Aligning Policy and Housing Outcomes
Affordable Housing Trust
ASSOCIATES INC
Create an Affordable Housing Trust Fund
Case Study — Affordable Housing Trust, Somerville, MA
The Affordable Housing Trust in Somerville, Massachusetts is focused on
preserving and creating affordable rental and homeownership units, as
well as providing direct assistance to renters and homeowners. Funds
may be used for a variety of activities that support these goals, including
site development for new construction; rehabilitation subsidies and arson
prevention for existing developments; and assistance with security
deposits or down payments and closing costs for renters and
homebuyers. Trust documents also allow for funds to be used to
research other appropriate activities or to provide seed money for new
programs or organizations.
Funding for the Trust comes from a variety of sources, including linkage
fees and in lieu payments from the city’s inclusionary zoning programs,
as well as allocations from the city and from the federal Emergency
Shelter Grant program. At least 20 percent of funds must be used to serve
households with incomes below 50 percent of AMI, although the Trust
“encourages deeper affordability” and the use of funds to serve people
experiencing homelessness. Another 20 percent is reserved for
households at 51 to 80 percent of AMI, and 10 percent must go towards
those with incomes between 81 and 100 percent of AMI.
The Trust is governed by a nine-member Board of Trustees that includes
the Mayor, President of the City Council, and Executive Director of the
Somerville Housing Authority (or their designees), as well as six members
appointed by the Mayor or approved by the City Council including
representatives from the housing or real estate and banking or finance
sectors and at least one Somerville resident who is eligible for state or
federal public housing programs.
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Best Practice Guide — Municipal Affordable Housing Trusts
In 2013, the Massachusetts Housing Partnership (MHP) created a best
practices manual for establishing Municipal Affordable Housing Trusts.
Although the guide references specific Massachusetts State Statutes,
information around how a trust can help, the vision and role of the board
of trustees, and gaining support locally are transferable to other states.
Source: MHP Guidebook
Local Example — Affordable Housing Trust, Manchester, NH
The City of Manchester's Affordable Housing Trust Fund provides funds to
affordable housing developers and non-profit organizations for operating
expenses, rental subsidies, rehabilitation work, and new construction of
affordable housing. The use of these funds are somewhat flexible in that
there are no federal strings attached. The City allocates all these funds on
an annual basis as a part of the Community Improvement Program
process and on a project specific basis through out the year. Developers
are encouraged to contact the Department to discuss potential proposals.
The fund typically allocates less than $100,000 per year for housing
projects and programs.
