Somerville proposes housing assistance stabilization fund to smooth rental-assistance contracts
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Summary
The Finance Committee reviewed a proposal to create a Housing Assistance Stabilization Fund under MGL c.40, §5B to hold multi-year rental-assistance money and allow continuity of landlord payments; no money was appropriated tonight and the committee recommended approval to the City Council.
The Somerville Finance Committee on Nov. 10 heard administration proposals to create a Housing Assistance Stabilization Fund under Massachusetts General Law chapter 40, section 5B.
Ellen Schachter, director of the Office of Housing Stability, told the committee the fund would allow the city to seed multi-year rental-assistance programs — such as municipal vouchers and other rental-assistance contracts — without forcing contracts to end at fiscal-year close. "A stabilization fund at this point would do a couple of things... it's going to ensure the longer term stability of these programs and also just to allow us to contract as needed over time," Schachter said.
Finance Director Ed Bean said one likely source would be 35% of the short-term rental community impact fee (a portion statutorily available for housing or infrastructure after legislative action); other sources could include repurposed dormant stabilization funds, free cash, grants or mitigation receipts. Bean said the administration intends to return with appropriation requests if and when funds are identified.
The committee laid the item on the table to recommend approval and signaled general support for creating a vehicle to stabilize housing assistance funding, while asking the administration to bring specific funding proposals and implementation details to the Council for appropriation votes.
Provenance: Item introduction and discussion at agenda item ID 25-1599.