Acquisition Opportunity Property Program
Through our Acquisition Opportunity Program, we provide loans to help responsible investor-owners buy occupied, multi-family rental properties.
Benefits to Residents
The Acquisition Opportunity Program seeks to protect more of Boston’s rental housing stock from market forces.
The goal is to
- create affordable housing for Boston residents who cannot afford market rate rents.
- give funding preference to developments that have more restricted units or have units restricted to lower incomes.
- prevent displacement of tenants threatened by the forces of gentrification by ensuring that their apartments will not become unaffordable over the long term.
Benefits to Developers
In talks with the community, affordable housing developers, and nonprofits, we found affordable housing developers can fall behind private investors in the housing market. Private investors often have access to capital and cash that may not be as readily available to affordable housing developers.
The Acquisition Opportunity Program offers a solution to this challenge by offering developers the opportunity to pre-qualify for a set amount of funding. This pre-qualification will enable potential buyers to be more nimble and competitive in Boston’s fast-moving real estate market.
Development teams will pre-qualify for the program by demonstrating they have the experience and financial capacity to undertake an Acquisition Opportunity project, and have the management experience to operate the properties long-term.
The property owners in our program must
- maintain the tenancies of residents in good standing
- maintain 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
- agree that no tenant in good standing will be displaced from their unit.
How to apply
- Through a competitive RFP process, development teams will be selected. View the RFP page.
- They will receive certification from the City for the requested amount of their loan.
- Once pre-qualified, teams can begin looking for properties.
- When a property is identified, the prospective buyer can then make an offer, confirm that offer with the City, and close on the sale efficiently.
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,” said Mayor Walsh. “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.”