Affordable Housing Awards Bring More Homes to Springfield

On Monday, August 15, Governor Charlie Baker announced the Commonwealth’s latest endeavor to provide affordable housing to its communities in need, awarding over $90 million dollars in funding for 26 different affordable housing projects throughout the state.

The awards from the Department of Housing and Community Development include $31 million in state and federal low-income housing tax credits (which will generate over $218 million in equity for these projects), as well as over $59 million in housing subsidy funds (including federal HOME funds and state capital funds).

With these awards, the Commonwealth seeks to provide affordable housing opportunities, with specific focus on the elderly, disabled, and homeless. The 26 funded projects consist of development projects, renovations, and preservations of older buildings, including three preservation projects here in Springfield. In Springfield alone, these preservations will create 276 rental units, with 43 units reserved for families with household incomes less than 30% of the area median.

The Springfield housing projects sponsored by the grant include:

·         Henry Twiggs Phase II: 61 units of fully rehabilitated affordable housing, with 16 units reserved for households earning less than 30 percent of AMI, sponsored by Home City Housing

·         Maple Commons Apartments: 173 fully rehabilitated affordable housing units, with 18 units reserved for households earning less than 30 percent of AMI, sponsored by First Resource Companies.

·         St. James Commons Apartments: 42 affordable units for families, with 9 units reserved for families earning than 30 percent of AMI, sponsored by Valley Real Estate.

As of 2013, nearly 38% of Springfield residents live below the poverty line, and 5.8 in every thousand were homeless. According to a 2012 study, nearly half of all households in the city were considered cost-burdened, contributing more than 30% of their income to housing costs. Despite the fact that Springfield was once known as the “city of homes” only 29% of homes were designated as “affordable.”

A 5-year investment plan released by the Governor’s office shows plans in place to continue increasing housing production throughout the Commonwealth, including an 18% increase in funding for mixed-income housing. Though specific plans have not yet been released, it is our hope that the proposed changes to the local economy will revitalize the market and allow more people access to affordable housing.