LIHC Preserves Affordability for Boston Community
- Jan 22, 2019
LIHC Investment Group announced that the U.S. Department of Housing and Urban Development (HUD) has approved its plan to keep a multifamily community in Boston affordable for the next 40 years.
Concord Houses, a 181-unit income-restricted building in the South End neighborhood, was in jeopardy of losing its affordable status after HUD subsidy provisions governing the property expired in 2017. With the new plan by LIHC, homes at the community will be reserved for individuals earning no more than 80 percent of the area median income. Additionally, the new HUD contract is renewable for a total of 40 years.
The community comprises two buildings located at 705-715 Tremont St. Of the 181 homes at the property, 171—or 95 percent of households—chose to sign a waiver to convert their Enhanced Vouchers (EVs) to a new project-based rental assistance contract to make the plan work.
The agreement also guarantees that current and future tenants pay no more than 30 percent of their income toward rent, which will help reduce the rent burden for 30 existing households at the property. The remaining 10 households will receive rent protections in the form of EVs administered by the Boston Housing Authority.
LIHC will undertake a $7 million repair and capital improvement campaign at the property, including a new entry system and security cameras, flooring and ceiling replacement, lighting upgrades in the building’s common areas and exterior work.
“This agreement is the culmination of a multi-year effort to establish a new HUD program that will protect current and future residents of Concord Houses while providing funds for repairs and upgrades throughout the property,” said Charlie Gendron, principal at LIHC Investment Group, in prepared remarks. “We appreciate the support we received from the tenants; Congress, especially the efforts of Sen. Susan Collins; HUD; the City of Boston; BHA; MAHT; and GBLS in our drive to preserve this property for future generations.”
Last fall, in a similar plan, LIHC entered into an agreement with the New York City Department of Housing Preservation and Development and New York State Homes and Community Renewal to preserve the affordability of 446 units at Lakeview Apartments in East Harlem.
Image courtesy of LIHC