$150m loan fund aimed at preserving affordable rentals

By Jenifer B. McKim, Globe Staff

Governor Deval Patrick today unveiled a new $150 million loan fund to help people buy rental properties that are about to lose their affordable housing restrictions, which limit how much much rent tenants can be charged.

The fund, created with private and public funds, will be used to "support and secure" government-subsidized properties that have rent restrictions for low-income residents, most of whom are senior citizens and people with disabilities, according to the state.

Patrick talked about the fund today at a State House event with housing and community leaders that was scheduled to celebrate the passage of a new law that creates a regulatory framework to preserve affordable rents in so-called "expiring use" properties. The law gives the state Department of Housing and Community Development first option to buy thousands of government-subsidized properties that have rent restrictions. Over the next decade, about 41,000 units of affordable housing are scheduled to lose their rent restrictions, according to the nonprofit Citizens’ Housing and Planning Association.

The legislation deals with homes built by private companies with public subsidies. Rents on such properties are capped, but the restrictions can expire, typically when the mortgage is paid off. Under the new law, rent increases would be limited for three years once a property is no longer designated as affordable.

"Preserving affordable rental housing keeps our working families strong and our economy strong,'' Patrick said in a written statement today.