County Organizations Take Diverse, Incremental Solutions to Affordable Housing

Because the housing crisis impacts people with a wide range of incomes and circumstances, the initiatives to increase the supply and affordability of homes are extremely diverse.

 

They range from making housing affordable for working people with moderate and middle-level incomes to what is known as "deep affordability" for those with the lowest incomes, the homeless, the disabled, and seniors. Physically, projects range from individual houses or small multi-unit complexes to larger mixed-income developments. They include new construction, renovation of existing homes, and conversion and redevelopment of vacant structures such as schools, churches or mills for housing.

 

The sponsors, management and financing sources of affordable-housing initiatives are also varied. In addition to traditional government-funded public housing projects, they include profit-oriented developments that combine private investment capital with government subsidies or other grants. Others are projects whose sole purpose is to increase access to affordable housing, rather than making a profit.

 

This variety is evident throughout Berkshire County.

 

For example, one particularly visible project in Pittsfield is the upcoming conversion of offices in the vacant six-story former Berkshire Bank headquarters on Park Square and an adjacent building into 23 mixed-income apartments with street-level commercial space. The project is being undertaken by Allegrone Companies with a mix of private and public financing.

 

That project gained prominence in February when Gov. Maura Healy visited the site to announce a newly created statewide Commercial Conversion Tax Credit Initiative (CCTCI) to help transform empty or rundown commercial buildings into new homes. In addition to private financing, Allegrone is receiving $1.39 million in tax credits from that program, as well as local property-tax deferrals.

 

In addition to developers and others in the business community and local governments, in Berkshire County the non-profit sector and philanthropy also have an important role in affordable housing. These include local community-based organizations, and national and regional programs and foundations.

 

They often collaborate with private developers and builders, governments and other organizations. These organizations have focused on many types of housing. As part of their mission, most also offer additional support services such as referrals and counseling.

 

One major non-profit provider is Hearthway (formerly the Berkshire Housing Development Corp.). It was founded in 1971 and has developed or co-developed numerous housing facilities throughout the county. It currently manages 20 properties either as co-developer or under contract.

 

They include the 45-unit Silk Mill in Pittsfield, and the 43-unit Clark Biscuit mill in North Adams, among others. Hearthway is currently managing the upcoming opening of 56 mixed-income units in the Lofts at Eagle Mill in Lee, in partnership with Rees-Larkin Development LLC. This is the first phase of larger redevelopment of the former mill.

 

"We develop housing for people at different income levels," said Matt Kropke, director of real estate development at Hearthway.

 

He noted that in the past the organization worked on projects that included a mix of market-rate and designated affordable housing. While it will continue to develop housing for a mix of incomes, it does not plan on developing market-rate housing in the future.

 

"That was a mission-driven decision," he said. "We were founded to provide affordable housing. There's an increased need for that now, so that's where we are putting our focus."

 

Hearthway recently opened 37 housing units in Pittsfield to provide permanent affordable-homes and other support for people transitioning from homelessness. These are in two locations, including a section of Zion Lutheran Church on First St. and a newly-built complex at 11 West Housatonic St.

 

Kropke explained that rather than homeless shelters, they are long-term independent housing. "They also offer support services to assist residents with personal issues they might have, such as a disability."

 

Another prominent housing provider is Habitat for Humanity, an international organization with two affiliates in Berkshire County, including Central Berkshire Habitat for Humanity and Northern Berkshire Habitat for Humanity.

 

Habitat builds and sells affordable homes to income-eligible families. It focuses on home ownership as a way for occupants to gain financial security and benefit from their home as an asset.

 

"We have a two-fold goal for our housing: Reduce the cost of building, and make homes affordable to buyers," said Carolyn Valli, executive director of Central Berkshire Habitat.

 

She said Habitat is the major builder of affordable homes for purchase in the county. Valli added that Habitat also sees housing in a larger context of strengthening the overall community.

