Financial Sources for Low-Income Housing

Community Development Block Grant (CDBG)

CDBG is designed to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities for low- and moderate-income persons. The City of Newton’s CDBG funds are allocated among four categories:

  • Affordable housing

  • Human services

  • Architectural access

  • Neighborhood improvements

Community Preservation Act (CPA)

CPA is a unique program which allows communities to establish a local Community Preservation Fund to complete projects in community housing, historic preservation, open space protection, and outdoor recreation. Communities raise these funds by adopting an up to 3% surcharge on property taxes, which is matched annually from the statewide Community Preservation Trust Fund.

Newton passed the CPA in 2001 with a 1% local surcharge and established the Community Preservation Committee at the same time to oversee Newton’s program. The program is regulated by both state legislation (the Massachusetts Community Preservation Act) and Newton’s own locally established Community Preservation Ordinance and program guidelines.

The Massachusetts Rental Voucher Program (MRVP)

MRVP provides a permanent improvement in the lives of low-income families and individuals by offering both tenant- and project-based rental subsidies. There are two types of vouchers:

  1. The tenant-based voucher, which is known as Mobile, is assigned to the participant and is valid for any housing unit that meets the standards of the state sanitary code.

  2. Project-based vouchers are assigned to a specific housing unit or development. The owner rents these units to a program-eligible tenant, and project-based tenants who move forfeit the subsidy.

In both cases, a regional non-profit housing agency or a local housing authority administers the program locally.

HOME Investment Partnerships Program (HOME)

HOME was created to expand and improve the supply of decent, safe, and affordable housing for low- and moderate-income persons. As the lead entity for the WestMetro HOME Consortium, the City of Newton receives and administers HOME funds for the City and twelve other member communities: Bedford, Belmont, Brookline, Concord, Framingham, Lexington, Natick, Needham, Sudbury, Waltham, Watertown, and Wayland. Eligible uses of funds include:

  • Tenant-based rental assistance

  • Housing rehabilitation

  • Assistance to homebuyers

  • New construction of housing

  • Site acquisition, site improvements, demolition, relocation, and other necessary and reasonable activities related to the development of non-luxury housing

Housing Subsidy – Section 8 Voucher

Section 8 provides assistance to very low-income families to afford decent, safe, and sanitary housing. Housing can include single-family homes, townhouses, and apartments and is not limited to units located in subsidized housing projects.

Housing choice vouchers are administered locally by Public Housing Agencies (PHAs). A family that is issued a housing voucher is responsible for finding a suitable housing unit of the family’s choice where the owner agrees to rent under the program. A housing subsidy is paid to the landlord directly by the PHA on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program.

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