Senate Calls For Affordable Housing Overhaul
A Senate committee has called for an overhaul of the 40B housing program because some developers of affordable housing are allegedly abusing the system and taking excess profits.
The report from the Senate Committee on Post Audit and Oversight says some developers are cheating cities and towns out of millions of dollars under the 40B law and it must be changed. The law allows developers to go around local zoning if they set aside 25 percent of the units for low income residents.
Inspector General Greg Sullivan of Massachusetts says 40B has no accountability.
"It basically has been an unregulated, unmonitored program where developers have not been audited or measured, and we’re calling for a major overhaul to clean up the abuses," Sullivan explains.
The report calls for the state to monitor developers so their profits are limited. The state's housing agency has begun to act on the recommendations.
This program aired on June 2, 2009. The audio for this program is not available.