Mintz Levin and Affordable Housing Advocates Applaud SJC Decision Regarding Funding of Affordable Housing
7/23/2007
Affordable Housing Organizations Team up in Landmark 7- Year Battle over Popular "Chapter 40B" Subsidy Program
Boston, MA - July 23, 2007 - The Massachusetts Supreme Judicial Court agreed with affordable housing advocates in clearly validating the funding program that has been responsible for more production of affordable housing in Massachusetts than any other. That subsidy program, called the New England Fund of the Federal Home Loan Bank of Boston (NEF), was under attack by the town of Middleborough and opponents of the state's nearly 30-year old affordable housing program, "Chapter 40B." The Court released its decision on July 20.
The town of Middleborough contended that NEF did not qualify as a true government subsidy under Chapter 40B. In 2000 the town's zoning board rejected the New Bedford-based developer's plans for 10 single-family homes on a 4 acre parcel. That decision was appealed to the state's Housing Appeals Committee where it was overturned and the ZBA was ordered to issue a permit. In subsequent appeals to the Superior Court and the Appeals Court, the courts sided with the developer, and also confirmed the NEF as a valid Chapter 40B subsidy program, though the Appeals Court did so in narrow language that was of concern to affordable housing advocates. Had the Supreme Judicial Court struck down NEF, the status of the approximately 14,000 affordable units produced under that program would have been thrown into doubt, while eliminating the principal funding source for pending and future Chapter 40B projects.
Paul Wilson and Benjamin Tymann of Mintz Levin Cohn Ferris Glovsky and Popeo, P.C. co-authored and filed a brief supporting NEF and other Chapter 40B subsidy programs on behalf of Boston-based Citizens' Housing and Planning Association, MassHousing and the Massachusetts Housing Partnership. The firm represented the organizations pro bono.
"This is an important win for cities and towns across Massachusetts and for citizens -- teachers, police officers and others -- who are increasingly being priced out of their own communities because there simply is not enough affordable housing," said Paul Wilson, a Member in Mintz Levin's Litigation practice. "The decision by the Court to not allow municipalities to cut off a vital funding source for these types of projects means that more affordable housing projects can now move forward."
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