MassHousing Absconding with Public Funds

If the state won't fight for affordable housing, we will.

As reported by the Boston Globe on August 22, 2007- A state agency created to help foster affordable housing ignored its own guidelines by awarding more than $20 million in housing loans to the controversial Columbus Center luxury development.

A spokesman for MassHousing, a quasi-public agency, acknowledged that the money for the low-interest loans will come out of funds specifically set aside for affordable rental apartments, not condos in a high-end complex such as those planned above the Massachusetts Turnpike between Back Bay and the South End. "Columbus Center at this point is the one exception of a project that isn't rental and doesn't meet the guidelines," said Eric Gedstad, MassHousing's communication manager. "But it is still a worthy project, so we made a commitment to it."

State agencies claim to maintain robust oversight, yet there has been a steady stream of well-documented cases of Ch. 40B abuses. Where is the state oversight that should keep this from happening?

MassHousing was created to promote affordable housing. To have the arrogance to claim they have the right to go against public policy, awarding $20 million low-interest housing loans to a high-end market-rate condominium project from funds specifically set aside for supporting affordable housing projects indicates they feel they are above the law. "Reallocating" these funds is an abuse of authority and is emblematic of the corrupt politics that has disabled affordable housing efforts for such a long time.

Where is CHAPA? They are always quick to call 40B anti snob zoning and fight to allow developers to retain excess profits whenever residents challenge the statute. Now, they have no comment as MassHousing misappropriates funds to a high end condominium complex that were meant for affordable housing. Residents are seeing the true agenda of these agencies, that is, to assist developers in using 40B as a tool to extract huge profits at the expense of our communities and neighborhoods.

Where is the Department for Housing and Community Development and why have we not heard outrage from the Governor's office? Might the State be hoping this will pass quietly as citizens are returning from summer vacation?

Why are no legislators demanding that a hearing on this egregious violation be convened? Will MassHousing be called to account for their action? Will the Investigator General have to get involved since his office seems to be the only one that is working for the best interest of the citizens of the Commonwealth?

When will state officials realize that Massachusetts needs real affordable housing? Particularly helpful is the creation of affordable rental housing. There are affordable rental projects waiting for funding that will provide 100% affordable units to families earning 50% of the average mean income (AMI). But communities have been told by the state that such funding is not available. How is it that affordable housing funds are then made available for a developer building only 5% affordable units for families that earn 80% of the AMI? Is MassHousing interested in supporting its mission to provide affordable housing or are they simply interested in supporting opportunistic developers at the expense of taxpayers? The answer seems clear. These agencies have performed inefficiently and counterproductively for many years. It is time that the residents of the Commonwealth hold these agencies accountable.

-The Coalition to Repeal 40B