The challenges of protecting naturally occurring affordable housing

As Greater Boston continues to battle the housing affordability crisis, the preservation of naturally occurring affordable housing (NOAH) is an important strategy that must be prioritized alongside the construction of new affordable housing units. Property acquisitions by mission-driven community development corporations (CDCs) working in partnership with impact and traditional investors are an important part of this strategy.

This case study, underwritten by the Boston Foundation in our effort to support greater understanding of the tools needed to strengthen housing affordability, explores Harborlight Homes (Harborlight)'s effort to acquire a portfolio of NOAH in Lynn, Mass. The deal fell through because of gaps in the capital stack and concerns about community and resident support for anticipated property management policies and program regulations. The case study illustrates that large scale grant and impact investment, community education and buy-in, and ecosystem collaboration are critical for the success of future NOAH deals in the Commonwealth.