In a push towards economic recovery and equity, Boston has earmarked $7 million in American Rescue Plan Act (ARPA) funds to support first-time homebuyers and invigorate local small businesses. Mayor Michelle Wu, flanked by city officials, initiated the allocation of these resources, aiming to further strengthen Boston's neighborhoods post-pandemic. In an announcement made yesterday, Mayor Wu detailed the plan that is set to extend the city's commitment to affordability and entrepreneurial growth.
Mayor Wu filed an order with the Boston City Council to channel the $7 million towards down payment assistance for prospective homeowners, the acquisition of properties to augment affordable housing stock, and aiding small businesses, including through the SPACE Grant Program. Under this ARPA funding, $3 million is allocated to the BHA First Home Program, which, as stated by Mayor Wu, "prioritizes Boston’s families by building generational wealth through homeownership opportunities." This would potentially assist an additional 57 families in becoming homeowners in Boston by 2026.
The Boston City Council President Ruthzee Louijeune voiced support for the investments made, noting that this move further solidifies efforts in creating a prosperous and just city. According to a Boston government publication, the council is collaborating with the mayor's office to ensure the funds support building a more stable and vibrant community.
Meanwhile, another $3 million of the ARPA investment is directed toward the city’s Acquisition Opportunity Program (AOP), aimed at preventing displacement and fostering long-term affordable housing. Said the Chief of Housing Sheila A. Dillon, with the newly allocated funds, it's aimed to leverage about $9 million of private financing for acquiring more apartment buildings. This program has historically played a crucial role in maintaining affordability and preventing displacement of low- and moderate-income renters in almost every neighborhood of Boston.
As the pandemic's economic ripple effects linger, bolstering small businesses also becomes vital. To that end, $1 million goes to the SPACE Grant Program, which assists businesses hoping to occupy vacant storefronts. Segun Idowu, Chief of Economic Opportunity and Inclusion, confirmed the success of the program in creating jobs and said, the third round of SPACE Grant funding will soon be announced. The businesses supported in previous funding rounds are reported to have generated nearly 600 new jobs with a quarter already operational, as per the city's statement.
