State spending for housing in Massachusetts includes state-supported public housing, private affordable housing development and rental voucher programs. The state public housing program is a key source of affordable housing for over 45,600 extremely low-income households, valued at $8 billion. Its preservation ensures a source of workforce housing for low-wage workers, who support an essential part of the state's economy. The Department of Housing and Community Development (DHCD) works to create and implement new opportunities to help with the preservation of the public housing portfolio, including using state capital to leverage outside funding for public housing preservation and continuing to strategically invest in sustainability and energy programs.
Additionally DHCD administers eight bond programs all of which are critical to the Department's mission. All DHCD bond programs have the capacity to produce or preserve affordable units, create housing opportunities for special populations and reduce homelessness. Some of the programs focus on helping people with disabilities move from nursing homes or other institutions into comfortable settings with appropriate services. Other programs create housing for veterans who have served in combat and are re-adjusting to civilian life.
The following graph reflects the Administration's estimated capital investment in affordable housing projects and programs over the next five years, as compared to fiscal years 2007 and 2012 affordable housing related spending. The decline in federal funding is due to the completion of ARRA funded projects. In FY12 and FY13, Governor Patrick has dedicated an additional $10 million expansion to housing infrastructure funding.
These programs in every way support the housing and economic development goals of the Patrick-Murray Administration:
Reduce homelessness. By investing in new units and existing vacant units, DHCD aims to provide more low income housing opportunities to reduce homelessness.
Create additional housing for special populations.. DHCD aims to support housing investments for veterans, homeless families, the elderly, individuals with disabilities and other priority individuals.
Revitalize neighborhoods. DHCD strengthens communities through targeted investments in Gateway communities.
Preserve existing housing. By investing in bringing existing vacant units back on line or preserving expiring use projects, the Commonwealth can preserve public housing and privately owned affordable units.
Governor Patrick inherited a neglected public housing system with a backlog of expired building systems and deferred maintenance, and he dramatically increased the Commonwealth's capital investment in public housing to begin to address this challenge.
In June 2010, DHCD initiated a formula funding program to ensure that capital funds awarded to state-aided public housing are distributed in an equitable, transparent and predictable manner. Now, every local housing authority (LHA) annually receives a share of available funds proportional to its condition-based need.
DHCD, with support from the LHAs, is currently in the process of federalizing 3,846 public housing units scattered across 48 sites and 19 LHAs at a cost of approximately $38 million in capital funds. The federalization of these units will transfer $100 million in capital liability to HUD and will increase operating funds to federalized units by at least 30%, as well as free up much needed state operating funds for the state's remaining public housing portfolio.
Initiated in 2008, the Sustainability & Energy Program has infused “green” approaches into capital planning and construction standards, helped housing authorities address energy planning and leveraged substantial outside resources from utility energy efficiency programs, government agencies and innovative financing programs.
DHCD has made significant strides in the capital planning process with technological improvements that include a comprehensive web-based system to target funding to greatest needs and measure the effectiveness of capital improvement projects.
Over $453 million in bond program funding has been awarded to 354 projects in 123 cities and towns across the Commonwealth.
Approximately $1.3 billion has been leveraged in other local, state and federal sources.
13,346 units of housing for individuals and families have been developed and/or preserved.
Over 1,070 homes have been modified to increase accessibility and improve safety for households with persons with disabilities.
17,014 jobs have been created for Massachusetts workers.
In FY12, the Patrick-Murray Administration announced an expansion of $10 million for rental housing projects which enabled the Commonwealth fund up to an estimated nine additional projects for families, veterans and elderly people.
In addition to the Commonwealth's yearly $170 million investment in housing, the Patrick-Murray Administration will provide a $10 million expansion for housing funding in FY13 to support new investments in the following:
Increase the Commonwealth's investment in Public Housing Energy and Water Savings Initiatives by $3 million. These initiatives produce energy, water and/or maintenance cost savings that allow LHAs to reduce operating subsidy or reallocate operating dollars to needed preventive maintenance. The $3 million expansion will:
Replace high cost, all-electric heating systems that are about to expire and install innovative air source heat pump or other high efficiency technology;
Make building envelopes more efficient by installing higher efficiency windows, insulation under replacement siding and energy-efficient roofs;
Address replacement of Federal Pacific electric panels that pose a safety hazard and waste electricity; and
Complete the conversion to low flow toilets in communities with high water and sewer costs or stressed septic systems.
Repair an additional 150-200 vacant public housing units with a $2 million investment in order for them to be brought back online and occupied.
Increase funding for the Housing Stabilization Fund by $3 million to create and/or preserve an additional 150 units of housing for veterans, homeless families, the elderly and other family households with incomes ranging from 30% to 80% of area median.
Invest an additional $2 million the Housing Innovations Fund (HIF) to create an additional 80 units of housing for special needs populations.