Today, Mayor Michelle Wu announced the launch of the Boston Acquisition Fund (BAF), an innovative program aimed at tackling the City’s housing affordability crisis, an important part in making Boston a home for everyone. The BAF, a public-private revolving loan fund, is designed to support mission-driven developers in purchasing occupied multi-family housing in the city. The purpose is to protect residents from displacement and stabilize communities affected by rising rents and speculative investment pressures, creating housing stability The City of Boston and key Boston institutions and philanthropies are contributing to the fund. This announcement builds the City’s Acquisition Opportunity Program, which the Mayor recently announced has already preserved over 1,000 affordable units in Boston to date, supporting individuals and families. Mayor Wu joined the Mayor’s Office of Housing and funding partners at City Hall today to make the announcement.
“As Boston faces unprecedented housing challenges, the Boston Acquisition Fund will help us safeguard affordable homes and keep residents rooted in their communities,” said Mayor Michelle Wu. “This innovative solution prioritizes equity, ensuring that residents—especially communities of color—are not pushed out by rising costs or outside investors. We are grateful for the partners who have already committed to this critical effort and look forward to expanding our reach.”
The Boston Acquisition Fund builds on the success of the City’s existing Acquisition Opportunity Program (AOP), which has been a critical tool in addressing housing affordability by preserving community stability across Boston. The newly launched Boston Acquisition Fund, which will be administered by the Massachusetts Housing Investment Corporation (MHIC), will strengthen the AOP’s mission by offering sustainable financing through a revolving loan model. When developers identify buildings for sale, BAF will provide low-interest loans, complemented by City grants and lender financing, to support these acquisitions. The revolving loan structure ensures that repaid funds are reinvested into future projects, preserving more affordable housing units in Boston. The fund will support the acquisition of 500 homes in its first five years, preventing the displacement of over 1,500 Boston residents.
The fund’s primary goals are to stabilize housing for at-risk individuals and families, permanently remove naturally occurring affordable housing from the speculative market, and promote the growth of new, local, and diverse development teams. MHIC will provide technical assistance and support to these developers who otherwise face barriers to accessing credit.
"This fund is an important step forward in our commitment to preserving affordable housing and stabilizing neighborhoods at risk of displacement,” said Sheila A. Dillon, Chief of Housing. “The success of our Acquisition Opportunity Program has demonstrated the power of collective investment in ensuring that Boston’s families can remain in their homes and communities. We are deeply grateful for the contributions our partners are making and urge other organizations to join us in expanding this critical work. Together, we can protect Boston’s housing, promote equity, and create a stronger, more inclusive city for everyone.”
The BAF has a financial goal of raising $25 million, with approximately $13 million already secured. The City of Boston has committed $5 million in grant funding, and an additional $8 million has been committed by the following organizations:
“The Boston Acquisition Fund is a testament to the City of Boston’s willingness to tackle affordable housing preservation and displacement head on and creatively,” said Moddie Turay, MHIC’s President and CEO. “These investments will directly help those who reside in these properties as well as the surrounding community, ensuring that they can thrive. We look forward to engaging Fund stakeholders and growing this program to serve as a model for affordable housing preservation.”
Since its launch in 2016, the AOP has provided over $90 million in funding, enabling the creation and preservation of more than 1,000 units of affordable housing. Through the AOP, non-profit and mission-driven organizations receive financial and technical assistance to acquire occupied rental properties that are renting at below-market rates. These properties are often at risk of being sold, converted into condominiums, or renovated with higher rents. Through the program, these properties are kept affordable, preventing displacement and fostering neighborhood stability.
“Stable, affordable housing is essential for good health, as poor housing conditions are closely linked to chronic issues such as cardiovascular disease, asthma, and long-term stress. Unfortunately, the housing crisis disproportionately impacts communities of color,” said Elsie Taveras, MD, MPH, Chief Community Health & Health Equity Officer at Mass General Brigham. “We are proud to support the Boston Acquisition Fund through our Community Health Impact Housing Funds and look forward to the positive impact this innovative program will have on community health—stabilizing housing for at-risk families, preventing displacement, and fostering healthier, more equitable communities.”
“We’re grateful to be one of the partners supporting Mayor Wu’s response to a critical challenge for Boston’s communities: rising housing costs and risk of displacement,” said Jim Canales, Barr Foundation President and Trustee. “Barr launched its Racial Wealth Equity Initiative in 2022 in response to the significant racial wealth gap in Greater Boston. Early this year, we made a $5 million program related investment in MHIC to support their work across the region to help communities build and maintain wealth - and we are happy that a portion of this can be deployed in alignment with the Boston effort.”
"If we are to truly address housing affordability in Boston's neighborhoods, no one entity can do it alone. We must be prepared to act collectively to protect affordable homes that market forces would otherwise acquire and make unaffordable" said Lee Pelton, President and CEO of the Boston Foundation. "The Boston Foundation is proud to partner with Mayor Wu and this remarkable group of organizations to preserve housing equity and affordability in the city."
“Boston Children’s Hospital is proud to collaborate with the Mayor’s Office of Housing, other hospitals, and investors in the launch of this new fund. This effort is an important step towards our shared priority in helping children and families to have healthier lives by maintaining their ability to have affordable, healthy homes,” says Shari Nethersole, MD, Boston Children’s Vice President for Community Health and Engagement.
“We know that stable housing is fundamental to maintaining good health. Dana-Farber Cancer Institute is proud to support Mayor Wu on this impactful program that will help secure affordable housing for Boston residents,” said Benjamin L. Ebert, MD, PhD, president and CEO, Dana-Farber Cancer Institute.
“Having access to affordable housing is a critical element in determining the overall health of our patients and ensuring we have a thriving workforce. We appreciate Mayor Wu’s continued focus on this important issue and are pleased to collaborate in an effort that will leverage our collective support to increase much needed housing supply in Boston.” – Juan Fernando Lopera, Chief Diversity, Equity and Inclusion Officer, Beth Israel Lahey Health
“Boston Medical Center (BMC) thanks Mayor Wu for leading this effort to promote affordable, accessible housing in our city,” said BMC President Anthony Hollenberg. “BMC first invested in housing in 2017 because we saw the clear connection between housing, health, and economic mobility in the communities we serve. This new housing fund will be transformative for many of our patients and will help our neighborhoods to thrive.”
“As a foundation deeply rooted in the values of economic inclusion and mobility, we are honored to support the City of Boston’s Acquisition Fund,” said Nancy Stager, President & CEO of Eastern Bank Foundation. “This initiative aligns with our mission to foster equity in housing, provide stability for families, and strengthen communities. Together, we are addressing one of the most pressing challenges facing Boston today: the urgent need for safe and affordable homes.”
The City of Boston continues to seek support for this program from businesses, foundations, and investors to join in the effort to ensure that all Boston residents have access to safe, affordable housing. For more information about the Boston Acquisition Fund please visit the website.