What would it take to build
100% affordable housing in Newton?
Monday, January 13, 2025 at 7pm
On January 13, 2025, Newton for Everyone hosted a presentation titled "What would it take to build 100% affordable housing in Newton?" The event, which drew over 200 attendees both in person and via Zoom, featured opening remarks by Congressman Jake Auchincloss and a presentation by Jason Korb, a Newton native and developer specializing in affordable housing projects.
Luke Mann-O'Halloran, a leader of Newton for Everyone, welcomed attendees and shared a personal story about his daughter's best friend experiencing housing insecurity. Mann-O'Halloran's moving anecdote highlighted the urgent need for affordable housing in Newton, a city that has become increasingly unaffordable for many residents.
Congressman Auchincloss, who joined the event remotely from Washington, D.C., emphasized the importance of addressing the housing crisis in Massachusetts. He praised Newton for Everyone's efforts and expressed his commitment to supporting affordable housing initiatives at the federal level.
Jason Korb, the evening's main speaker, has a proven track record of developing affordable housing projects that not only provide much-needed homes but also enhance the character of the surrounding neighborhoods. His presentation focused on the challenges and potential solutions to building 100% affordable housing in Newton. He showcased several of his past projects, including the transformation of a historic school building in Bridgewater into affordable apartments, demonstrating how such developments can revitalize communities while preserving their history.
Korb illuminated some surprising aspects of the industry. Under Massachusetts Chapter 40B, which governs affordable housing development, developers are subject to a profit cap, regardless of whether they are for-profit or non-profit. This dispels the notion that for-profit developers are solely driven by maximizing profits, thus reinforcing their commitment to providing affordable housing.
Furthermore, Korb highlighted a key requirement for developers utilizing the low-income housing tax credit program: a 15-year ownership commitment. This extended ownership period incentivizes developers to invest in quality upkeep and maintenance, as they are directly responsible for the long-term well-being of the property and its residents.
Korb explained that this long-term ownership model fosters a sense of investment and accountability among developers. Knowing they will be involved with the property for a significant period encourages them to make sound decisions regarding construction, maintenance, and tenant relations. This ultimately benefits both the residents and the surrounding community, ensuring the long-term viability and sustainability of affordable housing projects.
Defining Affordable Housing
During his presentation, Korb provided a technical definition of affordable housing, explaining that it is typically defined as housing that costs no more than 30% of a household’s income. He also discussed the concept of area median income (AMI), which determines eligibility for affordable housing programs. His developments are affordable to individuals and families earning at or below 50% or 60% AMI.
Funding Affordable Housing
Korb outlined several funding mechanisms that he has used to finance his projects, including low-income housing tax credits (LIHTCs), federal and state grants, and private investment. He noted that LIHTCs have been particularly instrumental in supporting the development of affordable housing in Massachusetts.
Keys to Success
Korb highlighted the key ingredients for successful projects, emphasizing the delicate interplay of community engagement, municipal support, and financial feasibility. He stressed that striking a balance between these factors is crucial for navigating the complexities of affordable housing development.
Korb emphasized the importance of fostering a collaborative relationship with the community, acknowledging that concerns and anxieties often arise when new developments are proposed. He underscored the need for proactive engagement, transparency, and a willingness to compromise to address community concerns and build consensus.
Furthermore, Korb emphasized the critical role of local government in facilitating affordable housing development. Supportive zoning regulations, streamlined permitting processes, and access to funding are vital for creating an environment conducive to such projects. He also noted the importance of aligning project goals with the community's long-term vision and ensuring that developments integrate seamlessly into the existing urban fabric.
Finally, Korb stressed the need for sufficient scale to make affordable housing projects financially viable. Smaller projects often struggle to attract the necessary funding and resources, while larger developments can benefit from economies of scale and operational efficiencies. He also underscored the importance of a favorable macroeconomic environment in which market-rate developments do not outcompete or crowd out affordable housing initiatives.
The Importance of Affordable Housing
Korb passionately advocated for affordable housing, emphasizing its essential role in creating diverse, inclusive communities. He argued that everyone, regardless of income level, deserves access to safe, affordable housing.
Questions from the Audience
The event concluded with a lively Q&A session, during which attendees thoughtfully discussed the complexities of affordable housing development. Questions ranged from the root causes of the housing crisis to strategies for overcoming community opposition.
One participant inquired about the reasons behind Massachusetts' housing shortage despite its wealth. Korb pointed to restrictive zoning regulations as a major contributing factor hindering the construction of new housing. Another attendee raised concerns about community pushback against affordable housing projects. Korb stressed the importance of respectful engagement, active listening, and a willingness to compromise to address community concerns.
Several questions focused on the financial aspects of affordable housing development. One attendee asked about the feasibility of housing individuals with disabilities who rely on government assistance. Korb confirmed that such projects can accommodate individuals with extremely low incomes, highlighting the use of project-based vouchers to ensure affordability. Another participant inquired about the profit margins for for-profit developers. Korb clarified that both for-profit and non-profit developers are subject to a profit cap under Chapter 40B, ensuring affordability remains central to the project.
Overall, the Newton for Everyone event was a resounding success, providing attendees with valuable information about the affordable housing crisis and inspiring them to get involved in efforts to increase housing supply in Newton.