Based on data from EOHLC partner Housing Navigator, there are approximately 210,000 rental homes in Massachusetts limited to people based on their income. This includes affordable deed-restricted homes in private developments, state and federal public housing, as well as varying types of supportive housing. The cost to the resident household depends on the program: rent for subsidized units may be based on income (generally 30% of the household income) or rent may be fixed to a certain income standard.
The most commonly referenced measure of low-to-moderate-income units in municipalities across Massachusetts is the Subsidized Housing Inventory (SHI), established by Chapter 40B, the state’s comprehensive permit law. 40B enables housing developers to circumvent local zoning in cities and towns that do not have more than 10% SHI eligible units and that do not meet other thresholds for affordable housing. Eligible units must be part of a housing development that is subsidized by an approved subsidizing agency and contains affordable, income restricted housing units among other requirements. However, this measure can include, under certain circumstances, market rate units that are not “affordable” if a certain percentage of affordable housing units in a rental development otherwise meet SHI eligibility criteria. Another source of information that includes affordable housing units is provided by the Housing Navigator, which receives support from EOHLC and the other state subsidizing housing agencies. Housing Navigator provides listings of affordable, income restricted units for rent and also distinguishes units with a fixed rent vs rent based on individual household income.
Income restricted homes are created in a variety of ways: federal and state subsidies, federal and state low-income housing tax credits, municipal funding, and private sources. All these funding streams include varying restrictions on the length of time the unit maintains an affordability restriction. When those restrictions expire, homes can be sold, rented at market rates, unless the development is refinanced or resyndicated, which would prompt new affordability restrictions.
Units are generally targeted to households at a specific income level, such as 50% or 80% of Area Median income. In some cases, very low or extremely low-income households to use a mobile voucher to afford a unit restricted to 60-80% AMI. The voucher makes up the difference between 30% of the household income and the rent, up to a payment standard set for a geographical area. For the voucher program, this allows the vouchers to be used at lower cost than if the tenant were in the open market; and it effectively “deepens” the affordability of the low/moderate income development. Linking project-based vouchers with these development projects makes it possible to meet the EOHLC Qualified Allocation Plan goal of setting aside a minimum percentage of the units for households with incomes at or below 30% or area median income and to achieve the same outcomes for the other EOHLC-funded development programs.