Worcester Business Journal

18 Worcester Business Journal | November 8, 2021 | wbjournal.com A MAJOR ANNIVERSARY... A NEW BUILDING... A MAJOR COMPANY MILESTONE Can we create a CUSTOM magazine for you? Whether it's the celebration of a major anniversary or the opening of a new headquarters, Worcester Business Journal's Custom Publishing Division can help you create a custom magazine for your business. Our division's top flight team of writers and designers can help you tell your story – and make your business look great! Based on our unique publishing model, it's surprisingly affordable. An advertising supplement to the Worcester Business Journal 25 Years in Service to the Community www.notredamehealthcare.org Making a Difference for 150 Years An advertising supplement to the Worcester Business Journal A T T L E B O R O N O R W O O D S T U R B R I D G E S W A N S E A 2 0 1 9 H O L I D A Y G I F T G U I D E Holiday Cheer Call WBJ Custom Corporate Project Director Christine Juetten at 508-755-8004 ext. 270. Worcester Business Journal WBJ Custom Publishing Division F O C U S B A N K I N G & F I N A N C E "At a certain point, if the rents aren't high enough, the developer doesn't think that the effort and the risk [are] worth the reward," said Botwinik. "Instead of trying to build a project, if somebody wanted to get a return on their capital, they could go buy an existing building … e incentive might not be there to get the housing created – or any housing created." Botwinik said other ways make it easier for investors to build, like limiting parking requirements for projects near public transportation to cut construction costs so developers will be more open to affordable units. Besides developers, it's mainly up to nonprofits to get deeply affordable housing built, but the region's hot real estate market is making that an even greater challenge. Howarth said he receives roughly two calls a week from developers asking if WHCR is willing to sell any of its properties. Acquiring new sites on which to construct affordable housing is getting harder. "We're increasingly dependent on institutional sellers or government sellers or on receiverships to afford sites for affordable housing," he said. Banks, once anxious to get rid of code-violating buildings and hand them over to nonprofits at a deflated price, are now holding onto these properties because of their rising value. Instead, banks will oen pay the residents to leave so the building is unoccupied and thus not subject to code inspections, said Howarth. Finding a healthy balance Not every Central Massachusetts community is starving for affordable housing. With 1,360 units of affordable housing, 15% of the housing in Gardner is affordable, one of the highest percentages in the state. Still, Gardner's high numbers don't offer any easy solutions; the community is still struggling to find the right balance in its housing market. e city's director of community development and planning, Trevor Beauregard, said state incentives for building affordable housing, like low income housing tax credits, are some of the only ways to attract investors to build housing in Gardner. "We'd like to see a lot more market- rate because obviously that attracts more professionals with disposable income, which we want to see in the community in our downtown," Beauregard said. e average rent in Gardner is $950, according to the housing listing website Zumper, significantly lower than Worcester's $1,350. e low rents make it infeasible to develop in Gardner without bringing in free equity through grants and tax credits, Beauregard said. "To create a healthy economy, you have to have a healthy mix, right? You can't just have one type of housing, you need to have all types of housing," he said. Continued from previous page Union House in Framingham rents units from $2,000 to $4,000 a month. W PHOTO/GRANT WELKER

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