$38 Million Funded to Preserve Affordable Housing in Worcester

BREAKING: The state’s development agency, MassDevelopment, has just announced a groundbreaking initiative to preserve 73 units of affordable apartments in Worcester with a substantial investment of $38 million. This urgent funding comes amid a growing housing crisis, with construction already underway and expected to be completed by Spring 2027.

This critical initiative was revealed on Wednesday, with MassDevelopment confirming the allocation of a $21.4 million tax-exempt bond to support the preservation effort. The apartments, located in the Piedmont neighborhood near downtown Worcester, are spread across 16 buildings and will undergo significant upgrades.

“This $21 million will go a long way in providing affordable housing in Worcester,” stated Mayor Joseph Petty. The funding will be managed by WCG Homes LLC, an affiliate of the community development corporation, Worcester Common Ground (WCG).

In addition to the bond, the project has received $16.5 million in federal low-income housing tax credits, bringing the total funding for redevelopment to $37.8 million. Renovations will include improved electrical, mechanical, and plumbing systems, as well as upgraded kitchens, bathrooms, and roof replacements.

The allocation of units addresses a pressing need, with 11 units set aside for households earning up to 30% of the area median income (AMI), 26 units for those earning up to 60% AMI, and 36 units for households earning up to 50% AMI. This initiative is a crucial step towards tackling the ongoing affordable housing crisis in the city.

City Manager Eric Batista expressed enthusiasm for the collaboration, emphasizing that Worcester’s affordable housing strategy prioritizes not only new construction but also the preservation of existing affordable units. “We appreciate the support of the Healey-Driscoll Administration, MassDevelopment, and Eastern Bank, and congratulate Worcester Common Ground on making this project a reality,” Batista said.

Worcester faces a significant housing challenge, needing to build over 12,000 new units in the next eight years to meet increasing demand, as highlighted in the city’s housing production plan. A recent analysis by RKG Associates revealed a critical shortage of housing options for both high and low-income residents.

“There aren’t enough homes for extremely low-income households, nor are there enough market-rate homes for higher-income households,” the production plan’s executive summary notes. This imbalance drives up costs and makes it increasingly difficult for middle and low-income residents to find affordable housing.

To combat this growing issue, the city’s production plan outlines specific goals for the next five years, aiming to enhance the housing landscape for all Worcester residents. The planning board and city council have adopted this plan and are awaiting approval from the Executive Office of Housing and Livable Communities.

As this project unfolds, it stands as a beacon of hope for many in Worcester, showcasing a collaborative effort to secure affordable living options in a challenging housing market. Stay tuned for further updates as construction progresses and more details emerge.