Affordable Housing in Boston

Boston City Council Candidate at Large Candidate Martin J. Keogh has proposed an initiative that he believes will create more housing for the city of Boston, and possibly keep city of Boston workers from leaving the city due to the lack and cost of housing. 

Currently, the city of Boston owns thousand of potentially build-able lots that could be used to create affordable and badly needed housing.   However, according to the Department of Neighborhood Development’s website, you cannot purchase the parcels without submitting a bid.   “Often times, it’s the contractor who ends up buying the parcel and building a beautiful home that is sold far above what the average person can afford” said Keogh. “In fact, the average family and city of Boston worker does not qualify for a home loan at all, even though they can afford to pay rent that exceeds an average mortgage payment.  There is something wrong with this picture.“

With a little bit of hard work, financial ingenuity and motivation to build homes for otherwise qualified borrowers, Keogh believes that the city of Boston can convert these vacant parcels into affordable homes at no cost to the tax-payers. “There is a greater long term benefit to the city of Boston because new homes increase the overall value of a neighborhood, as well as create a new tax revenue source” said Keogh. 

Under Keogh’s proposal, the city of Boston would: First, identify and expedite any necessary zoning relief to any available parcel of land where brand new single family homes could be built; Second, the city would then grant this land, with a “recapture” lien, to eligible and guideline qualified city of Boston candidates.  Third, the eligible candidates would be awarded the land through a lottery style process, along with full financing and approval to build a single family home on the parcel.  And, Fourth, these candidates would be required to live in the new home for at least ten years before the city’s “lien” on the land is forgiven.  The candidate would be allowed to sell the property at the end of the ten year ownership, but only at an annual increase of 5% over the original market value of the property (the property would have to be sold to another person who falls under certain income guidelines).  Through an agreement with local lenders/credit unions who do business with the city, upon eligibility to this program, candidates would automatically be granted a 50 year home/construction loan at minimal interest rates, but under the same terms and conditions of forfeiture as a conventional borrower.  The property can never be refinanced, rented or leased. 

“Building new homes on these empty parcels would yield great benefits, including increasing affordable home ownership, creating a strong and more vibrant neighborhood and converting non-taxable land back on the tax rolls” Keogh stated.  In addition, the city would realize more savings by reducing the cost of maintenance and cleanup of the lot from the city’s budget.  

Keogh cites a recent agreement with Suffolk Downs that could yield $52 million annually to the city as a revenue source to start-up this proposal. Keogh would also like to see the city of Boston Credit Union partner up with the city of Boston on this proposal, and offer this opportunity to city employees, who are required to live in the city under the Residency Statute, and who do not otherwise qualify for a mortgage.  “It makes financial sense if the city of Boston employee allows the Credit Union to deduct the mortgage payment from their weekly paycheck” Keogh said. Keogh would also like to see a partnership created with the city’s local labor unions whereby the homes would be constructed using Union labor and Boston residents.  “Ideally, I would like to keep the jobs and money flowing in our local economy” Keogh said.

As part of the proposal, Keogh would also like to identify, classify and expedite any zoning variance process on other parcels of land that could be used to build schools, neighborhood business districts and inner city parks.  “We have the land, we own it, so let’s put our minds together and do something that makes our neighborhoods more attractive to its residents” said Keogh