%inBostonand69%inGreaterBoston.Thisshortage in production of new homeownership units will keep the homeownershipmarketcompetitiveforcondominiumsfortheforeseeablefuture.
TheMayor’sHousing InnovationLaband theDepartmentofNeighborhoodDevelopmentareexaminingthisissuetocreatenewstrategiestoincreasehomeownershipopportunitiesaffordabletothoseearningmiddleincome.
TheBostonHomeCentercontinuestoeducatepotentialhomebuyersaboutthefinancialrealitiesofhomeownershipandhowbesttoprepareforit.
HOUSINGBOSTON2030: MiddleIncomeHousingQ2 2017 SUMMARY
Q2 2017 PERFORMANCE: FIRST TIME HOMEBUYERS ASSISTEDPURCHASED CITY
CREATED HOUSINGPURCHASED OPENMARKET HOUSING
TOTAL FIRST TIME HOMEBUYERS ASSISTED
24 17 41
CUMULATIVE PERFORMANCE: FIRST TIME HOMEBUYERS ASSISTEDPURCHASED CITY
CREATED HOUSINGPURCHASED OPENMARKET HOUSING
TOTAL FIRST TIME HOMEBUYERS ASSISTED
365 303 668
CUMULATIVE PERFORMANCE: POTENTIAL HOMEBUYERS EDUCATEDQ2 2017 GRADUATES PREVIOUS GRADUATES* TOTAL GRADUATES*
866 23,307 24,173
*OnlygraduatesduringHousingBoston2030planperiodcounted.
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CITY OF BOSTONMAYOR MARTIN J. WALSH
Q2 REPORTJULY 2017
HOUSING A CHANGING CITY:BOSTON 2030
HOUSINGBOSTON2030: MiddleIncomeHousingQ2 2017 SUMMARY
Observations Q2 2017, continued: Helping Residents Stay in Their Homes
StabilizingBoston’sneighborhoodsisakeycomponentofthehousingplan.OneofthewaysinwhichtheCityisaidingthiseffortisbyensuringthathomeownersareretainingandmaintainingtheirproperties--assistinghomeownersatriskforforeclosure,forexample.TheCityalsooffersassistancetohomeownersinneedofhelprepairingtheirhomes.Althoughtherearenoformalgoalsforthisworkinthehousingplan,theCitytracksitseffortsinthisarea.
Note: As ownership retention is a key component of the strategy for housing Boston’s elders, senior ownership retention is reported in the Seniors section of this report.
Q2 2017 PERFORMANCE: OWNER RETENTIONNON-SENIOR
HOME RENOVATIONSNON-SENIOR
FORECLOSURES PREVENTEDTOTAL NON-SENIOROWNER RETENTION
20 24 44
CUMULATIVE PERFORMANCE: OWNER RETENTIONNON-SENIOR
HOME RENOVATIONSNON-SENIOR
FORECLOSURES PREVENTEDTOTAL NON-SENIOROWNER RETENTION
488 545 1,033
Notable Projects Q2 2017:
GLENWAY ROXTON NEIGHBORHOOD HOMES: Three emptyparcelsoflandinRoxburyarebeingturnedintothreetwo-familyhomes, or six units of housing. Homes will be sold to income-certifiedfirst-timehomebuyersearningmiddleincomewages,andaredeed-restricted.
CLIPPERSHIP WHARF:ThismixedusedevelopmentinEastBostonwillcreate478units,and fund 52unitsat 125SUMNERSTREETincluding22familysizedrentalunitsrestrictedtoverylow-incomeBHAtenantswhoseunitsarebeingreplaced.30condoswillalsobecreated;14willbedeed-restrictedforthoseearningbetween80-120%ofAMI,andtheothersixteenwillbemarketrate.
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CITY OF BOSTONMAYOR MARTIN J. WALSH
HOUSING A CHANGING CITY:BOSTON 2030
Q2 REPORTJULY 2017
HOUSINGBOSTON2030: SeniorsQ2 2017 SUMMARY
Boston 2030 Goal: • MaintainBoston’shistoricpaceoflow-incomeelderlyhousingproduction,inthefaceof
theeliminationoftheFederalSection202program,creating75unitsannually,and1,500newunitsby2030.
Q2 2017 PERFORMANCE: SENIOR HOUSING UNITSPERMIT TARGET PERMITTED ACTUAL % TARGET
19 0 0
CUMULATIVE PERFORMANCE: OWNER RETENTIONPERMIT TARGET PERMITTED ACTUAL % TARGET
487 284 58%
Observations Q2 2017Theproductionofaffordableseniorhousingisnotkeepingpacewithstatedproductiongoals.However,theCityhasidentified192unitsofseniorhousingthatareeitherinthepipelineorabouttobeginconstruction.ManyofseniorprojectsarecurrentlywaitingforStatefunding.
Completions
All293elderlyunitspermittedtodatehavebeencompleted,ofwhich284arelow-incomeunits.Theseunitsshouldhouse391seniors.
New City Line Item
InFY16,theCitycreatedanew$1.75mlineiteminitsbudgettosupportSeniorhousingproduction.Thishelpstooffsettheaverageannuallossof$9.75minFederalSection202funding.
Helping Seniors Retain Their Homes
Low-income seniorhomeowners canexperiencefinancial stress, as thecostofmaintainingahomecanbeprohibitivelyexpensiveonafixedincome.Deferredmaintenanceandmortgagedelinquencies,however,puttheseniorinunsafelivingconditions,andatriskforforeclosure.Toaddresstheseissues,theCityoffersinterest-freehomeimprovementloansthatzeropaymentsuntilthehouseissoldortransferred.
