GOAL: Greater Boston communities are vibrant, safe and affordable.

OBJECTIVE: Increase the livability, affordability, and safety of Greater Boston communities.

STRATEGY: Increase neighborhood stability and the production and preservation of affordable housing for vulnerable populations.

Problem & Key Data
The combined effects of the recent economic and housing crises are creating affordability problems for those at the lowest rung of the ladder and jeopardizing the housing production system and infrastructure.

• Sub-prime lending and the financial crisis have put individual families and whole neighborhoods at risk, resulting in the loss of housing units, increased homelessness and stalled affordable housing production:
  • 12,430 foreclosure deeds were filed in Massachusetts in 2008 – 62% more than in 2007; Boston represented over 11% of these (primarily in low income and minority neighborhoods). Boston has 968 lender-owned foreclosed units.
  • Family homelessness is on the rise with 5,000 Massachusetts families in shelters, of which 1,519 are in Boston. Massachusetts has 750 homeless families in motels.
  • Lack of investors buying allocated Low Income Housing Tax Credits to finance production is holding up 31 shovel-ready projects in Massachusetts, of which more than 16 are in Greater Boston. Production of nearly 6,000 units of housing and stability of housing producers is affected.
    
    
• Instability in the housing market is affecting affordability for both renters and owners:
  • In 2006 52.4% of renters and 43.1% of homeowners in Greater Boston paid more than 30% of income for housing.
  • Expiring HUD mortgages threaten the loss of ~21% (19,475) of the Expiring Use affordable units in Massachusetts before 2010, which are likely to be converted to market rate housing particularly affecting low income elders, disabled and low income families.
    
    
• Poor social and physical conditions affect the stability of neighborhoods and the mobility of people:
  • Of the 968 bank/lender owned foreclosed units in Boston, 344 were “troubled” or “abandoned” and “posed a significant risk to neighborhoods by attracting crime and lowering local property values” according to the City of Boston’s 2008 Real Estate Trends newsletter.
  • Experiencing high neighborhood poverty throughout childhood strongly increases the risk of falling down the income ladder according to Pew’s 2009 Neighborhoods & Black/White Mobility Gap report.
    

Approach:
Housing is a stabilizing force in the lives of families and communities, as well as a key aspect of regional competitiveness.  The region’s housing market has seen two extremes.  Before September 2008, the region’s housing market was among the most expensive, and affected the region’s ability to attract talent for growth sectors of the economy. The more recent housing and economic crashes have resulted in an utterly chaotic housing market and have seriously affected the state’s subsidy systems. In addition, the credit crunch and lack of markets for Low Income Housing Tax Credits have stalled production and affected the stability of community development corporations (CDCs) and nonprofit housing developers – who have developed more than 6,000 new housing units since 2000 and helped more than 32,000 families in 2008 alone.

To make a meaningful contribution towards these significant issues the Foundation will:

1. Increase housing production and preservation through program related investments, public policy and advocacy.
2. Significantly reduce homelessness in Boston through a housing first approach in collaboration with the City, foundations and nonprofits.
3. Strengthen the financial, collaboration and production capacity of CDCs and housing advocates.
4. Consciously link housing to other Foundation objectives to coordinate and channel resources into smart-growth, livable neighborhoods that meet 21st century needs.
    

Desired End State

• Decrease % of renters and homeowners who pay more than 30% of their income for housing
• Decrease the number of homeless families in Boston
• Improve indicators of neighborhood vitality—such as reduction in youth crime, increased use of public transit, and rising household income levels—for 2 to 3 neighborhoods

Download a PDF of the new strategic framework.