In response to the Massachusetts housing crisis, Newton for Everyone is a coalition of various activism groups that promote affordable and diverse housing opportunities in Newton. On the evening of January 13, the group hosted a hybrid discussion featuring Newton resident and housing developer Jason Korb speaking about challenges and potential solutions regarding affordable housing development in Newton. Over 200 people attended the event either online or in person.
The program was opened by Newton for Everyone leader Luke Mann-O’Halloran and Congressman Jake Auchincloss, who joined the event remotely from Washington, D.C. Congressman Auchincloss said that housing is one of his top priorities on the Hill, exemplified by last year’s Yes In My Backyard Act and People Over Parking Act.
“In my view, housing and the cost of housing is the number one economic challenge facing Massachusetts,” he said. “All of [my constituents] are feeling the burden of 40, 50, 60% of their share of wallet going to either rent or mortgage payments. It’s suffocating our economy here in the Bay State and depriving people of the opportunity for retirement security and of the ability to allow opportunities to unfold in their lives and to make the most of their career, along with their family.”
Korb is the principal of Capstone Communities LLC, a Cambridge-based developer and manager of mixed income, affordable, and historic apartment communities. During his presentation, What would it take to build 100% affordable housing in Newton?, he highlighted the numerous projects he and Capstone have finished throughout eastern Massachusetts, particularly in cities such as Brockton, Cambridge, and Bridgewater.
“We always say to ourselves, and we say to the public, that we will never build anything that we ourselves won’t live in; that’s our standard,” he said, “Whether it’s market-rate housing that we do on the side or affordable housing, it has to meet that standard.”
Affordable housing is determined by a number of factors, but primarily defined as housing (including rent and utilities) that costs no more than 30% of a household’s adjusted gross income. Additionally, the eligibility of housing programs is determined by a measure called the Area Median Income (AMI), which is the midpoint of a specific geographic area’s income distribution, as calculated on an annual basis by the Department of Housing and Urban Development (HUD).
Affordable housing is designed for households whose income is at or below 80% of AMI. Korb’s projects are all designed for households with incomes of 60%, 50%, or even 30% of AMI “because we use a subsidy called the Low-Income Housing Tax Credit (LIHTCs),” said Korb.
LIHTCs are one of many ways affordable housing is funded. In addition to tax credits, federal and state grants and private investment are necessary to fund projects; however, LIHTCs are particularly important in Massachusetts because, as Korb said, “[they have] been responsible for creating more affordable housing than any other program across the country.”
Korb noted that developers who utilize the LIHTC program must be ready for a 15-year ownership commitment, which thus holds developers directly responsible for the long-term well-being of the property and incentivizes developers to invest in quality upkeep and maintenance.
According to Korb, this long-term ownership fosters a sense of investment and encourages developers to make sustainable decisions regarding construction, maintenance, and tenant relations.
In Massachusetts, developers are also subject to a profit cap. Massachusetts Chapter 40B states that developers, regardless of for-profit or nonprofit status, must agree to restrict their profit to a maximum of 20% in for-sale development and 10% per year for rental developments. Korb noted that this law combats the notion that for-profit developers are solely driven to maximize profits and encourages others to be committed to providing affordable housing.
Korb said that since he is a Newton resident, he is not planning on pursuing any affordable housing projects in Newton. However, he pointed out four main ways Newton can achieve more affordable housing efforts: through zoning and design, funding, partnerships between public and private property, and public messaging.
Supportive zoning regulations – such as a “friendly” 40B Comprehensive Permit that allows for developers to get their permits in a “one-stop shop” – is not typically available for Newton projects, but “it really is the easiest approach if we want to build in a timely manner,” according to Korb. Also, he said that design standards that create a higher quality product to encourage community support would incentivize more development.
Funding for affordable housing Newton is available through the Newton Affordable Housing Trust – which requests Community Preservation Act Community Housing Funds for the preservation of the City’s existing affordable housing units and for the creation of new affordable units – and HUD’s HOME and Community Development Block Grant Programs.
Additionally, Korb said that reductions in local fees – as well as infrastructure improvements through initiatives like MassWorks, a grant program that provides capital funds for public infrastructure projects – “are vital for creating an environment conducive to such projects.”
Public-private partnerships lay the foundation for affordable housing projects. Utilizing abandoned or underutilized properties by turning them into housing units not only uses spaces more efficiently, but also increases the value of communities by reducing hazardous vacant buildings and increasing property tax receipts. To make these partnerships happen, Korb said that State and Federal organizations, as well as local municipalities and communities, ought to partner with investors.
Lastly, he stressed that public messaging is critical to get projects funded and to gather community support. He said that affordable housing plays an essential role in fostering diverse and inclusive communities; that everyone deserves access to safe housing; and that it is important for community members and municipalities to understand that perspective.
“A vacant building to me is affordable housing. What are the things that we can do to add value to our community? And how can we build community?” he said. “…We’re mission oriented, whether we’re for-profit or nonprofit. There’s a lot of benefits that we receive that are nonmonetary that are important to us.”
Bella Ishanyan is a Fig City News student reporter, Massachusetts High School Journalist of the Year, and a freshman at UMass Amherst.
