The panel discussing Chapter 40T
The Chapter 40T law, passed in 2009, has been directly or indirectly responsible for preserving more than 11,000 units of affordable housing in Massachusetts, according to a recently-released study funded by MassHousing and the Community Economic Development Assistance Corporation (CEDAC).
The report’s findings were presented June 3 at an event sponsored by CEDAC and the Citizens' Housing and Planning Association (CHAPA) and hosted by MassHousing. The forum featured a panel discussion with Massachusetts Undersecretary of Housing and Community Development Chrystal Kornegay, Madison Park Development Corporation CEO Jeanne Pinado, and Massachusetts Senior Action Council Executive Director Carolyn Villers.
"Preserving affordable housing is a critical part of a housing strategy across Massachusetts given the rising costs and the dwindling stock," said Kornegay. "We are looking forward to building on the success of the Chapter 40T law to help strengthen communities around the Commonwealth."
The study was conducted by Emily Achtenberg, a housing policy and development consultant.
"Chapter 40T has achieved significant benefits in preserving units and protecting tenants in properties that are subject to its jurisdiction," said Achtenberg. "Not a single property with remaining restrictions that has been offered for sale under 40T has been lost as affordable housing. Overall, fewer than 100 net affordable units (less than 1% of all units sold subject to 40T) have been or are slated to be lost through the 40T preservation sales process."
Chapman Arms in Cambridge was preserved using Chapter 40T
"The process to enact Chapter 40T took a long time and included active participation of many stakeholders. The final law has produced successful outcomes in preserving affordable housing units for low income families," said Roger Herzog, CEDAC's Executive Director. "As the study notes, it has provided two different pathways for sellers of multifamily properties, including properties in strong markets, to sell to affordable housing preservation buyers. Because of this landmark model law, thousands of units that were eligible to convert to market-rate housing have been maintained. But there are still thousands of additional units that are at risk."
The report notes that challenges remain to preserving affordable housing units in Massachusetts. The study estimates that some affordable units in subsidized mortgage properties have been lost through owner conversions to market-rate housing as mortgage and use restrictions expire. CEDAC data show more than 20,000 affordable apartments to be at risk by the end of the decade, including more than 5,000 maturing mortgage units at high risk.
(Some information for this post was contributed by CHAPA.)