That the City Manager is requested to work with all appropriate Departments to develop language to create an “Affordable Rent Incentive Program” program for Cambridge and to report back to the City Council with option, including the percentage of possible tax abatements

O-5 FIRST IN COUNCIL March 3, 2025 City of Cambridge VICE MAYOR MCGOVERN COUNCILLOR SIDDIQUI COUNCILLOR AZEEM MAYOR SIMMONS WHEREAS: Cambridge residents are living through the height of the housing crisis, with 49% of Cambridge renters currently cost burdened and with many residents being pushed out of their neighborhoods or being a paycheck away from homelessness; and WHEREAS: As of February 2025, the average rent in Cambridge, MA is $3,273 per month, which is 110% higher than the national average and with basic maintenance costs for property up-keep raising, property owners often turn to raising their rents leaving renters with increasingly limited options for affordable housing; and WHEREAS: An affordable rent incentive abatement option passed with the Massachusetts tax package at the end 2023 and the property tax exemption allows municipalities to adopt a local property tax exemption for affordable real estate that is rented by a person whose income is less than a certain income level set by the City or Town; and WHEREAS: Eligible landlords in the City of Cambridge must have tenants with a household income of 80% AMI or less, provide year-round rental units, and must provide rent prices that do not exceed 30% of a household’s total income, as determined “affordable” by the United States Department of Housing and Urban Development (HUD); and WHEREAS: In order to deliver more housing to renters at affordable rates, the City of Cambridge must enact policy that provides incentives and support for landlords who want to provide affordable housing opportunities, but are unable to afford doing so; and WHEREAS: Utilizing this new exemption citywide will incentivize landlords to keep their rents below market rate and award good landlords who are already securing rents at accessible Area Median Income levels, allowing the City to develop more opportunities affordable housing opportunities for tenants; now therefore be it ORDERED: That the City Manager be and hereby is requested to work with all appropriate Departments to develop language to create an “Affordable Rent Incentive Program” program for Cambridge and to report back to the City Council with option, including the percentage of possible tax abatements.