 

Habitat's homes are priced for buyers who earn enough to cover the responsibilities of home ownership while being in the range to qualify for designated affordable housing based on a percentage of the Area Median Income. Buyers are required to attend financial education classes, and also to perform volunteer work, including assisting with the building of their home.

 

Valli said the specific home prices and terms vary. 

 

"Part of it is based on the requirements of grants that fund a project," she said. "It's also about relationships with

the buyers. If they fall within the basic guidelines we work with them to ensure this is something they can afford."

 

Habitat also helps buyers find and obtain favorable financing and mortgage terms. 

 

"We have partnerships with lenders," she said. "The local banks in Berkshire County are great. They are very supportive of affordable housing, and work with us to offer discounted financing programs for our homebuyers."

 

Habitat reduces standard construction costs through a combination of donations and favorable terms from contractors and suppliers, volunteer labor, community contributions, grants, land donations and other methods. They also use modular housing and designs that reduce costs.

 

There are guidelines when a buyer sells a home. They are able to sell at a price that enables them to earn a return on their investment but within limits that are affordable to the next buyer.

 

Most of their homes are on multi-family sites, such as Gordon Deming Village in Pittsfield which contains six townhouses. They use a model similar to condominiums, in which the occupants own the physical home while the land is collectively owned and managed by all of the homeowners.

 

The Community Development Corporation of South Berkshire (CDCSB) is an organization whose dual mission is to create affordable housing and work with employers to create job opportunities in the southern section of the county.

 

Among its projects are several in Great Barrington, including the 49-unit Windrush Commons, the 45-unit Bently Apartments and 10-unit Hillside Ave. CDCSB has also taken innovative approaches. They recently converted the

former Thornewood Inn on Route 7 in Great Barrington into 15 affordable rental units.

 

In another project they saved six rental apartments that are considered Naturally Occurring Affordable Housing (NOAH) in the Sumner Block a mixed-use property on Main Street in downtown Great Barrington. Those apartments were threatened by a potential sale of the building. With the help of various partners and the town of Great Barrington, CDCSB acquired the building and provided protection, so they remain affordable.

 

It is also currently developing a unique project in Egremont. It is building two duplexes that will each contain two units. They will be sold to income-eligible owner/occupants, who will be able to offset mortgage costs by renting the additional unit at an affordable rate.

 

"This accomplishes two goals," said Jim Harwood, president of CDCSB. "It helps middle-income buyers who earn too much to qualify for affordable housing programs but can't afford to buy a home in this market. It also provides affordable rental units. We see this as a pilot project. If it's successful it can be replicated in other locations."

 

One of the pioneers in local affordable housing is Construct Inc., which was founded in the 1960s and is based in Great Barrington. Construct has purchased, rehabilitated and/or built more than 80 permanent, affordable housing options in Southern Berkshire County, plus 10 transitional housing bedrooms. Among its sites are 140 East Street Apartments and Forest Springs in Great Barrington, Prospect Street Duplexes in Lee, and Pinewoods in Stockbridge.

 

It is currently working to restore and convert an 11,000 square-foot Gilded Age mansion named Cassilis on 20 acres in New Marlborough into 11 units of affordable housing, plus two additional units in separate houses.

 

Construct is finalizing the budget and paperwork for subsidies, said Joey Lindstrom, executive director. "We hope to close in September and hand the keys over to the occupants a year later."

 

"We're extremely excited about this project," he added. "We're especially grateful for the community support this has received, especially the town of New Marlborough which worked hard to make this happen."

 

While these and other initiatives have increased the number of available units in the Berkshires, the county far from meeting the overall need for affordable housing, emphasized Lindstrom and other housing advocates.

 

Most affordable-housing projects have long waiting lists of months or years. Many people also fall through the cracks because they are either somewhat above or below the income requirements.

 

"I've been very impressed by the tremendous number of donors, elected officials, volunteers and staff who are committed to these goals," said Lindstrom. "But despite that much more resources, contributions and political will are needed."