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Department of Neighborhood Development
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Department of Neighborhood Development
Housing Policy --- Section 5-1

Policy Statement

Developers and their team members must have the capacity to carry out their proposed projects and be in good standing with regard to the management of existing real estate, payment of city taxes, water and sewer charges, and debt obligations.

In reviewing a development team the following standards shall be used:

Good Standing
Applicants must be in good standing with the Department of Neighborhood Development. In addition to Tax History and Water and Sewer reviews of an applicant's property owned within the City of Boston, DND shall review the status of such properties to determine if any of them are abandoned, vacant or otherwise underutilized. In the event that DND determines that such conditions exist on another property owned by the applicant within the City of Boston, an inquiry shall be made to the applicant as to the reason for such status and the plans of the applicant to remedy such conditions. If the applicant is unwilling, unable or does not provide DND with a timely, satisfactory plan to address such issues, DND shall declare the proposal non-qualifying. Bidders for City-owned land or buildings will be screened by the Boston Fair Housing Commission. Applicants must not have any unresolved housing discrimination complaints or convictions for violating fair housing laws. DND shall also review the status of all outstanding loans the applicant has with DND. If any of these loans are in default, DND will assess the reason for the default and the applicant's plan to remedy this condition. If the applicant does not provide DND with a timely, satisfactory plan to address the loan default, DND shall declare the proposal non-qualifying.

The City of Boston reserves the right to deny funding to any applicant principal or partner whom it determines is not creditworthy and not bankable. In general, an applicant will be considered not creditworthy if (1) debt obligations are not current and/or (2) public filings (e.g. liens, judgements) are outstanding.

Development Team
The Applicant/Development Team must be able to demonstrate the technical and financial ability to complete the project. Prior successful development experience is required. The record of the developer and members of the development team will be considered individually and collectively. DND and neighborhood partners may require tours of previous projects involving team members. The members of the development team must be in good standing on current DND projects. The development team must include an architect, an environmental engineer, a surveyor, and an attorney. The services of a professional estimator must be used to develop cost estimates. Emphasis will be given to experience with previous projects of similar scale and complexity. For supportive housing proposals, the experience of the service provider will also be considered. The applicant must be able to demonstrate an ability to complete the development tasks/benchmarks and begin construction according to the established development timeline.

Local Participation
Additional consideration shall be given to qualified development teams that include local businesses or residents or that provide local employment or conting in excess of the minimum City requirements.

If the applicant is a current or past recipient of DND housing assistance, there must be no significant project or construction delay, or outstanding regulatory compliance issues with regard to the assisted project. Individual development team members may be prohibited from participating in city-funded projects if they demonstrated significant performance deficiencies on previous city-funded projects; for example, if their performance contributed to significant delays, cost overruns, construction defects, etc.

Working Capital
The applicant must be able to demonstrate sufficient working capital to cover all identified pre-development costs.

5-1 (11/02)

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