The Broughton Road public housing community may soon undergo a major transformation, as the Housing Authority explores a $67 million redevelopment proposal in partnership with WinnDevelopments. The project aims to renovate the current 62-unit development, built in the 1950s, and add 35 new affordable housing units, creating what officials describe as a modern, mixed-income community with enhanced amenities and green spaces.
At an April 30 meeting, the proposed redevelopment sparked both excitement and concern among residents and Housing Authority commissioners. While the project promises improved living conditions and community enhancements, questions have been raised about the complex funding process, the potential for displacement and the financial impact on the Housing Authority and taxpayers.
WinnDevelopments ranked ‘highly advantageous’
MHA Executive Director Cathy Hoog and housing consultant Emily Achtenberg recently conducted a proposal evaluation, ranking Winn as “highly advantageous” based on its experience and capacity. Winn was the sole bidder to the request for proposals. With a portfolio of 100,000 units nationwide, including 50,000 affordable units, Hoog and Achtenberg said the company has a strong track record in public housing redevelopment.
“Winn is an experienced developer, owner and manager of multifamily rental housing,” Hoog and Achtenberg noted in their evaluation. “The company has substantial experience with similar public housing redevelopment in Massachusetts, Rhode Island, Maryland and elsewhere.”
Proposed site plan, housing mix
The plans designed by Copley Wolff Design Group, the architecture firm hired by Winn, include a new mixed-use community development featuring a range of housing options and amenities. The proposed site plan, as shown in Winn’s proposal, incorporates green spaces, pedestrian-friendly elements and a community pavilion.
The Broughton Road development proposal outlines plans for a 97-unit affordable and low-income housing complex, featuring a mix of one-bedroom, two-bedroom and three-bedroom apartments. The project will offer units at different affordability tiers. Out of the total 97 units:
— Thirty-five will be designated as Low Income Housing Tax Credit units at 60% of the Area Median Income. The AMI in Marblehead is $114,250 for a single household and $163,000 for a four-person household.
— Eighteen units will be allocated for LIHTC at 30% AMI.
— Six housing units will be eligible for subsidies under the Massachusetts Rental Voucher Program. These subsidies cover the rent up to the amount designated as the Fair Market Rent for the area, which the U.S. Housing and Urban Development reports is $1,960 per month for a one-bedroom apartment.
— Thirty-eight units will be eligible for subsidies under MRVP. These subsidies will cover the rent up to the amount designated as the FMR for the area at 110% — which the HUD reports is $2,156 per month for a one-bedroom apartment.
The average unit sizes are approximately 700 square feet for one-bedroom apartments, 900 square feet for two bedrooms and 1,100 square feet for three-bedroom apartments.
Financing concerns and funding options
“It’s a $67-million proposal, which is a lot of money,” Commissioner Pam Foye said at the April 30 meeting. “I didn’t understand the breakdown of that.”
Hoog said the redevelopment project will not rely on financial contributions from local resident taxpayers. Instead, the project will seek funding through various state grants, state-allocated tax credits, and other sources
“The public process for permitting and feedback will be sought and local residents’ feedback will help drive the process of design,” said Hoog. “Renovation projects of our existing sites rely on state funding and grants to complete those projects. We get approximately $500,000 per year to manage capital improvement needs [across the Housing Authority’s 307 units].”
Hogg is exploring various funding options to support the project’s development in collaboration with Winn. The funding process for such projects is complex and requires multiple applications to different sources, Hoog said.
“We have to be chosen for awards, so the design and process has to be very well done, very well thought out and include strong community backing,” she noted. “That’s a process that takes a significant amount of time.”
Moreover, the Housing Authority is considering applying for low-income housing tax credits as a major source of funding and plans to apply for the Public Housing Innovations grant through the Executive Office of Housing and Community Development. Winn would carry debt through a mortgage or loan, while the housing authority would apply for project-based vouchers to fund operation costs and ensure affordable rent payments for residents.
Hoog mentions that they will also “apply for various numerous grant opportunities/initiatives to help us fund the construction of environmentally astute designs,” including grants for green heating and cooling systems, removal of contaminated components, and high-efficiency equipment.
Hoog believes that the end result is worth the effort.
“It is a long complex process with complicated applications and legal requirements,” Hoog said, “but it is all worth it for the end product.”
As they continue to investigate the feasibility and design of the project, Hoog said they will apply for additional grants to support their consultants, including legal fees and development consultant fees.
Relocation concerns, project timeline
A significant concern is the comprehensive relocation strategy for existing residents. Broughton Road primarily accommodates families, and the latest occupancy data reveals that the Housing Authority serves 257 individuals in family housing developments, of which 120 are children under the age of 18. The redevelopment plan necessitates the temporary displacement of residents during construction, sparking apprehensions about the risk of permanent displacement and the disruption of established community connections. It’s not known where the residents will go during the project.
Select Board Chair Erin Noonan chairs the Housing Prodcution Planc Committee and serves on the Fair Housing Committee.
“They just got the RFP,” Noonan told the Current. “I hope they have to have a plan to minimize disruptions and keep people.”
While she hasn’t had time to digest all the propsoal’s details, Noonan said she trusts Hoog to properly execute displacement logistics.
“If this project moves forward, we will begin hosting community meetings to seek feedback from our residents and community stakeholders,” Hoog said. “It will be very important for MHA to ensure the community has information about our project that is accurate and informative so we will regularly host opportunities to share updates and answer questions.”
The projected timeline for the project has also drawn scrutiny. Once the project starts, construction is expected 18 months.
“The schedule, which sounds very long, but it actually makes sense for the type of development they’re doing, would use the remainder of this year for further development of the design and redevelopment concept and due diligence,” Achtenberg said. “[We would] spend the next year doing permitting and submit funding applications in 2025 and early 2026, get approvals later that year and close on the project at the end of 2026, followed by an 18-month construction period.”
The MHA commissioners OK’d Hoog and Achtenberg to proceed with negotiations with Winn to refine the proposal and establish terms for a potential Memorandum of Understanding. This MOU would be executed concurrently with the official designation of Winn as the project’s developer.
