Overview
Preserving and stabilizing housing in the City of Boston.
The Boston Acquisition Fund provides low-interest loans to nonprofits, community land trusts, and socially-minded developers to acquire tenanted multi-family properties. The goal is to expand the City of Boston’s ability to prevent displacement, preserve affordability, and combat private investor competition in the housing market.
Impacts
Examples of housing types that could become permanently affordable through this revolving loan fund:
6 Apartments
Fenway
11 SRO Units
Allston
3 Family-sized
Apartments
Mattapan
IMPACT GOAL
700 units preserved, stabilizing housing for over 2,000 residents over 3-5 years.
THE CHALLENGE
NOAH at Risk: Naturally Occurring Affordable Housing (NOAH) is crucial to affordable housing in Massachusetts but is increasingly acquired by private investors, leading to:
- Displacement as properties are vacated and sold.
- Higher rents and loss of affordable units.
- Gentrification, disproportionately impacting low-income communities.
PROPOSED SOLUTION
The Boston Acquisition Fund:
- A revolving loan fund offering low-interest debt to support affordable housing preservation.
- Provides 100% financing for acquisitions, featuring:
- Below-market interest rates to reduce carrying costs.
- Fast and streamlined underwriting for quicker closings.
- Flexible terms to aid affordability planning.
FINANCING PRODUCTS
Senior Debt:
Loan: Up to $20M | Term: up to 20 years | Low Fixed/ rates
Collateral: First mortgage
Subordinate Debt:
Loan: Up to $5M | Term: 3-10 years | Low fixed rates
Collateral: Second mortgage, repaid via cash flow or capital events.
To apply for the Boston Acquisition Fund please contact Beth O’Donnell at odonnell@mhic.com.
Together, we can preserve affordable housing and protect communities from displacement.
Meet Our Experts
K. Beth O’Donnell joined MHIC in April 2023 and is responsible for managing MHIC's Community Investment team and overseeing the equity investment and lending businesses. Beth brings over 20 years of experience executing complex real estate strategies in the public, private, and nonprofit sectors.
MEET OUR EXPERTS
K. Beth O’Donnell joined MHIC in April 2023 and is responsible for managing MHIC's Community Investment team and overseeing the equity investment and lending businesses. Beth brings over 20 years of experience executing complex real estate strategies in the public, private, and nonprofit sectors.