The City of Boston has acquired and preserved 16 affordable apartments at The Hillcrest in Roslindale. Mayor Michelle Wu made the official announcement, and was joined by residents and representatives from First Citizens Bank and Lavi Investment LLC.
The City of Boston Supports Major Apartment Preservation in Roslindale
The latest preservation effort at The Hillcrest aims to keep residents from being displaced. This effort is supported by the City’s Acquisition Opportunity Program (AOP) and the Boston Acquisition Fund (BAF).
Adding to the development at Roslindale, Mayor Wu shared that First Citizens Bank pledged to contribute $1 million to the Boston Acquisition Fund. The public-private loan helps acquire income-restricted housing and protect tenants from displacement.
The latest contribution from First Citizens Bank takes the fund’s total value from $13 million to $14 million.
Mayor Wu also underscored the partnership between public and private groups working to stabilize Boston’s housing market. As Boston takes consistent steps to curb housing costs, the latest collaboration is pivotal in ensuring the neighborhood stays strong, secure, and stable for residents, she stated.
Mayor Wu then expressed gratitude to Lavi Investment for taking ownership of the Roslindale-based property. She also thanked First Citizens Bank for its $1 million contribution to the Acquisition Fund.
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Importance of Hillcrest for Local Residents
The Hillcrest had not seen an ownership change in more than thirty years. The rents at the building at 237 Cummins Highway had also stayed below the neighborhood market rate. When it was listed for sale, the rent at the Roslindale property was around 35% below the neighborhood average, which could potentially increase.
By stepping in, the City of Boston and community partners have eliminated displacement by ensuring that long-time residents stay back at the preserved affordable units.
Sheila A. Dillon, Chief of Housing, reiterated the same by saying how longtime tenants can face uncertainties about their future once a property is listed for sale. With the building at 237 Cummins Highway getting backing from multiple stakeholders and funding from The Boston Acquisition Fund, tenants can stay back without fearing a rent hike or displacement.
The Massachusetts Housing Investment Corporation provided a $3.8 million below-market senior loan through the Boston Acquisition Fund. To further ensure that the existing below-market rents remain the same, Boston Housing Authority awarded an operating subsidy.
For its work preserving affordability at The Hillcrest, Lavi Investment received recognition from the City’s Acquisition Opportunity Program.
Responses from Key Stakeholders
Adler Bernadin, Founder of Lavi Investments, said, “I am extremely proud of this acquisition, as it ensures the preservation of affordable rents for the families currently residing in the building and for future families who need it most.”
“This achievement reflects Lavi Investment’s deep commitment to creating lasting, positive change in the communities we serve and underscores the strong partnership we have built with the City of Boston in advancing housing stability and equity,” Bernadin added.
State Representative Rob Consalvo thanked Mayor Wu and the City of Boston for their efforts in the district. Consalvo also stressed that the City’s continued preservation and protection of affordable housing will safeguard the stay of Boston’s residents in the future.
State Senator Michael Rush also reflected on the increasing need for affordable housing across the commonwealth and nation and expressed pride in living and representing a city that meets the needs of people. The State Senator then thanked Mayor Wu and the City of Boston for the preservation of The Hillcrest.
Boston City Councilor Enrique Pepén said, “With the housing crisis continuing to challenge families across Boston, I am grateful that we are stepping up with real solutions that keep our neighbors housed.”
“This preservation shows what is possible when the City and our partners work together with urgency and purpose. Thank you to the Acquisition Opportunity Program (AOP) and the Boston Acquisition Fund (BAF) for their leadership and commitment to protecting long-term affordability in our communities,” Pepén added.
Overview of Support Mechanisms
Mayor Wu and the Mayor’s Office of Housing launched BAF in 2024. The focus areas of the fund include stabilizing Boston housing for at-risk residents, permanently removing affordable housing from the speculative market, and supporting the new, local, and diverse developers.
Through a revolving loan model, BAF will also provide sustainable financing and strengthen the Acquisition Opportunity Program. BAF will offer low-interest loans, which, together with City grants and lender financing will support the acquisition of buildings. The revolving loan will facilitate reinvestment of repaid funds into future projects, thereby preserving more affordable units in Boston.
It should be noted that the Massachusetts Housing Investment Corporation administers BAF.
Fiona Hsu, Head of Community Development Finance for First Citizens, said, “First Citizens Bank is thrilled to support the Boston Acquisition Fund in its efforts to attain and preserve affordable housing units across the city.”
“Our contribution underscores our commitment to build lasting financial security and stability in the communities where we live and serve,” Hsu added.
With this step, First Citizens Bank becomes a new investor at BAF, which is also backed by the City of Boston and 10 of the city’s largest private employers and philanthropies. The bank joins them in BAF’s efforts to address Boston housing’s affordability and workforce preservation.
The 10 employers and philanthropies include Mass General Brigham, Barr Foundation, The Boston Foundation, Boston Children’s Hospital, Boston Medical Center, Beth Israel Deaconess Medical Center, Dana-Farber Cancer Institute, Eastern Bank Foundation, Massachusetts Housing Investment Corporation, and Tufts Medicine.
Background on Acquisition Opportunity Program (AOP)
Since its launch in 2016, AOP is aimed at protecting rental housing in Boston from market pressures by creating and preserving affordable housing. This program allows the Mayor’s Office of Housing to offer loans to developers for acquiring multi-family properties that are occupied.
AOP looks after the affordability of apartments over time and offers funding to projects with more income-restricted residences. Through these efforts, the program solves Boston’s displacement challenges, which generally occur through hiked rents and gentrification.
AOP also supports developers and helps them stand out by making them secure properties through timely funding, which might otherwise be lost to private investors.
Through the years, AOP has acquired and safeguarded nearly 1,394 housing units across Boston, eliminating displacement when properties changed hands. 789 of these homes have been preserved since the beginning of Mayor Wu’s administration.
Progressive Housing Initiatives Under Mayor Michelle Wu
Since the start of Mayor Wu’s first term, the City has either delivered or begun construction of over 18,000 new homes, including thousands of affordable homes. The City of Boston also started new policies for building new housing in an easy, fast, and less expensive way across neighborhoods.
The Housing Accelerator Fund, Welcome Home Boston, and the Housing with Public Assets initiative are some programs by the City that are aimed at creating housing on public land. The programs are also used to convert vacant buildings into homes and assist residents in building wealth and stability.
Mayor Wu has also led climate and health focused initiatives, which have often portrayed her as a national leader of green and energy-efficient housing.
About the Mayor’s Office of Housing
The Mission of the Mayor’s Office of Housing (MOH) is to strengthen the concept of vibrant, healthy, and welcoming communities for all. This can be possible through stable and green accessible housing and sustainable land usage.
MOH works toward the same through the creation and preservation of income-restricted housing that supports residents when they buy and maintain their homes. It also develops housing policies that encourage long-term stability and access by eliminating displacements and implementing housing solutions for the homeless.
The latest announcement marks a new step in Boston’s push to expand and preserve affordable housing across the city.
