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Housing

The Department of Housing and Community Development (DHCD) administers eight capital programs, all of which are critical to the Department’s mission.  These programs have the capacity to produce or preserve affordable units, create housing opportunities for special populations and create housing for homeless individuals and families who currently live in shelters or overflow facilities.  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 can be used to create housing for veterans who have served in combat and are readjusting to civilian life.  Every capital program administered by DHCD can support the creation of additional units to serve homeless individuals and families.  The creation of permanent housing for this population is critically important for many reasons.  In addition to achieving social goals, it also relieves pressure on the Commonwealth’s operating accounts that support homeless shelters and overflow facilities.  DHCD capital programs provide for construction of new units as well as preservation of affordable family units that help to stabilize and advance neighborhood housing efforts, many of which are close to transit and within walking distance of retail and commercial opportunities.

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 2013 economic development related spending.

Administration Accomplishments to Date

Public Housing

• 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 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.
• DHCD, with support from the LHAs, has nearly completed the process of federalization 3,856 public housing units scattered across 48 sites and 19 LHAs at a cost of approximately $38 M in capital funds. The federalization of these units will transfer $100 M 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.
• The Vacant Unit Turnover Initiative, funded at $2 M each year, led to the rehabilitation and reoccupation of more than 400 units that had been sitting vacant for 60 days or more in the past 2 fiscal years.
• On January 1, 2013, DHCD implemented a new policy designed to hold housing authorities more accountable for the speed at which they reoccupy vacated public housing units, by assessing fees for unnecessarily slow turnovers.  Combined with $2 M in continued capital assistance for the most costly turnovers, the percent of units turned over in under 60 days increased by 15%.

Housing Development

• Over $518 M in bond program funding has been awarded to 392 projects in 129 cities and towns across the Commonwealth.
• 15,981 units of housing for individuals and families have been developed and/or preserved.
• Over 935 homes have been modified to increase accessibility/improve safety for households with persons with disabilities.
• 20,142 jobs have been created for Massachusetts workers. 
• Approximately $1.94 B has been leveraged in other local, state and federal sources.

FY14 Highlights

• The Commonwealth will repair, modernize and reoccupy an additional 175 to 225 vacant public housing units through a $4 M investment, with a special emphasis on certain long-term vacancies that are more costly to rehabilitate than past units served by this initiative.
• Continuing the Administration’s commitment to the sustainability of public housing, an investment of $3 M will be made at developments with the highest electricity, gas and water usage. Capital projects will include: more low-flow toilet replacements, HVAC system upgrades, building envelope upgrades, lighting, insulation and energy-efficient refrigerators.
• The health and safety of public housing residents will be ensured by investing $5 M in targeted risk-management projects such as:
  • Hazard mitigation at site and common areas;
  • Design of second elevators at select multi-story, single-elevator, elderly buildings; and
  • Installation of emergency power generators at select multi-story elderly buildings with elevators.
• The Commonwealth will continue to preserve public housing developments with the highest capital needs, while simultaneously leveraging millions of dollars in non-state funds through the High Leverage Asset Preservation Program (HILAPP). $1 M of pre-development funds will be awarded for major modernization projects that are beyond the reach of formula funding.
• A one-time, $10 M additional investment in Affordable Housing for Priority Populations projects will be funded in FY14.  This additional capital funding capacity will allow DHCD to create additional housing options for priority populations, including the chronically homeless, veterans and others in need of supportive housing.

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