Case study shows 40B affordability plummeting

After the disappointing news in late March that a Senate-led effort to improve affordability of 40B projects was defeated, the Coalition to Repeal 40B began a review of 40B's production history over the last four decades. The results paint a bleak picture for the Commonwealth and expose the real intent of 40B as it has been designed by Beacon Hill insiders.

After reviewing data from official state sources (The Record on 40B, June 2003; Update on 40B Housing Production, March 2007), it is obvious that 40B has been manipulated to allow for unprecedented market-rate growth that would otherwise be illegal while affordability was allowed to deteriorate to record low percentages. Sadly, with banks and lending organizations managing Chapter 40B production since 2000, the Commonwealth finds itself in the midst of a devastating housing meltdown with no safety net.

Chapter 40B Affordability by Decade
	1970s	1980s	1990s	2000s
% Affordable	98%	67%	52%	27%

40B built approximately 850 units in the 1970's. By the year 2000, 40B had constucted slightly more than 26,000 units of housing (approx. 73% of which were affordable). This all changed for Massachusetts, when a leading 40B developer helped to push through an allowance to have private bank and lending institutions manage 40B developments in 1999. As a result, the number of market rate homes in 40B projects skyrocketed while affordability plummeted.

The total number of units constructed by 40B developers from 2005 to 2009 is 38,095! 75% of those units are unaffordable, market-rate units. That is 12,000 more units than the entire 31 year history of Chapter 40B from inception to the year 2000.

The state projects that 40B developments in the pipeline have affordability components below the minimum standard originally created for the law. How is that possible? The new 40B regulations have eliminated the minimum percentage requirement (of 20% affordable for rentals/25% affordable for homeowners) entirely! If you think we have it bad now, just wait.

We remain concerned that 40B puts profits in front of people. Help us move Massachusetts forward, join us!.