New Affordable Housing Trust Fund Aims to Make Home Buying More Accessible
By Patrick DeVivo
Members of the Affordable Housing Trust Fund
Left to Right: Joe Viola, Treasurer; Helena Widtfeldt, Clerk; Mayor Jen Grigoraitis; Amy Tierney, Chair; Jim Oosterman, Vice-Chair
Photo from the City of Melrose
The price of a single-family home in Melrose has risen steadily over the last decade or more. The Warren Group, a provider of real estate transaction data, pegged the median price at $869,000 at the end of 2024. This continues a trend of increasing prices that, by some measures, has made Melrose one of the hottest real estate markets in the state.
The demand for homes in Melrose can be a source of community pride, but for many residents, it is also a reason for concern. Rising home prices create a financial barrier for a growing group of first-time home buyers.
In an effort to make the purchase of a home in Melrose more affordable, the city has established an Affordable Housing Trust Fund. Money in this fund will be available to eligible home buyers to offset some of the costs of purchasing a home in Melrose. The fund draws income primarily from fees paid by developers who opt out of a requirement to include a minimum number of affordable housing units in a construction project.
Following the passage of the Municipal Affordable Housing Trust Fund Law in 2005, over 100 cities and towns in Massachusetts have created their own affordable housing trust funds. For communities that have adopted the Community Preservation Act (CPA), CPA funds are a common source of funding for municipal affordable housing trust funds. Affordable housing trust funds can be used for a range of purposes, including:
- Financial support for the construction of affordable homes by private developers;
- Rehabilitating existing homes to convert to affordable housing;
- Increasing affordability in new housing development projects;
- Developing surplus municipal land or buildings;
- Preserving properties faced with expiring affordability restrictions;
- and rent assistance for low- and moderate-income households.
The Melrose Affordable Housing Trust Fund is administered by a volunteer board of trustees comprised of five Melrose residents, including the mayor. Members of the current board are: Mayor Jen Grigoraitis; Amy Tierney, Chair; James Oosterman, Vice Chair; Joe Viola, Treasurer; and Helena Widtfeldt, Clerk. Members of the board serve staggered two-year terms, with two members being replaced each January. All board members are approved by the City Council.
According to board Chair Amy Tierney, the state allows each community to administer its fund consistent with the specific needs of the community. The Melrose board is currently developing a strategic mission statement and an action plan. Issues to be addressed include the financial management of the fund, eligibility requirements, an application process for those seeking assistance, and a plan for educating and marketing this program to the general public. Over the next six months, the Melrose board will be working on these details and receiving technical assistance from the Massachusetts Housing Partnership, a state office that assists Massachusetts communities in establishing these types of funds.
“I’m excited to serve Melrose with such a talented and experienced group,” says Tierney. “I look forward to helping create and preserve housing opportunities in our community where all ages and income brackets can thrive, including those who work in our businesses, hospitals, and schools, as well as young families starting out, single professionals, and our older residents who wish to remain in this community.”
The next monthly meeting of the Affordable Housing Trust Fund board will be held on Monday, February 10th at City Hall. If you are interested in learning more about The Affordable Housing Trust Fund, feel free to contact Amy Tierney via mayorsoffice@cityofmelrose.org.
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