Boston's Mayor Michelle Wu released the provisional involvement of four development teams to foster affordable housing opportunities. This is part of the Welcome Home, Boston campaign, targeting city-owned parcels in Dorchester. Further Requests for Proposals (RFPs) considering additional parcels have been released, with additional RFPs to be released in the coming year according to the City of Boston Mayor's Office.
Beginning November 2022, Mayor Wu assigned $60 million of American Rescue Plan Act (ARPA) funding to aid income-restricted housing and financial assistance ventures. Boston aims to make 150 land parcels available for construction of income-restricted homeownership opportunities. Eligible first-time homebuyers are to procure reduced mortgage interest rates along with up to $50,000 in direct assistance, including down payment and closing costs assistance, through several programs. Further funding will be allocated for the development of a homeownership program for eligible Boston Housing Authority residents.
With Boston's homeownership rate currently at 35%, quite lower than the state's 62% average. White households have a homeownership rate of 44%, as opposed to Black or African American households at 31%, Asian or Pacific Islander households at 30%, and Hispanic/Latinx households at merely 17%. The plan addresses these disparities by developing city-owned parcels in regions with high rental rates, therefore creating more homeowner opportunities for varied ethnicities and races.
The developers chosen for these projects represent a diverse cohort committed to foster inclusivity. Groups such as the African Community Economic Development Organization of New England (ACEDONE), Boston Communities, Dorchester Design Collaborative, and Norfolk Design and Construction are certified Minority Business Enterprise (MBE), Women Business Enterprise (WBE), Veteran Business Enterprise (VBE), or Black, Indigenous, or people of color (BIPOC) companies. Moreover, they aim to hire local, minority contractors during construction.
MassHousing's CEO Chrystal Kornegay applauded the initiative, stating that these resources will to propel these vacant parcels into moderately priced homes, facilitating accumulation of wealth from home ownership.
The Welcome Home, Boston initiative is part of a larger growth agenda in Boston. Other elements include the update of the city's linkage policy requiring commercial developments to allocate funds for affordable housing, and revival of the inclusionary zoning policy to facilitate the construction of such homes. Furthermore, an Executive Order from the Mayor is aimed at speeding up the affordable housing creation process. The Fiscal Year 2023 budget dedicates $200 million in ARPA funds for housing, highlighting Boston's commitment to addressing its affordable housing crisis.
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