That the City Manager direct the appropriate City staff to examine the need and possibility of neighborhood preference in Cambridge in the short and long-terms

Diversity Preservation Policy (aka Pilot Displacement Preference) The goal of the policy is to stabilize neighborhoods and minimize displacement by providing a preference for existing neighborhood residents for up to 50% of the units in projects located in non-segregated geographies with high rates of displacement or households at high risk of displacement. The pilot preference will only be for initial rent up or sale of units. The Pilot Preference will run until the end of 2017. We will evaluate the impact of the policy after each completed project. The policy will not be applied to Federally-funded projects prior to obtaining HUD approval to do so. Neighborhood Eligible geographic target area for the displacement preference varies depending on number of units in the subject housing development. · <20 units = within 1/4 mile buffer · 20-50 units = within 1/2 mile buffer · 50+ units = within 3/4 mile buffer If the resulting target area has a population comprised of 60% or more of any single racial or ethnic category, the target may be expanded or the percentage of units subject to the preference may be reduced to ensure that access for persons of color is not hampered. DND will submit the demographics, including the racial and ethnic composition, tenure characteristics and rent burden data, of each geographic target area to Fair Housing & Equity for review. Eligible Neighborhoods (High risk for displacement) Target areas with more than 30% of its households with a severe rent burden (paying over 50% of their household income for rent). Household Eligibility Criteria for Displacement Preference Household living within the target geographic area and at least one of the following criteria: 1) Rent-Burdened Households not already living in a subsidized housing unit Rent Burdened: Household income under 30% of AMI paying more than 30% of income for rent or household income over 30% but under 60% of AMI paying more than 50% of income for rent. Includes Section 8 voucher holder in unsubsidized unit paying more than 30% of Income for rent (tenant paying amount of rent over FMR) 2) Elderly homeowners (62+) with household income under 80% of AMI (preference for rental housing only)

3) Renters with a disability and household income under 100% of AMI 4) Renter household with household income under 80% of AMI with school age children in a Boston school