Home News Why the city helped fund a $47 million real estate deal in East Boston

Why the city helped fund a $47 million real estate deal in East Boston

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“As Boston continues to grow, we are moving urgently to ensure that all residents and families have access to safe and affordable housing.”

The city skyline is seen from Piers Park in East Boston.
Pat Greenhouse/Boston Globe

A community development organization funded by the City of Boston and local investors has purchased 36 apartments in East Boston to ensure they are affordable in perpetuity.

acquisition, announced It was created by Mayor Michelle Wu on Wednesday by a new entity known as the East Boston Neighborhood Trust.state’s first Mixed Income Neighborhood Trust (MINT) is a community development tool launched in 2019 that develops, owns and operates rental housing and retail portfolios to combat gentrification and maintain current rent prices.

The MINT will be managed by existing neighborhood organizations, and Boston’s new MINT will be managed by the East Boston Community Development Corporation.

A city deed limit ensures that a unit’s income is permanently limited.

The purchased building contains 114 units, according to the city. The deal was for $47 million, including his $12 million investment by the city. Boston used $9 million from the American Rescue Plan Act fund, $2 million from the Cares Act, and $1 million from the Inclusionary Development fund.

“As Boston continues to grow, we are working urgently to ensure that all residents and families have access to safe and affordable housing,” Wu said in a statement. “This East he’s acquisition of over 100 units in Boston is what’s possible by using every tool as a city and as partners across the sector to make Boston a city for everyone. It’s a great example of how it can be.”

According to the city, most units have three bedrooms, which is a key factor to accommodate neighborhood homes traditionally found to have the largest average household size in Boston.

114 units are restricted as household low-income units at various percentages of the regional median income (AMI). In total, according to the city, 28 units are limited with 50% AMI, 40 units are limited with 60% AMI, 26 units are limited with 80% AMI, and 20 units are limited with 100% AMI.

In addition to funds donated by the city, funding for this transaction was also provided by the Boston Impact Initiative, Hyams Foundation, Boston Foundation, Eastern Bank Foundation, City Life/Vida Urbana, and other individuals. East Boston CDC was also awarded a grant by the Barr Foundation to support the acquisition.

“East Boston CDC has been focused on acquiring multi-family homes because these homes are a source of affordable family housing and are close to home,” said Al Caldarelli, executive director of the East Boston CDC, in a statement. because it is the backbone of the “But a new model was needed to counteract the movement of speculative investors in the fast-paced market. It would not have been possible without the station’s unwavering support.”

The seller of the transaction was a joint venture between The Grossman Companies and Hodala Real Estate Group. The company purchased and refurbished properties in his 2014 and his 2015, he said, and found one buyer. Boston Business Journal.

“For years, families in East Boston have fought to stay home and live in peace without constant fear of deportation or deportation,” said co-executive of CityLife/Vida Urbana Mike Leyva. the director said in a statement. “Every family deserves affordable, safe, transit-friendly housing. Only thanks to the strength and tenacity of the locals who continue to fight for Boston for years to come.”

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