DHCD Report of the Commission for Public Housing Sustainability and Reform - June 22, 2012

The Purpose of the Commission

 

While significant gains were made during the Patrick-Murray Administration’s first term, the fiscal and operational viability of the housing and the integrity of the public housing system still face significant difficulties. Much of the portfolio is over sixty years old and normal wear and tear has been exacerbated by years of inadequate funding, such that the Patrick-Murray Administration inherited a $1.6 billion capital backlog and operating funds so depleted that preventative and even routine maintenance is often infeasible. Based on data in the 2008 “Real Cost of Operating Public Housing” study, the current public housing system had chronic inadequate funding for its operations as well. And in spite of additional operating and capital resources provided by the Patrick-Murray Administration and the Legislature, funds are still only approximately 30% to 50% of what is needed.

 

The state portfolio, which is distributed across 242 Massachusetts cities, towns and rural communities, is greatly enhanced by its local assets. LHA Commissioners are tremendous advocates for affordable housing in communities that might otherwise not have this important resource. What is unique and valuable about the local system is also perhaps one of its greatest challenges. Due to the small size of the majority of the LHAs and the housing’s inefficient distribution in geographically scattered, small-scale properties, many LHA staff and board members cannot leverage the capacity and/or skills to address the complex operating and capital issues facing LHAs today.