Worcester trust fund supports affordable housing needs

The Worcester Affordable Housing Trust Fund awarded $1.25 million in October to eight housing projects that will create 59 affordable rental and homeownership units. The units represent a mix of housing types, from single-family to multi-unit.

The city’s affordable housing trust fund was created about three years ago with about $18 million from the American Rescue Plan Act, all of which has been allocated.

In November of 2022, city voters passed the Community Preservation Act, and the $1.25 million approved this fall is the first round using CPA funds.

The city also completed its first-ever housing production plan this year.

“We wanted to … do a deep dive on our demographics,” said Worcester Chief Development Officer Peter Dunn, “to make sure that we’re understanding what those housing needs are, and then being able to strategically prioritize the allocation of resources for the types of housing that are most in need.

“The key takeaway is that we certainly have a need for more units across the income spectrum, so we definitely need more affordable housing. We need more market-rate housing.
We also need more homeownership.”

The city decided to undertake a housing production plan for two reasons: It was also working on implementing a comprehensive long-range plan for the city, Worcester Now, which is focused on the built environment, zoning and land use. And the city was closing out American Rescue Plan Act funding and, with less resources, saw a need to be as strategic as possible in meeting housing needs.

Dunn said the city has been working closely with the Worcester Housing Authority, which received funding in this fall’s allocation, on thinking about what is next for public housing, since much of that stock was built in the 1950s and will need to be reconstructed.

“As they’re doing that, they’re using that land that they already control to add additional density and expand capacity, and they’re doing it as affordable housing at different levels of Area Median Income,” Dunn said. “So not just expanding public housing, but making sure that we’re having neighborhoods developed that have a mix of incomes.”

The recent trust fund award includes a Worcester Community Housing Resources project for four rented tiny homes, which Dunn said will be built on a surplus municipal property that used to be a parking lot. The agency will be partnering with Open Sky Community Services to provide wraparound services. The homes will be rented to households with less than 30% Area Median Income in order to reach folks who are currently or at risk of homelessness.

“They’re targeting seniors because one of the things that we had heard from seniors in terms of the shelters that exist, as well as some permanent supportive housing that is of greater density, was that having this kind of style that is more reminiscent of a single-family home provides more of that kind of independent style living, and in some cases, depending on their perspective, a better sense of dignity,” Dunn said.

Projects previously funded by the trust fund are at various stages of development, Dunn said, and the initial investment of $18.4 million is supporting 552 total units at a variety of income levels.

Based on demographic trends, community feedback, and the fact that much of the housing stock in the city is older, Dunn said applications for the housing trust fund have a minimum threshold for Americans with Disabilities Act accessibility of 10%.

The housing production plan, which the city was able to complete in part thanks to a grant through the state’s Housing Choice program, helped the city identify their specific needs and strategies.

“You see a lot of commonality certainly across the Commonwealth in what those strategies could be or what those recommendations are, and certainly the needs,” Dunn said. “But doing it at a municipal, community-based level is important because there are unique conditions or circumstances that exist.”