The City of Boston is seeking a third-party Fund Administrator with expertise in risk management, fundraising, fund management, and the underwriting of occupied multifamily developments to administer a new Housing Acquisition Fund (Fund). The Fund will pool City funds, grants, and below market debt to support the acquisition of occupied naturally occurring affordable housing for sale in Boston. It is anticipated that mission-driven developers will combine low-interest loans from the Housing Acquisition Fund with grant funds from the City of Boston’s Acquisition Opportunity Program to buy these buildings. Developers using this debt product will agree to non-displacement terms and to make the apartments deed restricted as affordable to income-eligible tenants in perpetuity.
We have identified five million dollars ($5,000,000) in City funds to capitalize this fund, with a goal of raising at least twenty-million dollars ($20,000,000) in additional grant funds, low-cost loans, and equity. The Acquisition Fund will have a city-wide focus and a collaborative governance structure, with the City playing an active role in helping to vet potential projects.