The John D. and Catherine T. MacArthur Foundation will award Massachusetts $4.5 million to preserve the long-term affordability of existing privately owned multi-family rental housing, according to Gov. Deval Patrick.
The award is expected to leverage more than $150 million – primarily in private investment – for a statewide loan fund to preserve affordable rental homes for an estimated 9,000 families, the governor’s office said in a statement.
Massachusetts is the fifth-most expensive rental housing market in the nation, a problem exacerbated by the loss of unsubsidized rental housing due to foreclosures.
"In these challenging times, we must use every available resource to preserve affordable rental housing for hard-working residents throughout Massachusetts," said Governor Patrick. "We are grateful to the MacArthur Foundation for helping us in our ongoing efforts to ensure long-term, stable housing opportunities for wage earners on all income levels."
"For many years, the goal of home ownership in the U.S. has been emphasized and as a country we lost sight of the value of rental housing in a balanced national housing policy," said MacArthur President Jonathan Fanton. "We now have an opportunity to reset the policy agenda, restore rental housing to its proper place, and reshape the policy environment so that it both encourages rental housing preservation and makes it easier to do. State and local governments are at the forefront of this effort, showcasing innovation and trying fresh approaches."
A $1 million grant will go to the Community Economic Development Assistance Corporation (CEDAC) to support an interagency working group to coordinate local, state and federal housing preservation activities, and establish an early warning system to identify properties that are at risk of market rate conversion.
The MacArthur Foundation will also target $3.5 million in program related investments, or low-cost loans, to support a $150 million Massachusetts Preservation Loan Fund for predevelopment and acquisition financing for preservation projects.
CEDAC will partner with the Massachusetts Housing Investment Corporation to create the loan fund.
The MacArthur Foundation’s announcement is part of a $32.5 million nationwide award to a total of 12 states and cities nationwide. In addition to Massachusetts, the states include Iowa, Florida, Washington, Vermont, Pennsylvania, Oregon, Ohio, Minnesota, and Maryland, as well as the cities of Denver and Los Angeles.
