City looks to expand affordable housing project

CITY HALL — Financial assistance for first-time home buyers looking at 40 upcoming affordable housing units could grow with the possible expansion of a Doran Street project, as city officials today seek permission to submit another state funding request.

After submitting a grant application in September for $810,000 in mortgage assistance funds for a two-story, 35-unit residential project on 339 W. Doran St. — of which 24 would be priced for low- and moderate-income households — housing officials in October were authorized to negotiate an agreement with the developer to expand the project to include a $4.8-million parcel on 331 W. Doran St. that the city had bought a few weeks earlier.

Incorporating the extra parcels would include 27,500 square feet of public green space while increasing the number of residential units to 60 one-, two- and three-bedroom units, according to preliminary plans. The original project will also refurbish and preserve three Craftsman-style homes that will be part of its housing stock.

“It’s almost like a holistic approach toward housing,” Mayor Ara Najarian said.

Creating a place where people actually want to live is a big step in fostering a sense among new homeowners that they have a stake in the community, he said.

“The whole point is to not make it look like affordable housing,” Najarian said.

As both parties hammer out a complex development agreement, Community Development and Housing officials are expected to ask the Housing Authority today to authorize a request for an additional $390,000 in mortgage assistance funds to cover the extra 16 affordable units that would come with an expanded Doran Gardens project.

The state’s Building Equity in Growth in Neighborhoods Program funds would provide down payment assistance loans of $30,000 per affordable unit.

If ownership of an apartment changes hands, the money would be paid back to the city and put back into an account for reuse as mortgage assistance for low- and moderate-income first-time home buyers, according to a city report.

After the 45-year affordability period of the unit sunsets, the loan is forgiven.

“The residents that get in there will be lucky,” said Councilman Dave Weaver, chairman of the Housing Authority.