TheCityalsooffersforeclosurepreventionservicesandgeneralcounselingtoseniorhomeowners.
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CITY OF BOSTONMAYOR MARTIN J. WALSH
Q2 REPORTJULY 2017
HOUSING A CHANGING CITY:BOSTON 2030
HOUSINGBOSTON2030: SeniorsQ2 2017 SUMMARY
Notable Projects Q2 2017
Q2 2017 PERFORMANCE: SENIOR HOMEOWNER RETENTIONHOMES
RENOVATEDFORECLOSURES
PREVENTEDTOTAL SENIOR
HOMEOWNERS RETAINED
14 10 24
CUMULATIVE PERFORMANCE: SENIOR HOMEOWNER RETENTIONHOMES
RENOVATEDFORECLOSURES
PREVENTEDTOTAL SENIOR
HOMEOWNERS RETAINED
326 154 480
150 RIVER STREET: Community process and discussion aboutthe siting of affordable, senior rental housing in Mattapan ona 42,000 square footparcel. Twoproposalswere receivedaftertherequestsforproposalweremade,andbothdevelopershavepresentedtothecommunity,whichhasrequestedtimetocraftcomment.
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CITY OF BOSTONMAYOR MARTIN J. WALSH
HOUSING A CHANGING CITY:BOSTON 2030
Q2 REPORTJULY 2017
COLUMBUS AVENUE DORMITORY: NortheasternUniversity’snew dorm was permitted in Q2 2017, and will add anadditional812dormbedstoitsdowntownBostoncampus.
HOUSINGBOSTON2030: StudentsQ2 2017 SUMMARY
Boston 2030 Goal: • Create16,000newundergraddormbedsby2030,reducingthenumberofundergraduates
inprivatehousingby50%by2030.
Q2 2017 PERFORMANCE: DORMITORY BEDSPERMIT TARGET PERMITTED ACTUAL % TARGET
235 812 346%
CUMULATIVE PERFORMANCE: DORMITORY BEDSPERMIT TARGET PERMITTED ACTUAL % TARGET
3,294 5,664 172%
Observations Q2 2017Q22017dormproductionwasmorethantriplethetargetpace;Northeastern’sColumbusAvedormitorywilladd812newbeds.ThisoneprojectputtheCityaheadofscheduleinproductiontargets.
Completions
Of the 5,664 dormbeds permitted, 3,072 are complete.With these completions removingstudentsfromthehousingmarket,approximately800-900unitswillberestoredtoworkforcehousing.
Off Campus Count
Thenumberofoff-campusundergraduatesinBostonhasdecreasedfrom24,492inthe2013-14academicyearto23,348inthe2016-17academicyear.
Dorm Pipeline
Thedormitorypipelinenowstandsat1,577netbeds.TheCitywillcontinuetoworkwithBoston’scollegesanduniversitiestoencourageadditionaldormitorydevelopment.
Notable Projects Q2 2017
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CITY OF BOSTONMAYOR MARTIN J. WALSH
HOUSING A CHANGING CITY:BOSTON 2030
Q2 REPORTJULY 2017
HOUSINGBOSTON2030: PreservingAffordableHousingQ2 2017 SUMMARY
Boston 2030 Goals: • Retainatleast97%ofat-riskaffordablehousingunits(29,534units)by2030.• Keeplossesofaffordablehousingunitsbelow3%(913units)withaspecialefforttoprotect
theexpiring1,043“13A”unitsthatweredevelopedwithStatefunding.
Q2 2017 PERFORMANCE: AFFORDABLE RENTAL PRESERVATIONTARGET Q2 2017 PRESERVED Q2 2017 % TARGET
325 52 16%
CUMULATIVE PERFORMANCE: AFFORDABLE RENTAL PRESERVATIONTARGET PERMITTED ACTUAL % TARGET
12,045 10,674 89%
Observations Q2 2017: Boston’scommitmenttoaffordablyhouseitslower-incomeresidentsdatestotheBostonHousingAuthority’sfirstpublichousingdevelopments inthe1930s.Sincethen,theCityhasaccrueda50,000-unitportfolioofaffordablehousing,makingitthenation’sleader.with20%ofitshousingstocksetasideorrestricted.30,477ofthoseunitsareprivately-ownedrentalunits,manycreatedunderaffordabilityagreementssettoexpire,givingtheownertheoptiontoconverttomarketrate.Preservingaffordability in97%oftheseunits isahighbar,buttheCity isshowingsomeprogresstowardachievingthisgoal.
In Q2 2017, preservationwas below target, although cumulative efforts are performing neartarget.Moreimportantly, lossesarewellbelowthecapneededtomaintain97%,withonly61unitslostoutofapotential188.Inaddition,noneofthe1,04313AunitsthatweredevelopedwithStatefunding,andareineligibleforfederalassistancefunds,werelost.
Preservation Pipeline
TheCitycurrentlyhasanactivepipelineofpreservationwith1,233unitsin12projects.
Q2 2017 PERFORMANCE: LOSS MITIGATION LOSS CEILING
Q2 2017 NON 13A LOSSES 13A LOSSES TOTAL UNITS LOST
13 0 0 0
CUMULATIVE PERFORMANCE: LOSS MITIGATION LOSS CEILING
Q2 2017 NON 13A LOSSES 13A LOSSES TOTAL UNITS LOST
188 61 0 61
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