TheGreaterBoston

HousingReportCard2002CenterforUrbanandRegionalPolicy(CURP)NortheasternUniversityCitizensHousingandPlanningAssociation(CHAPA)BostonIndicatorsProjectTheBostonFoundationSeptember2000

NewParadigmforHousinginGreaterBoston

Facedwithalimitedsupplyofexistinghousing,extremelylowvacancyrates,andadecadeofinadequatehousingproduction,theNewParadigmreportconcludedthatinthenextfiveyearsanadditional36,000housingunitswouldneedtobeconstructedintheBostonMetropolitanStatisticalArea(MSA),overandaboveexistingproductionlevels,inordertohelpmoderatefuturepriceandrentincreases.NewParadigmforHousing

inGreaterBoston

a“moralimperative”forallthosewhoneeddecenthousingataffordablepricesan“economicnecessity”inordertosustainBoston’srenaissanceeconomyHowHaveWeDone?HouseholdGrowthvs.NewHousing

The1990s:#ofNewHouseholds:129,265#ofNewHousingUnits:91,567Asaresult,housingvacancyratesinGreaterBostonplummetedVacancyRates19902000RentalHousing6.7%2.7%Owner-Occupied1.7%0.6%Source:U.S.CensusMostofthedeclineinvacancyratesoccurredafter1995,followingthe1991-92recessionRentPaidbyExistingTenants19952000%ChangeMedianRentPaid$744$1,035+39%Source:IREMDataMedianRentIncreaseforExistingTenantsvs.MedianRenterHouseholdIncomeIncrease+54%25%39%MedianHouseholdIncomeMonthlyRentMedianAdvertisedRents–1998-2001By2001,MedianAdvertisedRentforaTwo-BedroomApartmentinCityofBostonwas$1,700Between1998and2001,advertisedrentsincreasedbyasmuchas64%insurroundingcitiesandtownsIn12of19municipalitiessurroundingBoston,advertisedrentsincreasedbyatleast30percentbetween1998and2001

AdvertisedRentsforTwo-BedroomApartmentsinBoston-AreaCitiesandTownsCity/Town1998199920002001%Change1998-2001Winchester$1,050$1,300$1,350$1,75067%Revere$788$950$1,250$1,28863%Everett$775$863$1,000$1,20055%Medford$950$1,100$1,200$1,40047%Melrose$950$1,200$1,250$1,40047%Malden$850$1,000$1,200$1,25047%Quincy$850$1,100$1,350$1,25047%Waltham$975$1,100$1,250$1,35038%Cambridge$1,400$1,475$1,688$1,75025%Watertown$1,200$1,250$1,400$1,50025%Newton$1,300$1,400$1,500$1,60023%Chelsea$1,100$1,050N/A$1,35023%Boston$1,500$1,550$1,600$1,70013%Source:SundayeditionofTheBostonGlobe,theDepartmentofNeighborhoodDevelopment,CityofBostonAffordabilityofRentalHousingHousingis“Affordable”whenahouseholdmustpaynomorethan30%ofannualincomeforrentormortgageHouseholdsearningthemedianincomeofrenterscannowaffordtopaythemedianadvertisedrentforatwo-bedroomapartmentinonly2outof20townsandcitiesintheheartofGreaterBoston.MedianSellingPrice––1998-200119982001%ChangeMedianSellingPrice$198,500$298,350+50.3%By2001,householdsearningthemedianincomeintheircityortowncouldnotaffordthemedianpricedsingle-familyhousein112of161townsandcitiesintheregion.PercentChangeinMedianHomePrice(1998-2001)Vs.Estimated2001MedianHouseholdIncomeOnaverage,medianhousingpricesrosefastestinlowerincomemunicipalitiesBuildingPermitsIssuedinGreaterBoston,1980-2002(161Municipalities)25,00011,000FastestGrowingCities/Towns%ChangeinYearRoundHousingUnits(1990-2000)Hopkinton38.1%Bolton35.5%Berkley34.5%Franklin34.1%Kingston31.7%Mendon31.4%Salisbury29.9%Dunstable29.6%Boxborough28.9%Mansfield27.5%Southborough26.9%Rowley26.7%Westford26.4%Wilmington26.2%SlowestGrowingCities/Towns%ChangeinYearRoundHousingUnits(1990-2000)Watertown1.6%Framingham1.0%Wellesley0.7%Boston0.1%Medford0.1%Manchester0.0%Lynn-0.2%Arlington-0.2%Belmont-0.2%Essex-0.4%Melrose-0.7%Winthrop-0.8%Brockton-1.5%Lowell-2.2%SingleFamilyvs.Multi-FamilyHousingBuildingPermits––GreaterBostonNewParadigmReportProductionGoalsBostonMSA(127Municipalities)AnnualExpectedProjected5-YearRequirementAnnualAnnualProjectedNeededProductionShortfallAdditionalProductionMarketrate9,8607,1602,70013,500Subsidized4,3001,3003,00015,000Student1,500[1]1,5007,500TOTAL15,6608,4607,20036,000[1]3,450dormitoryunitswereidentifiedasplannedorunderconstructionatthetimetheParadigmReportwasreleased.Itwasexpectedthattheseunitswouldcounttowardthefive-year7,500unitproductiontarget.BuildingPermitsIssued––BostonMSA1968-2001CategoryTotalNeededperYear1995-99Avg.LevelofProduction1999200020012002eMarketRate9,8607,1607,4166,7666,0056,375Subsidized-newconstruction4,3001,3009311,4781,6511,213DormUnits1,500*256165704606TotalProductionLevelsincludingDormUnits15,6608,4608,6038,4098,3608,194HousingProductioninBostonMSAvs.NewParadigmGoalsCategory1999200020012002e%oftotalgoalmet55%54%53%52%%ofgoalmet(Market+Subsidized)59%58%54%54%%ofgoalmet(DormUnits)17%11%47%40%%ofgoalmet(Market)75%69%61%65%%ofgoalmet(Subsidized)22%34%38%28%HousingProductioninBostonMSAvs.NewParadigmGoalsAffordableHousing–GreaterBostonMostofthestate’ssubsidizedunitswereaddedbetween1965and1980,theheydayoffederallysupportedlowincomehousingproductionTotalsubsidizedunits:146,096Numberofunitsbuiltsince197263,761SubsidizedunitsbuiltundertheComprehensivepermit(40B)11,810AffordableHousing–GreaterBostonSubsidizedHousingrepresents9%oftotalstockofGreaterBostonHousingSince1969,Chapter40Bresponsiblefor15%ofnewaffordablehousingBoston,Cambridge,Lowell,Lynn,Brockton,andLawrenceareresponsibleforhalfofallsubsidizedhousinginGreaterBostonBostonalonerepresentsone-thirdCommunity2000CensusYearRoundUnitsPercentSubsidized2000BaseStateSubsidizedHousingInventory(40BUnits)Boston250,36719.63%49,146Chelsea12,31717.03%2,098Cambridge44,13815.60%6,884Lawrence25,54014.96%3,821Lowell39,38113.49%5,312Lynn34,56912.73%4,400Salem18,10312.50%2,262Brockton34,79412.24%4,258Malden23,56112.20%2,875Beverly16,15010.33%1,669Framingham26,58810.17%2,705Revere20,10210.07%2,025CommunitiesWiththeHighestPercentageofAffordableHousing,October2001Meetingthe10%AffordableHousingGoalOnly12communitiesoutoftheregion’s161haveachievedthe10%thresholdforaffordablehousing,upfrom8in1990.These12communities——mostlycities—contain1/3oftheregion’shousingsupplybutaccountfor60%ofthetotalassistedinventory.In1990,13communitiesinGreaterBostonhadnopubliclyassistedhousing.Nowthereisjust1.FundingAffordableHousingLowIncomeHousingTaxCredit(LIHTC)HOMEInvestmentsPartnership(HOME)ProgramHousingInnovationsFundHousingStabilizationFundFacilitiesConsolidationFundHousingDevelopmentSupportProgram,MassachusettsAffordableHousingTrustFundMassHousingMassachusettsHousingPartnershipFundMassDevelopmentCommunityEconomicDevelopmentAssistanceCorporationMassachusettsHousingInvestmentCorporationFundingAffordableHousing1999-2001150developmentsin36GreaterBostoncommunitiesreceivednearly$100,000,0003,400unitsofhousing,72%ofwhichareaffordable1,700additionalunitswerepreservedMultiplefundingsources(2ormore)wereidentifiedinnearly40%ofthesecasesLossofAffordableHousingNearly3,000rentalunitsin15GreaterBostoncommunitieshavebeenlosttothesubsidizedinventoryoverthepastdecadeastheresultofexpiring-userestrictionsMostoftheselossesoccurredpriorto1998.Butanadditional11,000unitsare“at-risk””betweennowand2005SubsidizedHousingProduction–1999-2001[1]PreservationOnlySubstantialRehabilitationNewConstructionAdaptiveReuseTotalTotalprojectswithstategrantsupportandtaxcredits40%18%42%100%ByDevelopmentEntity:ForProfit32%12%26%26%

