$7 Million in ARPA Funding to Benefit First-time Homebuyers and Local Small Businesses

Today, Mayor Michelle Wu joined members of the Boston City Council, the Boston Housing Authority (BHA), the Mayor’s Office of Housing (MOH), and the Office of Economic Opportunity and Inclusion (OEOI), to announce the allocation of a $7 million investment of American Rescue Plan Act (ARPA) funding to bolster Boston’s neighborhoods in three ways: by (1) helping first time home buyers with down payment assistance, (2) acquiring of market-rate properties to grow affordable housing stock, and (3) supporting small businesses, including through the City’s SPACE Grant Program. Mayor Wu today filed an order with the Boston City Council to allocate the $7 million of ARPA funding. Of the total $558.7 million awarded to Boston since 2021, this $7 million represents the remaining amount for the City to allocate toward eligible recovery projects. These investments in affordable housing and local business build on Mayor Wu’s commitment to making Boston a home for everyone. 

“This $7 million investment prioritizes Boston’s families by building generational wealth through homeownership opportunities and helping our local entrepreneurs make their small business dreams become a reality,” said Mayor Michelle Wu. “In Boston, we have used ARPA funds to build innovative new programs that target key issues in our city such as housing, and we’re committed to using these remaining federal dollars to continue these successful initiatives. Congrats to Keanna Rice on her new home through the BHA First Home Program, and all of our city’s first time home buyers.”

"When we talk about investing in people and in our neighborhoods, this is it. The American Rescue Plan Act (ARPA) funds have allowed the Mayor and the Boston City Council to make transformative investments in housing, small businesses, green energy in affordable housing, culture and the arts, and support for vulnerable populations,” said Boston City Council President Ruthzee Louijeune. “This $7 million is a continuation of that work by further investing in affordable homeownership opportunities and supporting our small business owners. I am proud that the Council and the Mayor continue to collaborate to make sure these funds are helping us build a more prosperous and just city post-pandemic."

"As Chair of Boston City Council’s Committee on COVID-19 Recovery, I’m proud of our investments in support of additional investments in housing affordability and small business,” said City Councilor Sharon Durkan. “These $7M in investments continue Boston’s track record in leading the way in utilizing these once-in-a-generation resources to make transformative and sustainable investments to support the recovery and growth of our city – and because of the way we are continuing to steward these resources, Boston’s recovery has made our communities more stable and vibrant.”

Mayor Wu has allocated $3 million to the BHA First Home Program, to continue serving BHA families with down payment assistance through 2026. This funding will enable an estimated additional 57 BHA families to purchase homes in Boston. Through this program, the City provides eligible BHA families with enhanced down payment assistance of $75,000 towards the purchase of a home located in Boston and is available to all BHA residents who purchase a home in the city.

The BHA First Home Program launched in November 2022 with a $2 million investment from the city and has been an unprecedented success in helping BHA families become homeowners. To date it has helped over 50 BHA residents buy homes in Boston. This additional funding is critical in affording BHA tenants the opportunity to build wealth through homeownership. The demand for this program is high, and today’s announcement would enable the program to continue for two more years and double the number of families becoming homebuyers in the city of Boston.

“The First Home Program is a representation of everything we hope to achieve at the Boston Housing Authority, and the Mayor’s investment has allowed this program and BHA families to flourish beyond our wildest expectations,” said BHA Administrator Kenzie Bok. “This program has already enabled more than 50 BHA families to achieve homeownership and self sufficiency, establishing the intergenerational wealth that can lift families out of poverty and help close Boston's racial wealth gap. We are thrilled that the Mayor and City Councilors support doubling down on this successful program to help more of our families.”

“Buying a home has always been a goal for me and my family, having a home to call my own and securing generational wealth for the future. No matter your current financial status, buying a house in today's market is extremely difficult and costly, but this program gave me leverage,” said BHA First Home Program participant Keanna Rice.  “As I stand in my new home, I am filled with a sense of accomplishment and gratitude. I look forward to creating lasting memories in this space, building equity for my future, and establishing roots.”

An additional $3 million of this ARPA funding will go to further address the City’s need to prevent displacement and increase affordable housing opportunities through MOH’s Acquisition Opportunity Program. This program supports the acquisition of market-rate buildings by responsible, mission-oriented developers to stabilize tenancies and create long-term income restricted housing for low- and moderate-income renters. This new funding allocation will leverage approximately $9 million of private financing to support the acquisition of additional apartments buildings and stabilize the tenancies of households at risk of displacement. 

The Acquisition Opportunity Program (AOP) provides funding to nonprofit and for-profit organizations to acquire occupied, rental properties that are typically renting at below market rates. The residents of these properties are at risk of displacement if the property is sold and the units are then converted to condominiums or they are maintained as rental properties and the rent is increased. The City’s AOP has helped hundreds of properties remain affordable in almost every neighborhood of the City; from Chinatown to Mattapan, preventing displacement and promoting neighborhood stability.

"The City’s Acquisition Opportunity Program allows organizations to acquire occupied residential buildings removing them from the speculative market.  These acquisitions provide tenant stability and increase the City’s inventory of income restricted homes,” said the Chief of Housing Sheila A. Dillon. “The additional investment of ARPA funds will allow us to continue and expand the work of protecting and preserving affordable housing in the City, allowing residents to live and thrive in their communities.”

Small businesses, especially those industries most impacted by the COVID-19 pandemic, will receive $1 million of this ARPA investment. The funding will support the City’s SPACE Grant Program, providing grants to business owners seeking to occupy vacant storefronts. The City will soon announce the third and final round of the SPACE Grant program. In the first two rounds, the City helped 61 small businesses either open their first brick and mortar location or expand using $7.5 million in funding. 

“Thanks to the leadership of the Biden Harris Administration and our delegation in Congress, Mayor Wu and our team have been able to invest millions of dollars in Boston’s small businesses, helping to build wealth and establish vibrancy across all of our neighborhoods,” said Segun Idowu, Chief of Economic Opportunity and Inclusion. “Our team is grateful to Mayor Wu and the City Council for further investments in this transformative program, which has created new jobs and given dreams the space to grow.”

The SPACE Grant Program has been a key part of the city’s downtown recovery and support for local entrepreneurs throughout Boston’s neighborhoods. Businesses in the program have created nearly 600 new jobs, and a quarter of the grantees are now open and operating in the city, with the rest signing leases or in lease negotiations. This funding will help continue the success of this program, with an emphasis on filling vacant storefronts in Downtown Boston.