Affordable Housing

Low and Middle Class Affordable Housing By Isabel, Emma, Dawit and Nealaksi

What is Affordable Housing? ➔ Housing that is accessible to those below the median household income or recognized by the affordability index.

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What issues exist?

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Homelessness

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Minimum wage not rising with same momentum as housing prices

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Large income disparity

What issues exist? ╺

Increasing population

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Tight inventory

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High demand

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Why Affordable Housing? - Helps families - Helps communities - Reduces gentrification - Increases social and economic diversity

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The 30% Rule However… 22% of all non-student households in Boston paying >50% of their income on housing 6

Source: U.S. Census Bureau, 2012-2016 American Community Survey, DND Analysis of Permitting Data.

This makes sense. Let’s break it down...

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Min. Wage = $12 Typical work week: 40 hrs

$480/week → $25,000/year - taxes = $17,000 (net)

Quincy avg. rent: $1,300/month → $15,600/ year 8

Recommendations -

Build TALL

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Tax high-end real estate

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Mayor Walsh’s 2030 plan (69,000 units

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Private developers create affordable housing 9

by 2030, 1,000 preserved)

Recommended Option Mayor Walsh’s 2030 Plan - Revised -

Prevents eviction and helps first-time buyers

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$50 Million annually

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Apartments rented out

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69,000 new units in neighborhoods surrounding the city

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Plan of Action Funding Existing Private resources: - Mass Housing Partnership (MHP) - Mass Housing Investment Corporation LIHTC: (The Low-Income Housing Tax Credit)

- Incentives for investors to fund Linkage Fees: 11

- Allows for funding expansion

Plan of Action ╺

Establish partnership with private resources

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Private resources will: ╶ Hire developers ╶ Obtain project necessities ╶ Build affordable living spaces

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11 Years Later... 1) Low and middle income tenants move in 2) Tenants pay subsidized price to private companies 3) Community Preservation Act ($20 million funding - split) and $20 million federal housing fund will pay for rest

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Results ➔ Diversity of tenants in Boston area would increase ➔ More low and middle income tenants ➔ Population increase ➔ Job diversity 14

“ "Addressing rising housing costs is critical for preserving the diversity and character that makes Boston a place where all residents can thrive." - Mayor Marty Walsh 15