NonProfit68%70%54%63%JointVenture0%17%20%12%

Total100%100%100%100%[1]ProgramsreportedincludeLIHTC,MassachusettsAffordableHousingTrustFund,HousingInnovationsFund(HIF),HousingStablizationFund,HOME,andFacilitiesConsolidationFund(FCF).HIFandCFCarelimitedtonon-profitdevelopers,skewingthedevelopmentintheirfavor.CommunityYear2000Units199740BUnitsCh40BUnits2002ChangeinNumberof40BHousingUnits1997-2001PercentIncrease1997-2001Plympton86504040N/ASherborn1,44903434N/ABoxborough1,90001212N/ABerkley1,870044N/APlainville3,0884012888220.0%Wilmington7,141159490331208.2%Shirley2,140245733137.5%Abington5,332112250138123.2%Hull4,6796815183122.1%Lakeville3,385484100.0%Marlborough14,8465921,18058899.3%Holliston4,861781537596.2%Weston3,796761265065.8%Danvers9,71227942814953.4%Ayer3,141771184153.2%CommunitiesDemonstratingProgressintheProvisionofAffordableHousing,1997-2001AllReportedChangesbyTypeofInitiativeUnitsEligibleforInclusiononSubsidizedHousingInventory(40BList)Comprehensivepermit31%Homeownerandrentalrehabprograms30%Allother13%Programstoqualifyexistingunits[1]

andfirsttimehomebuyerprograms10%DMH/DMRgrouphomes7%Specialpermits,rezoningandotherlocalinitiatives9%TOTAL100%[1]Thiscategoryincludesexistingunitsthatcommunitieshavebeenallowedtoqualifyonacase-by-casebasis.ToolsUsedtoConstructAffordableHousingExcludingDMH/DMRgrouphomesandunitsqualifiedbyrehaborfirst-timehomebuyerstatusUnitsEligibleforInclusiononSubsidizedHousingInventory(40BList)Comprehensivepermit77%Allother23%TOTAL100%Tools/ProgramsUsedtoCreateQualifiedAffordableHousinginCommunitieswithSubsidizedHousingBelowTenPercentSource:StateHousingInventory(1997;2002)supplementedbyDCHDandCHAPADHC