B
oston is taking concrete steps to address its affordable housing shortage by proposing an "accelerator fund" that would provide low-cost financing for multifamily projects. The $110 million fund, a $10 million increase from the initial proposal, aims to support more condo developments and increase homeownership opportunities. To qualify, private market-rate developments must reserve at least 20% of units for income-restricted housing.

    The city is building on state initiatives, with MassHousing's "momentum fund" offering $50 million in financing. Developers can apply through MassHousing for municipal funding, and the city and state may collaborate to finance projects. Both funds are designed to be revolving, reinvesting collected incomes. One project has already accessed state financing in Boston's Allston neighborhood.

    Boston faces a significant financing gap that hinders its ability to address the housing crisis. With 30,000 approved multifamily units yet to be constructed, the city is working to bridge this gap and move forward with development projects. The City Council must still approve the accelerator fund, but opposition is unlikely.