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Expiring Use Crisis

The problem of rising rents is compounded by mortgage prepayments or project-based, subsidy contract non-renewals of thousands of affordable rental housing units built between the 1960s and 1980s. These units were built or purchased with mortgage contracts which guaranteed that the units remain affordable to low-income tenants until their terms came due. Recently, however, owners have been seizing the opportunity to pre-pay or allow subsidy contracts to expire, so that they might rent units at the higher market rates.

GBLS has identified some 6,500 low-income housing units in Boston that would be affected by this trend before the year 2005. The key to preserving units in developments which are at risk is to act before the mortgage prepayment or subsidy contract non-renewal occurs. Many tenants, however, are unaware of the risk they face and are thus powerless to address the situation. GBLS has developed an extensive list of all the at-risk developments in Boston and the expiration date of each development, and is applying its legal expertise to help tenants preserve affordability.

In recent years, GBLS has represented tenants in a number of expiring use/expiring Section 8 contract developments, defending tenants in evictions, negotiating with landlords, and providing legal assistance to tenants working to preserve their developments as permanently affordable before mortgage prepayment or Section 8 contract expiration. Recognized as a national leader in the fight to preserve these developments, GBLS has achieved consistent success negotiating with land owners and empowering tenants to advocate on their own behalf.

 

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