Director of Rental Business Development | MassHousing Olmsted Green Homeownership Units Built using the Workforce Housing Program Cynthia Lacasse Director of Rental Business Development | MassHousing NCSHA 2017

Workforce Housing Program The Case for Workforce Housing Workforce Housing Program The Workforce Housing (WFH) Program is designed to address the different challenges communities face: In Greater Boston, the goal is to secure affordability in markets that are already or are becoming out of reach for middle-income households. In places like Massachusetts’ “Gateway Cities” the goal is to be a catalyst to grow local economies and help attract middle-income households. Gateway Cities are defined as having a: Population between 35,000 and 250,000 Median households income below MA’s average Percentage of residents with a bachelor’s degree or above is below MA’s average

The Need for Workforce Housing The Case for Workforce Housing The Need for Workforce Housing In Metro Boston, middle-income households have decreased since 1990 Lower- and higher-income working households has grown dramatically over the past 25 years.

The Need for Workforce Housing The Case for Workforce Housing The Need for Workforce Housing Middle-income housing needs represent almost a quarter of the new workforce housing need over the next 15 years.

The Need for Workforce Housing The Case for Workforce Housing The Need for Workforce Housing Report: Boston Ranks No. 1 For City Income Inequality In 2013 Boston’s 95/20 ratio was 15.0, and it was then the third most unequal big U.S. city. From 2013 to 2014, Boston’s poor got poorer, and its rich got richer. There has been a reduction in middle-income Bostonians while lower-income and upper-income residents have grown dramatically

MassHousing’s Opportunity Fund Response: Workforce Housing MassHousing’s Opportunity Fund In March 2016, the MassHousing Board voted to approve and capitalize the Opportunity Fund with $160 million, to support the Agency’s efforts to confront the housing challenges facing the Commonwealth.

Workforce Housing Program Workforce Housing Initiative Workforce Housing Program MassHousing set aside $100 million from the Opportunity Fund for Workforce Housing, and the goals of the initiative include: Creating more housing options, especially for those not served by traditional affordable housing programs – younger professionals, teachers, healthcare workers, researchers Incentivizing production of new units of housing Addressing needs in Boston, Gateway Cities and wealthier suburbs

Workforce Housing Program Workforce Housing Initiative Workforce Housing Program Restricted to those earning 60% - 120% AMI, with rents 10% below market and higher than LIHTC rents New production (consideration for existing projects at risk of conversion to market) Soft debt in an amount up to $100,000 per workforce housing unit; $5 million project limit, with consideration for increases including in communities with inclusionary zoning to incentivize the creation of units above the minimum requirement Restrictions are in place for the longer of 30 years or the outstanding term of the loan Income recertification every other year Set-aside $25 million for transformative projects, i.e. leverages state-owned land, TOD, housing in neighborhoods of opportunity

Olmsted Green in Boston, MA Located in a southern neighborhood of Boston, Olmsted Green is a multi-phase Rental and Home Ownership community with access to public transportation. Formerly the site of a state hospital, the lot sat vacant for 30 years before the New Boston Fund and Lena Park Community Development Corporation (Boston’s oldest African American CDC) committed to redeveloping the site.

History of the Community Olmsted Green History of the Community 1884 – Boston State Hospital Opens 1978 – Hospital is Decommissioned & Closed 1993 – Master Plan for Site Developed 2003 – Master Plan Updated 2005 – Developer Acquires 38-Acres of Site 2008 – Construction Starts at Site 2011 – Construction is Stopped 2017 – Construction Resumes

Olmsted Green Revitalizing the Site The development of Olmsted Green created unprecedented opportunities in economic development, workforce housing, and neighborhood employment stabilization. The project has so far produced $100 million in investment, with additional phases expected to generate another $100 million. The newest phase of the development includes the construction of two rental three-story buildings, 22 rental townhouses, and 41 for-sale townhouses. There will be units affordable to households making <100% AMI, <90% AMI, <80% AMI, and <60% AMI.

Workforce Housing Units Olmsted Green Workforce Housing Units Workforce Housing Funds will be used for both the Rental and Home Ownership phases. Olmsted Green is the first development in which Workforce Housing Funds are used for Home Ownership units. Rental 100 units $4,000,000 Home Ownership 41 units $1,000,000 TOTAL WFH FUNDS $5,000,000

Olmsted Green | Home Ownership Phase Affordability / Sales Price $367,692 per-unit TDC BR Type Gross SF Total Unit Count Affordability / Sales Price 80% Price 100% Market 2BR 1,072 10 4 $210,000 $267,750 2 $304,408 1,172 20 5 $210,028 $267,728 $315,059 1,295 1 $211,650 $267,675 $319,975 1,256 3 $211,050 $267,732 $318,532 3BR 1,365 $236,700 $309,025 $337,356 Total Units: 41 11 - 19 Sources Construction Loan $8,334,126 City of Boston $2,250,000 MassHousing WFH Funds $1,000,000 Equity $1,406,000 Equity – Deferred Land $1,025,000 Equity – Deferred Fee $1,060,563 Total: $15,075,389 Uses Acquisition $1,025,000 Direct Construction $10,105,000 Contingency $492,750 General Development $1,992,376 Overhead and Fee $1,460,263 Total: $15,075,389

Olmsted Green | Home Ownership Phase $1,000,000 of MassHousing Workforce Housing Funds $45,454 per workforce unit Structured as a forgivable loan forgiven in increments of $45,454 as each workforce unit is sold to an eligible buyer 30-year deed restriction Buyer income qualification and resale process overseen by the City of Boston

Thank You! Questions? Comments? Cynthia Lacasse, MassHousing Director, Rental Business Development clacasse@masshousing.com