Boston City Council hearing examines proposed $150 million homeownership development fund

BOSTON — November 13, 2024 — Boston City Council weighs $150 million development fund to dramatically expand affordable homeownership. The Committee on Ways and Means, chaired by Councilor Brian Worrell with co-sponsors Julia M. Mejia and Council President Ruthzee Louijeune in attendance, held a November 13 hearing on Docket No. 1002, a proposal to create a Boston Development Fund that would add $50 million to Mayor Michelle Wu's already-announced $100 million housing fund and dedicate a significant share to homeownership production. Researchers from Boston Indicators reported that buying even the least expensive tier of homes in greater Boston now requires an annual income of $160,000 with a 3.5 percent down payment, up from $99,000 in 2021, while just 16.8 percent of Latino households and 31 percent of Black households in Boston own their homes compared with 41 percent of white households. Hilary Pizer of the Massachusetts Affordable Homeownership Alliance told the council that last year only 3 percent of the city's subsidized housing production was homeownership versus 97 percent rental, and that only 3,000 affordable ownership units currently exist citywide with roughly 900 more in a 29,000-unit permitted pipeline. Developer Dariella Vionmaga described a per-unit cost model requiring roughly $150,000 in city subsidy and $200,000 from the state's Commonwealth Builder program to sell affordable condos at approximately $250,000 against a $600,000 construction cost.