BRA Response to the Pieces by Fox25-TV & Commonwealth Magazine
 
Who is Eligible for Affordable Housing Units through the BRA's Inclusionary Development Program?

* Anyone who meets the income guidelines for workforce housing may apply to enter the affordable housing lottery for an opportunity to purchase a unit.

* The affordable opportunities are advertised in multiple neighborhood newspapers. The opportunity must be advertised in the least likely place (e.g. a South Boston unit would need to be advertised in the Boston Banner.)

* The development team runs the lottery process and the Fair Housing Department oversees the lottery. The BRA does not have any involvement in the lottery.

* The BRA is responsible for income certifying applicants only after they have been chosen from the lottery. (In some cases if the lottery list is exhausted, then the unit is available on a first-come first-serve basis.)

To find out information regarding current affordable housing opportunities, please visit: BRA Affordable Housing Website.

Why are City Employees Eligible to Participate in this Program?

* While BRA employees are not eligible for these affordable housing units, City employees are eligible.

* The Fair Housing Dept. does not preclude City employees from applying for these units as that would be a fair housing issue.

* All of these individuals were certified as income eligible ¡V they qualify as meeting the income guidelines for workforce housing.

* We do require disclosure statements from City employees to ensure that there is no conflict of interest.

* There is no "inside" advantage for City employees in the lottery process. The Fair Housing Department does not market these housing opportunities on the City's external or internal website.

* Based on the information we were able to verify, we have determined that 8% of the 421 units in our affordable housing program are occupied by city employees.

* The City employees that obtained these units were from many different departments, cabinets and physical locations ¡V there was no pattern that suggested they had an "inside" opportunity to know when things were marketed.

* The workers that have purchased units are teachers, police officers, gravediggers, swimming instructors, etc.

Why City Employees Would Apply for these Units

* The City of Boston is the largest employer in the city. The average annual salary of a City of Boston employee is $65,000.

* The City has a residency requirement for its employees so they are very motivated to find housing opportunities within the city limits.

Is this information public?

* We do not maintain a list of City employees that occupy these units because City employees are not precluded from participating in the program.

* The public does have access to this information. Employees disclose their desire to purchase a unit to the City Clerk's office as part of our review process.

Background on the Inclusionary Development Program (IDP)

* The Mayor's Executive Order was put in place February of 2000. The program has created hundreds of workforce units without any taxpayer assistance.

* Private developers proposing residential projects with 10 or more units must comply with the Mayor's Executive Order and provide 13% of the units as affordable.

* Over time, the program has changed to better reflect the needs of Bostonians: In September of 2007, the program changed the affordability requirements. Currently the homeownership units are priced to be affordable to households earning 80% and 100% of the area median income; this translates into incomes of ($50,000 to $90,000) depending on household size.

* These affordable units are deed restricted and will always be available as affordable. Residents who decide to sell their unit can not make more than a 5% profit, as stated in the affordable housing covenant.

Why Does the BRA Impose Resale Fees on Certain Condo Developments?

* We use scarce BRA-owned land to create jobs, tax revenue and housing units for the city.

* Our goal is to underwrite some of that cost up front so that projects are feasible and redevelopment can occur on underutilized land.

* Without the public role in this process, Boston would not have benefited from the successful development of our neighborhoods.

* The fee structure is done in a way to not overburden the project in the beginning, rather to recapture the value over time.

* Much like other quasi-public agencies (Mass Turnpike, Massport, MBTA), we must implement ways to derive revenue.

* These fees help sustain our $50 million agency that provides comprehensive planning, economic development and job training services for the city of Boston at no cost to taxpayers.

* The resale fees are clearly stated up front in the purchase documents. No one is forced to buy these units.

Media Contacts: Susan Elsbree, 617.918.4426 or Jessica Shumaker, 617.918.4446.



Release Date: January 26, 2010