It is clear to many residents that Lowell needs a higher quantity and higher quality of affordable housing. Unfortunately, the current affordable housing law, commonly referred to as Chapter 40B, leaves Lowell and other urban neighborhoods out in the cold. Chapter 40B is specifically designed to benefit developers by focusing only on new construction and building high-priced, market-rate units in the suburbs. 40B completely ignores the many benefits of redevelopment, which costs up to 50% less than new construction.
Under current regulations, Chapter 40B allows developers to build projects that contain just 20%-25% affordable units. Not only is this percentage pathetically low, but the affordable units themselves are only barely affordable. The regulations only require 40B “affordable” units to be affordable to people making 80% of the Area Median Income (around $50,000 in Jamaica Plain). This means projects call units “affordable” when they are only affordable to people who make more than about $40,000. In exchange for building these 80% non-affordable projects, the state gives 40B developers hundreds of millions of your tax dollars annually. If the state were to simply take that tax money and spend it on truly affordable housing, two things would happen: 1) Massachusetts would have more affordable housing and 2) it would be real affordable housing, helping those who need it most.
The Department of Housing and Community Development (DHCD) is the sole agency that regulates Chapter 40B. DHCD Undersecretary Tina Brooks has been doing everything she can to use your tax dollars to subsidize non-affordable housing in the suburbs, while ignoring the benefits of redevelopment. This allows 40B developers to make the most profit possible. Every community in Massachusetts needs to share the responsibility for creating affordable housing, including the suburbs. However, the current system not only allows, but encourages predatory developers to ignore urban neighborhoods like Lowell and instead build high-priced, non-affordable housing in the suburbs, where they can make more money.
Lowell barely has room for new construction, most major housing projects in Lowell have been redevelopment of mills and other existing structures. Because of DHCD’s focus on new construction based on 40B, this means millions of dollars that should go to communities like Lowell will instead be funneled out to the suburbs. Repealing the 40B law will free up more than $300,000,000 in taxpayer money annually, that can be focused on redevelopment rather than new development, allowing urban neighborhoods with little land for new construction to get their fair share of affordable housing money.
The proof is in the pudding. Chapter 40B has been on the books for 40 years, and over that time, Massachusetts has fallen to 49th in housing affordability despite the benefits of a stable population and strong economy. The developer-welfare approach championed by Chapter 40B has had its chance and has failed unequivocally. It is time for the legislature to repeal the law and use our tax dollars to produce real affordable housing, while focusing on redevelopment and the needs of urban neighborhoods like JP.
Craig Chemaly
Slow Growth Initiative
Very well said. I have to say that that 40 years ago when the people who made the 40b rules were sincere in their efforts. But the 40b monster has out grown itself and isn't helping the people it was intended to help. A repeal or a radical reform is needed for 40b projects.
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