Acquisition Opportunity Program
We give loans to help responsible investor-owners buy occupied, multi-family rental properties.
We protect the City’s rental housing stock from market forces by:
- creating affordable housing for Boston residents who can’t afford market-rate rents
- funding developments that have more restricted units, or have units restricted to lower incomes, and
- fighting the forces of gentrification. We work to make sure tenants’ apartments don’t become unaffordable over time.
We talked to the community, affordable housing developers, and nonprofits. We found that affordable housing developers can fall behind private investors in the housing market. Private investors often have easier access to capital and cash.
Our program offers a solution to this challenge. We give developers the opportunity to pre-qualify for a set amount of funding. These potential buyers can then become more competitive in the real estate market.
To pre-qualify for the program, development teams must show:
- they have the experience and finances to take part in a project, and
- have the experience to operate properties long-term.
- keep the tenancies of residents in good standing
- keep affordable rent levels for the units in the property for at least 50 years
- agree to set aside at least 40 percent of the units for low- and moderate-income families
- have investor-owned rental properties that are fully or partially occupied, and
- agree that no tenant in good standing will be displaced from their unit.
- We pick development teams through a competitive RFP process. View the RFP page.
- Teams receive certification from the City for the requested amount of their loan.
- Once pre-qualified, teams can begin looking for properties.
- When a prospective buyer finds a property, they can make an offer. They need to confirm that offer with the City, and close on the sale.
On May 24, 2016, Mayor Martin J. Walsh announced the City of Boston has earmarked $7.5 million of Inclusionary Development funds to support the acquisition of occupied rental housing.
Boston is committed to making our city a home for everyone, no matter their age, background or financial status. This $7.5 million investment is another leap towards creating affordable housing for all our residents. We are committed to growing our affordable housing stock, and programs like the Acquisition Opportunity Program ensures Boston residents will not be priced out of their homes and neighborhoods.