Boston council approves loan fund to spur housing construction

The City Council today unanimously approved a $110-million fund to help finance new housing in the city through low-cost loans for new housing that meets certain city criteria for affordable units, the use of minority- and women-owned subcontractors and climate resiliency.

The measure now goes to Mayor Wu for her signature, which it will likely get since she proposed a version of the measure last year.

Under the proposal, as loans, with rates between 4% and 6%, are repaid, new loans would go out for additional projects.

Projects would have to have already been approved by the BPDA and zoning board and set aside at least 20% of their units as affordable - compared to the 17% normally required for new developments, according to Councilor Brian Worrell (Dorchester), who also proposed a version of the fund.

Developers would also get priority if their construction workforce matches the city's overall resident diversity, if they have a track record of hiring Boston residents, if their projects are particularly climate resilient, have community support and include ground-floor space for particular types of community ventures, such as day-care facilities, pharmacies and grocery stores.

The first project to benefit could be a currently stalled mixed-income building as part of the massive re-build of the Bunker Hill housing development in Charlestown.

Councilors approved the measure unanimously, but only after a contentious debate on a proposal by Councilor Julia Mejia (at large) to put off a vote for a week so she could hold a hearing to get more details on the proposal.

Mejia cautioned her fellow councilors should not try to make her out as an opponent, when she fully supports more housing, she just wants to get answers on questions such as how to ensure developers really do hire Boston residents. Referring specifically to Bunker Hill, she declared: "Charlestown knows I go hard for them. I don't want to be gaslit."

But Worrell said his committee had already held five public hearings on the proposal. And Councilor Gabriela Coletta Zapata (Charlestown, East Boston, North End) said Bunker Hill residents have waited more than long enough for progress on their project.

The current Bunker Hill buildings, the units in which will be replaced as new housing is built, "have outlived their purpose," residents have been engaged in efforts to get new housing for ten years even as they continue to live with cockroaches and broken stoves and it's time to get moving. "They deserve dignified housing and what they are living in right now is not dignified."

In the end, the council voted 7-2-1 against delaying a vote to allow another hearing. Councilors Erin Murphy (at large) and Ed Flynn (South Boston, South End, Chinatown, Downtown) voted for a delay - Flynn in part over outrage the city doesn't want to use the new fund to buy new elevators at the Ruth Barkley apartments in the South End. Mejia voted "present."