Worcester fund to provide developers up to $175K per unit to build affordable housing
Photo | Timothy Doyle
Worcester City Hall
The City of Worcester Executive Office of Economic Development is now accepting applications for its Affordable Housing Trust Fund to aid the development of affordable rental and first-time homeownership units.
Approved projects can receive up to $150,000 per eligible unit, or up to 25% of the development cost, whichever is less, with the possibility of a $25,000 bonus for each unit restricted to 30% or less of area median income, according to a Tuesday press release by the City of Worcester.
“At a time when our community is experiencing a severe housing crisis, it is exciting to see that the AHTF is encouraging developers to align their projects with key community needs, deep housing affordability, energy efficiency and climate mitigation,” District 5 City Councilor Etel Haxhiaj said in a statement to WBJ.
Among other criteria, AHTF-funded rental units must be affordable to households at or below 80% of AMI within a qualified census tract or at or below 60% of AMI outside of a qualified census tract, with a minimum term of affordability of 30 years, and 10% of project units as well as 100% of common areas must be fully wheelchair accessible.
A qualified census tract is one in which at least 50% of households have an income less than 60% of AMI, or which has a poverty rate of at least 25%.
“This is especially timely with the discussion of inclusionary zoning – which will require new multifamily developments to incorporate affordable housing units or pay into the trust fund – as well as the drastic rise in construction costs and interest rates for financing affordable housing developments,” the Worcester Regional Chamber of Commerce said in a prepared statement. “The added benefit is that new housing production creates jobs in the construction trades and activates local supply chains.”
The fund is overseen by a board of trustees consisting of nine members: from district 1, Lucelia DeJesus and Xaulanda Thorpe; district 2, Keith Krikorian; district 3, Gabriel Rodriguez and Johanna Hampton-Dance; district 4, Benetta Kuffour; district 5, Jackson Restrepo and Victor Agudelo, and ex-officio member James Brooks.
The Affordable Housing Trust Fund trustees will select awardees based on the project's eligibility and strength using a set scoring rubric.
The fund was established in 2021 by a city ordinance and was allocated from $15 million of the $146 million the City of Worcester received from the federal American Rescue Plan Act.
The City of Worcester will host a workshop for applicants interested in housing funding programs, including the Affordable Housing Trust Fund, at 5:30 p.m. Thursday, Oct. 13, in the Levi Lincoln chamber at City Hall.
“The cost of housing is rising across the country, and here in Worcester leaders and community partners are working together to help find solutions. The Affordable Housing Trust Fund, the first of its kind in our city, is one tool we will be using to help our residents,” Acting City Manager Eric Batista said in the press release.
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