A significant portion of the meeting centered on the impact of restrictive deeds on generational wealth creation. Councilor Tanya Fernandes Anderson opened the discussion by highlighting concerns that while deed restrictions ensure long-term housing stability for low-income families, they may also hinder these families from fully capitalizing on their homes’ appreciated values. As of 2022, Boston had only 2,921 deed-restricted affordable homeownership units, which represent a mere 3% of the city’s total homeownership stock. These units are concentrated in neighborhoods like Roxbury, Dorchester, the South End, and Chinatown.

The council conducted extensive research into best practices from other cities, comparing Boston’s deed restrictions with those in New York City, Denver, Seattle, and San Francisco. It was noted that Boston’s previous 30-year deed restriction, with an option for a 20-year extension, was shorter than most other cities, where restrictions often last in perpetuity. In response to stakeholder engagement and research findings, the council decided to implement changes to the deed restriction. The new deed restriction will maintain a 30-year term without an extension option. Additionally, the appreciation cap was raised from 3% to 5% of the purchase price per year of ownership.

The council also discussed the transfer policies, allowing homeowners to transfer their units to family members without the requirement for those family members to meet income eligibility criteria. The definition of family was broadened to include those related by blood, marriage, or adoption, and the language of the deed restrictions was revised for clarity, making it more accessible to potential homeowners. Streamlined monitoring processes were discussed, including a shift from requiring annual proof of occupancy to using residential tax exemption filings as a basis for verifying occupancy.

Sheila Dillon, Chief of the Mayor’s Office of Housing, provided an overview of the city’s affordable homeownership programs, emphasizing the importance of housing stability for residents who face displacement due to rising rents. Dillon highlighted the disparity in the housing market, indicating that in 2023, the median sales price for homes in Boston was approximately $765,000, requiring an income of $223,000, which is unattainable for many households. In contrast, the median price for an income-restricted unit was around $269,000, achieved through substantial subsidies from the city and state.

The discussion also addressed the broader implications of affordable homeownership and the challenges associated with increasing access to it. Participants examined the complexities involved in funding affordable housing developments, particularly distinguishing between affordable rental units and affordable homeownership. The city invests more in creating affordable homeownership units compared to rental units due to the limited sources of funding available for the former. This disparity is characterized by a very healthy pipeline of affordable homeownership opportunities, thanks in part to funding from the American Rescue Plan Act (ARPA).

Concerns were raised about the potential return on investment for homeowners wishing to sell a deed-restricted home after a period of ownership. It was explained that homeowners would contact the relevant authorities to determine the maximum resale price, which would factor in a 5% appreciation on their purchase price along with any improvements made to the home. The process would also consider real estate broker fees.

It was noted that while homeownership is generally viewed as a means to build wealth, the existence of these restrictions creates a form of second-class homeownership for these communities. A statistic was cited indicating that Black homeownership in Boston stands at 26%, with only 3% of homes being owned by Black families, reflecting broader systemic issues and the historical context of housing policies.

Several speakers emphasized the need for community-driven solutions to address these systemic inequalities. The discussion included reflections on the historical context of zoning laws and their impact on homeownership opportunities for marginalized groups. One participant pointed out that triple deckers, a common housing type in Boston, are illegal in many neighborhoods due to zoning regulations designed to limit ownership opportunities for Black and Brown families.

The meeting also featured public testimony from residents who shared their experiences and perspectives on the housing crisis. Many emphasized the importance of preserving deed restrictions as a mechanism for ensuring affordable housing, while others highlighted the need for policies that balance affordability with the ability to build generational wealth.