New city funds aimed at jump-starting affordable units

The city’s Department of Neighborhood Development (DND) will make more than $14 million in funds available to qualified housing projects this month as part of a push to create more affordable housing in Boston. The funds will be awarded via a pair of competitive Request for Proposals (RFP) that are now accessible on the city’s website.

Sheila Dillon, the city’s Chief of Housing, said this week that the city hopes that hundreds of new affordable units could be financed with the money. The city will prioritize projects that re-use city-owned land for housing geared towards seniors, veterans or formerly homeless people— and will look for proposals that have leveraged other funding sources.

Roughly half of this funding is sourced through the city’s Neighborhood Housing Trust, the repository of linkage money paid by commercial real estate projects. The other half is a mix of federal funds and recent proceeds from the city’s Inclusionary Development Program, which allows residential developers to “buy-out” of affordability requirements by paying into a city fund instead of housing lower-income residents.

“It will be many projects,” said Dillon this week. “This money will be able to jump start as many as 10 projects.”


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