Last month, Mayor Michelle Wu announced upcoming steps to increase affordable housing across the City of Boston. Housing, and rent stabilization specifically, has been a part of Wu’s political stance since her time as a city councilor. Now, she has a multi-part plan to evaluate Boston’s policies, begin a rent stabilization advisory group, and carry out feasibility studies for a possible increase in the number of affordable units built.
“Cost of housing is among the biggest barriers to being able to stay and thrive in our city and is the number one concern I hear from our residents, day in and day out,” said Wu. Boston has the third highest rent prices in the United States, falling behind only New York and San Francisco. It was also found to be the fifth least affordable city for singles by RentHop, with studio apartments costing a median of $2,250 in rent per month.
One of the first steps in Wu’s plan is to look at the Inclusionary Development Policy (IDP), which requires market-rate housing developments to support affordability. They do this by including income-restricted units within new developments of ten or more total units, with a requirement that 13% be made affordable. Wu would like to see this become 20%, making it a major goal for the upcoming IDP study. Her team will also be looking at how to reduce the number of units needed to trigger this requirement.
The IDP was formed in 2000, and has since led to the construction of over 4,000 affordable or income-restricted housing units. It was last updated in 2019.
According to Sheila Dillon, chief of the Mayor’s Office of Housing, the rent stabilization advisory group members will be announced this month. Rent stabilization, or rent controlled housing, was dissolved in Boston in the 1990s. Wu and her advisory group aim to find a way to bring it back. “The Office of Housing is ready to implement these new policies to create additional affordable housing and increase tenant protections, ensuring that all Bostonians have a safe, affordable home,” said Dillon. Wu’s team will be submitting a home rule petition, the process by which a city gets permission from the state to change laws beyond its administrative authority.
Data from the 2020 US census shows that the rate of household growth in the 2010s is the lowest it has been in nearly 160 years. In 2017, nearly 1 in 3 adults were found to be living in “doubled-up” households, where housing is shared between adults who are not in a romantic partnership. Asian and Hispanic populations were found to have a lower rate of individual households than Black and White populations, despite being the fastest growing demographics within the U.S. Part of this trend is attributed to the younger age of the adults within the groups, as the household count amongst those under 35 is at its lowest point since the 1970s.
“With these actions, we’re taking our first major steps towards addressing Boston’s housing crisis,” said Wu. “Our city must build more affordable housing, leverage our wealth and resources to fight displacement, and protect tenants. Housing must be the foundation for our recovery, and this work begins immediately.” The revised home rule petition will be written to include increased resources for affordable housing, as well as provide greater tax relief for seniors who are longtime owners of their own home. It will also aim to launch a new real estate transfer fee, which would require fees for any development costing over $2 million to be put toward housing.
With these measures, Wu will also be looking into Boston’s Linkage fees, which are pooled funds from developers utilized for workforce training and housing development. Currently, the fee is $15.39 per square foot of space, thanks to former mayor Marty Walsh, who increased the fee prior to his resignation in March 2021. Wu’s team will be specifically looking at whether or not the square footage threshold can be reduced, and whether new lab developments would be in financial positions to pay more.
On the agenda as well is an audit of all city-owned developments to find potential space for more affordable housing units. Wu claims this will be completed within her first 100 days in office.
Property developers have reacted with a mix of caution and support, making it clear that Wu needs to carry out this plan carefully and with thorough research to reach a common ideal. “We…believe the mayor and her study groups should aggressively explore all ideas that reach our shared goal,” stated Gregory Vasil of the Greater Boston Real Estate Board, “including taking down barriers to new construction, directly empowering first-time home buyers and more.”
“We all recognize that and beyond these doors, you talk to people and they talk about the same thing: Housing is an issue. This is an opportunity to solve this problem,” said Vanessa Calderon of Inquilinos Boricuas en Accion, a South End-based community development corporation.
“The pandemic has shown everyone what we always knew,” said Dillon, “safe, affordable housing is critical to maintaining good health, economic stability, and is the cornerstone of stable neighborhoods.”
