Patrick Signs ‘Expiring Use’ Rental Housing Law & Announces $150m to Preserve Long-Term Affordable Housing

 

Governor Deval Patrick recently signed a law to keep publicly-assisted rental properties affordable and announced the roll-out of a $150 million loan fund leveraged primarily through private dollars to support and secure long-term affordable housing preservation efforts.

The Governor’s signing of the “expiring use” bill creates a regulatory framework to preserve affordable rents in properties where long-term, publicly subsidized mortgages are paid off and affordability restrictions can then expire. An estimated 90,000 units could be affected, with about 17,000 of those units at-risk of losing their affordability through expiring use over the next three years. The legislation establishes notification provisions for tenants within expiring use properties, a right of first refusal for the state Department of Housing and Community Development (DHCD) or its designee to purchase publicly assisted housing, and modest tenant protections for projects with affordability restrictions that terminate.

“Working together with tenants, property owners, preservation experts, and municipalities, the state now has a proactive, comprehensive strategy to permanently preserve more of the Commonwealth’s affordable rental housing stock,” said Senator Sue Tucker. “It is critical, particularly in this economy, that we maintain housing options that are affordable to low income families, seniors, and people with disabilities. Preserving affordable housing is much less expensive than building it new.”

“This legislation represents a collaborative effort between the Legislature, the administration, nonprofits, and the private sector. The tireless efforts of tenants and advocates were vital in creating a strong tool that will have a lasting impact on the lives of so many.” said Representative Kevin G. Honan.

The Governor also announced a $150 million preservation loan fund created by the state quasi-public Community Economic Assistance Corp (CEDAC) in partnership with DHCD as they put together a pool of resources to help secure rental developments that are about to lose their expiring use restriction. The program is leveraged through state bond funds along with a $3.5 million award to Massachusetts from the John D. and Catherine T. MacArthur Foundation, $40 million from private lenders, and $100 million from the Massachusetts Housing Investment Corp (MHIC). MHIC is a private non-profit entity founded in 1990 by a consortium of banks and other corporate investors to fill a critical gap in meeting the credit needs of affordable housing developers and owners who are unable to get financing for certain projects from traditional lenders.

-From November 30, 2009 –“GOVERNOR PATRICK HIGHLIGHTS ‘EXPIRING USE’ RENTAL HOUSING LAW, ANNOUNCES $150M FUND TO PRESERVE LONG-TERM AFFORDABLE HOUSING ;New law, leveraging of public/private funds protects tenants” Press release at http://www.mass.gov/?pageID=gov3pressrelease&L=5&L0=Home&L1=Our+Team&L2=Lieutenant+Governor+Timothy+P.+Murray&L3=Councils%2c+Cabinets%2c+and+Commissions&L4=Interagency+Council+on+Housing+and+Homelessness&sid=Agov3&b=pressrelease&f=113009_expiring_use_law&csid=Agov3 retrieved 12/14/09.

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