City Council - Ways & Means Committee Hearing on Docket #0201

• Governing Body: City Council - Ways & Means Committee
• Meeting Type: Committee Hearing
• Docket Number: #0201 - Order for a hearing to discuss Boston's FY27 operating budget.
• Date: March 05, 2026
• Time: 2:07 PM
• Chair: Councilor Benjamin Weber
• Vice Chair: Councilor John Fitzgerald
• Attendees:
  • Councilor Benjamin Weber
  • Councilor John Fitzgerald
  • Councilor Edward Flynn
  • Councilor Erin Murphy
  • Councilor Miniard Culpepper
  • Councilor Ruthzee Louijeune
  • Councilor Sharon Durkan
  • Councilor Enrique Pepén
  • Councilor Henry Santana
  • Council President Liz Breadon
  • Councilor Gabriela Coletta Zapata
• Panelists:
  • Sheila Dillon, Chief of the Mayor's Office of Housing (MOH)
  • Rick Wilson, Director of Administration and Finance, MOH
  • Monique Nguyen, Director of the Mayor's Office of Immigration Advancement (MOYA)
  • Dan Lesser, Chief of Staff, MOH

Chief Sheila Dillon and Rick Wilson presented a summary of housing achievements and upcoming fiscal challenges.

Key Accomplishments (Last 4 Years):

• Development: 6,200 new income-restricted units completed or under construction; 11,800 total units permitted.
• Homelessness: 7,800 homeless households placed in permanent housing; 400 new permanent supportive housing units created.
• Homeownership: 1,100 residents assisted via the 'One Plus Boston' program; 1,000 new affordable homeownership units built.
• Stability: 6,400 families stabilized through legal/financial assistance; launched the 'Access to Counsel' pilot for BPS families.

Fiscal Headwinds and Challenges:

• Federal Funding: The city receives approximately $75 million annually in HUD grants. There is significant uncertainty regarding these funds due to federal threats against 'sanctuary cities' and proposed moves away from 'Housing First' models.
• ARPA Funding: MOH received $240 million in ARPA funds (nearly half the city's total allocation), which must be spent by the end of the current calendar year.
• Market Conditions: High interest rates, labor costs, and tariffs are stalling approximately 30,000 approved units citywide.
• Direct Quote: "Housing First has really helped to stabilize folks in housing and give them the security they need to then proceed and get their treatment and services to maintain their stable housing."

Director Monique Nguyen detailed the office's impact and the growing gap between community needs and available resources.

FY25/FY26 Impact:

• Handled nearly 4,000 inquiries and provided 1,000 free legal consultations.
• Distributed $2.1 million in grants to 82 community partner organizations.
• Served 467 youth through the Immigrant Youth Advancement Program.

Resource Gaps:

• Legal Access: MOYA could only fund 39% of the demonstrated need ($900,000 funded vs. $2.3 million requested).
• ESOL Grants: Only 18% of the demonstrated need was met in FY26.
• Mental Health: The 'Weaving Wellbeing' grant met only 30% of the requested funding in FY26.

Inclusionary Development Policy (IDP)

• Councilor Flynn proposed a temporary rollback of the IDP requirement from 20% to 13% for five years to spur development amid high costs.
• Chief Dillon noted that while supply is critical, many of the 30,000 stalled units are already under the older 13% requirement, suggesting factors like interest rates and equity returns are the primary drivers of the slowdown.

Housing Stability and Vouchers

• Councilor Louijeune advocated for increased investment in city-based vouchers.
• Rick Wilson confirmed that approximately $14 million is allocated for the city's voucher program, supporting roughly 500 vouchers administered by the Boston Housing Authority (BHA).
• Councilor Weber inquired about the 'Access to Counsel' pilot. The program was funded at $450,000 and has served nearly 100 families to date.

Transfer Fee

• Councilor Louijeune and Chief Dillon emphasized the importance of the proposed real estate transfer fee.
• Direct Quote (Dillon): "The transfer fee... would, by most accounts, double what we have to produce affordable housing in the city at very little cost to those that have so much."

Immigration and Legal Defense

• Councilor Coletta Zapata and Councilor Louijeune expressed concern over ICE activity and the death of a Boston resident in ICE custody. They advocated for increased funding for the Immigrant Legal Defense Fund.
• Director Nguyen noted that the field is constrained by a shortage of immigration attorneys, even when funding is available.

Speaker: Eliza Parad, Coordinator of the Better Budget Alliance.

• Summary: Parad presented results from a 'People's Budget' survey of 681 residents.
• Key Findings:
  • Residents prioritized food access, affordable housing, and immigrant supports.
  • 75% of respondents favored decreasing the police budget.
  • Top participatory budgeting priorities included the Immigrant Legal Defense Fund and Housing Stability assistance.
• Direct Quote: "78% [of respondents] do not believe that more money for policing makes them safer."