Boston Fund to Acquire and Preserve Affordable Housing

Administered by the Massachusetts Housing Investment Corp., the fund will support the acquisition of 500 homes in the first five years.

By AHF Staff

A new fund will help mission-driven developers to purchase occupied multifamily housing developments in Boston with the goal of protecting residents from displacement and stabilizing communities affected by rising rents and speculative investment pressures.

“As Boston faces unprecedented housing challenges, the Boston Acquisition Fund (BAF) will help us safeguard affordable homes and keep residents rooted in their communities,” said mayor Michelle Wu. “This innovative solution prioritizes equity, ensuring that residents—especially communities of color—are not pushed out by rising costs or outside investors. We are grateful for the partners who have already committed to this critical effort and look forward to expanding our reach.”

The city and key Boston institutions and philanthropies are contributing to the fund, building on the Acquisition Opportunity Program (AOP), which has preserved over 1,000 affordable units in Boston to date and was supported by the American Rescue Plan Act.

BAF, which will be administered by the Massachusetts Housing Investment Corp. (MHIC), will offer sustainable financing through a revolving loan model. When developers identify buildings for sale, BAF will provide low-interest loans, complemented by city grants and lender financing, to support the acquisitions.

The fund is expected to contribute to the acquisition of 500 homes in its first five years, preventing the displacement of over 1,500 Boston residents.

BAF’s primary goals are to stabilize housing for at-risk individuals and families, permanently remove naturally occurring affordable housing from the speculative market, and promote the growth of new, local, and diverse development teams. MHIC will provide technical assistance and support to these developers who otherwise face barriers to accessing credit.

“The Boston Acquisition Fund is a testament to the city of Boston’s willingness to tackle affordable housing preservation and displacement head on and creatively,” said Moddie Turay, MHIC president and CEO. “These investments will directly help those who reside in these properties as well as the surrounding community, ensuring that they can thrive. We look forward to engaging fund stakeholders and growing this program to serve as a model for affordable housing preservation.”

The BAF has a financial goal of raising $25 million, with approximately $13 million already secured. The city of Boston has committed $5 million in grant funding, and an additional $8 million has been committed by the following organizations: