It is hard to build new homes for extremely low income families. But it is critical as a society that we help those most in need. It used to be that federal government stepped in the provide the massive amount of funding needed to do this at scale, but that tap turned off decades ago. Since then, there has been a patchwork of state and local efforts to build or buy housing for our most at need residents. And now Somerville is trying out a new way: get private developers to build it.
At first glance, that does not make much sense. Affordable homes are generally unprofitable for builders, and deeply affordable homes are deeply unprofitable. But in September, Somerville has added a powerful new tool to its kit: Tax Increment Financing (TIF). This funding system gives the builder a discount on their taxes after completion so that they have lowered costs while paying off the construction loan. Evidence from Portland, Oregon shows that TIF can boost housing production. Another advantage is that while tax payments eventually return to normal, developer concessions stick around.
In Assembly Square, the first proposed TIF project is a 318-home mixed-use building across the street from the Volo courts. Under our standard Inclusionary Zoning rules, 63 of those apartments would already be required to be Affordable. With TIF, the project deepens the affordability for several of those homes, making them accessible to much lower income families. To make this project happen quickly, the city is offering discount of up to 82% on taxes for 10 years, followed by a 10-year return to normal.
Rendering of planned 375 Harold Cohen Way
You may be concerned that this steep discount will cause a fiscal strain on the city, but city staff report that the yearly cost the city in services (mostly schooling) will be lower than even the heavily discounted revenue. And after 20 years, that will turn into a massive positive for the city.
2-3 homes is a pretty small number, but it will be a big deal for those who need it. And this project is just the first among dozens of sites that could benefit from TIF in Assembly and East Somerville. We hope that Somerville continues to use its power to create housing in the city — especially for those who need it most.
Urban Residential Use Tables
Somerville’s Planning Division is revising what uses are allowed in our Urban Residence (UR) zone, which consists of small- to medium-sized apartment buildings. This could mean allowing things like more coffee shops or dentist offices. Take the very short survey to give your thoughts.
Upcoming Events
Tuesday, November 17th: Historic Preservation Commission — Some homeowners want to add efficient heat pumps to their old homes. Home builders seek to replace buildings that happen to be 75 years old (and may get told no for “reasons”). Online at 6:45 pm
Thursday, November 19th: Planning Board — Agenda not yet set. Online at 6pm
Thursday, November 19th: Land Use Committee — Agenda not yet set. Online at 6pm
Wednesday, December 2nd: Somerville YIMBY Monthly Meeting — Strategy and planning meeting. Online via Zoom, 6-7 pm.
Friday, December 4th: Somerville YIMBY Social — Join us for on- and off-topic discussion, snacks, and drinks. In person at Remnant Brewing, Bow Market, 6-8 pm.
Tuesday, December 8th: Housing Medford (HoMe) Social — Local and regional housing advocates get together to talk shop. In person at the Great American Beer Hall, 142 Mystic Ave, Medford.
Recommend Reading
Lessons – and opportunities – from starter home ballot question loss: Question 7 narrowly failed. So what’s next for housing reform in MA?
Greater Boston Housing Report Card 2026: The Boston Foundation reviews another year of housing data. With a pretty mixed picture. Plus a special report on Social Housing.
How to renegotiate your rent in Denver: Denver has shown that sufficient housing supply does increase tenant leverage and therefore tenant rights.
Hexachusetts: Ever wanted to decide the zoning in Massachusetts? Now you can paint the map to your heart’s content!
How Do Building Codes Affect the Price of Housing?: Zoning dictates what can be built, but building codes influence the how and are vitally important.
Fiscal and classist motivations in early American zoning practice: the cases of two Boston suburbs, 1924–1945: Zoning has been political from the start. It has always been a method of controlling who lives where. So researchers sought to understand how the classist political discussions in Lexington and Arlington led to their early zonings.