In 13 years, the Boston Redevelopment Authority spent $18 million on affordable housing, but should have collected $75 million, had they adhered to their governing regulations, according to the Boston Globe last year.
Following a review the BRA’s Inclusionary Development Fund, the mayor has asked the Department of Neighborhood Development to create a transparent process to distribute these funds instead of the BRA. The city Treasury will now be involved in the collection of affordable housing fees. The BRA will now work with the chief of housing to ensure the interests of affordable housing.
Fifteen percent of all new housing development is required to be below-market affordable housing. To waive this requirement, a developer may make a payment of $200,000 per unit plus one-half the difference between the market sale price and the affordable unit price.
According to “The Measure of Poverty: A Boston Indicators Project Special Report,” the official poverty threshold has not kept pace with this city’s high cost of living index. Therefore, when the BRA reported last month that 21.6 percent of Boston’s population lives in poverty, it should be remembered that poverty is defined as $11,670 for an individual. For the average Boston rent to be one-third of household expenses, an individual income of $44,000 annually is required.
