Salem Mayor Launches Affordable Housing Protection Program

SALEM, MA — Salem Mayor Dominick Pangallo said on Tuesday that the city is launching a program that intends to use American Rescue Plan Act funding on an incentive program for owners of rental property owners aimed at maintaining affordable housing.

The "Right of First Refusal" initiative would provide the property owners with a one-time payment of $1,000 through the city's remaining ARPA funds in exchange for allowing the city the option to buy that property at a comparable market rate should it ever be listed for sale.

The city would then have 120 days to accept the terms, after which time the owner could then field offers from the public.

"Salem has many buildings that offer affordable rents when compared to newer homes," Pangallo said in a statement. "These naturally-occurring affordable rental units are vulnerable to increases in rent, tenant displacement, or conversion to higher price condo units when they are sold on the open market."

Pangallo said that should the city agree to buy the property it would then work with partner agencies to offer affordable rents for the units while minimizing the displacement of existing residents.

According to the city, 48 percent of Salem residents are considered "low-to-moderate income," with 42 percent of those residents spending more than half of their take-home play on housing costs.

Pangallo said the city is now accepting applications from eligible and interested property owners who would like to enter into an RFR Agreement. The RFR is not a requirement to sell the property to the city or to anyone. It is only triggered if the property owner decides to sell the property, he said.

Applications, full terms and eligibility requirements can be found here.

(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at Scott.Souza@Patch.com. Twitter: @Scott_Souza.)