Senate bill seeks to preserve thousands of affordable-housing units
Panagiotakos-sponsored measure would affect hundreds of Lowell apartments
By FRANK TUTALO
Sun Statehouse Bureau
5/5/2001
BOSTON -- For the third time in as many years, the Senate yesterday passed a bill that proponents say will prevent nearly 18,000 affordable units across the state from falling off housing rolls in the next four years.
The bill gives communities the authority to put forth referendum questions asking voters whether local affordable housing developments should be kept that way for the life span of their mortgages, most of which carry 40-year terms. Under federal law, the vast majority of the complexes revert to market rate after 20 years.
"To me, it's an easy thing," said the bill's sponsor, Senate Housing and Urban Development Committee Chairman Steven Panagiotakos, D-Lowell. "Close to 18,000 units are in jeopardy. And this costs the state absolutely no money."
At present, developers can pay off their mortgages halfway through the term and then change the units to market-rate. Thus far, 4,300 units have been lost this way, Panagiotakos said.
In Lowell, nearly 2,000 units are in jeopardy, according to figures data by Panagiotakos.
During debate, Sen. Richard Tisei, R-Wakefield, aired concerns that the bill was a step back to revisiting rent control, a measure voters spoke out against some five years ago.
Panagiotakos tried to allay the concerns, noting that publicly subsidized developments are exempt from rent control anyway. What's more, he said in prepared remarks, the legislation "is not reinstitution of rent control and in no way runs counter" to it.
The bill now makes its way over to the House, where advocates will have to throw their political weight behind it in order to prevail.
Three years ago, then-Gov. Paul Cellucci vetoed the law. The following year and last year, it languished in the House.
"I'm hoping it's different this time," Panagiotakos said. "We wanted to get it over there early in the session. Now it's time for housing advocates and legislators time to stand up."
Years ago, the federal government gave developers the money to build these developments. A clause allowed prepayment after 20 years.
Several hundred units in Lowell would be affected. Those apartment complexes include:
Centennial Island Apartments, 118 units; First Lowell Rehab on Gorham Street, 46; Lower Belvidere Housing on Ash Street, 74 units; Father John's Building (The old Sun building), 84 units; Majestic Apartments on Merrimack Street, 34 units; Mazur Apartments on Fayette Street, 34 units; Southwick Apartments on Prescott Street, 28 units; Townhouse of Lowell on Middle Street, 96 units; Rogers Hall on Rogers Street, 61 units; Lord Manor on Pawtucket Street, 94 units; 50 Stackpole Street, 42 units; Market Mill on Market Street, 230 units; North Canal Apartments on Race Street, 267 units; The Wentworth on Shattuck Street, 40 units and Riverplace Towers, 449 units.
Frank Tutalo's e-mail address is ftutalo@lowellsun.com.
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