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The Massachusetts Department of Housing and Community Development (DHCD) on Tuesday denied Walsh’s request for a waiver from annual caps that limit the number of subsidies the state can provide to any one community.
Massachusetts Governor Charlie Baker’s administration had sought to limit the maximum subsidy to $3.5 million per housing community, following a 2015 budget compromise that provided a $68 million subsidy to 54,000 Boston residents.
However, Walsh’s administration had sought to preserve $4.2 million in subsidies, arguing the city’s $1.5 billion-a-year housing program accounted for $18.1 million in expenses and had a $1.1 million surplus.
“Today’s action by the Department... is required by law. The monthly maximum for fiscal 2018 has already been waived for the 54,000 residents currently benefiting from the program,” said Joseph Kahn, a spokesman for the DHCD. “As DHCD has indicated before, the department’s reasoning for this decision is spelled out in the rules,” he added.
Walsh has argued the city’s housing program “continues to produce substantial annual surpluses” and has a “strong investment case” for a continuation.
The DHCD notified Walsh the state was rejecting its application in a letter that said the city has not met a threshold to demonstrate its program provides benefits to the general public.
Walsh’s office said on Wednesday the city would still pursue other options, including the case going to court. “The city will continue to advocate for the provision of critical affordable housing. The city has a long history of working with the federal government and the state to provide housing opportunities for thousands of vulnerable residents,” the mayor’s spokesman, Alex Kianercik, said.
The Massachusetts Municipal Association, whose members include many cities and towns with affordable housing, has long argued that applying the caps to Massachusetts as a whole will cause “potentially significant harm to thousands of Massachusetts residents and to our state’s housing market.”
The state Department of Housing and 0b46394aab
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