Black and Buono Blog

If you are a realtor and you have a client that is in the beginning of their career, with a moderate amount of student loan debt, and negligible savings and they want to live in Boston, they can.

Boston is actually one of the best cities in the country to purchase a condo. How?

The answer is a little-known program that pairs a combination of public and private benefits to enable low- and middle- income first-time homebuyers to afford to purchase units in newly constructed luxury buildings. In Boston.

Many believe that affordable home programs are aimed only at those willing to live in government-run, government-built housing. Boston’s Inclusionary Development Program (IDP) is a 12-year-old initiative of Mayor Thomas M. Menino and the Boston Redevelopment Authority.

The program sets aside 13% of all units in newly constructed market-rate buildings with 10 or more units for individuals with incomes below $54,750 (80% of the area’s median income), $68,450 (100% of AMI), or $82,150 (120% of AMI) depending on the unit. It should be noted the program adjusts those income levels for households of up to eight people.

In addition to merely setting aside the units, the IDP restricts the sale price of the units. A typical one bedroom apartment, most with highly coveted addresses, high-end fixtures & appliances and a market value in excess of $300,000, cannot be sold by the developer for more than $167,900. Once the development project is complete a lottery is held for those who qualify.

There is a re-sale component of the program that increases your clients odds of getting one of these condos. The city’s development arm places deed restrictions on re-sale of the units that requires purchasers to only sell to other income-qualified individuals.

Real Estate professionals and attorneys who know how to file the necessary paperwork can help your clients with the purchase and sale of these condos in Boston.Your client can save tens of thousands of dollars by opting to purchase a condo in Boston versus relocating somewhere with a “lower” cost-of-living.

Boston has made great strides at identifying ways to help low- and middle- income individuals, oftentimes young professionals, afford to own property in the heart of the city. Contact Black and Buono for more information on this program or for real estate assistance.


Excerpts Boston.com