That the City Manager is requested to direct the appropriate City staff to examine the need and possibility of implementing the Pilot Displacement Preference program in Cambridge, especially when new housing is constructed in an existing neighborhood where displacement is occurring

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 2020 and an assessment and decision regarding the extension of the policy will be made at that time. We will evaluate the impact of the policy after each completed project. The policy will not be applied to Federally-funded or State-funded projects prior to obtaining HUD and/or DHCD approval to do so. Applicable Neighborhood Geographic Target Area (Project Buffer) 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 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 Neighborhood Target Areas Racial/Ethnic Diversity The project target area (buffer) may not have a population that is comprised of 60% or more of any single racial or ethnic category. If the proposed target area has a population that is comprised of 60% or more of any single racial or ethnic category, the target area may be expanded to ensure diversity or the percentage of units subject to the preference may be reduced to ensure that access for persons of color is not hampered. High Risk for Displacement Target areas (buffers) with 35% or more of its low-income renter households with a 1 moderate or greater rent burden (paying over 35% 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 Low income is defined as having a household income under $50,000

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