Recent decisions by owners of expiring use housing in Massachusetts: Do market changes and property characteristics matter

This study examines affordable rental properties in Massachusetts with long-term project based government subsidy agreements that are subject to expiration. Its main question is whether current data supports the common belief that owners' decisions to exit or renew subsidy agreements are affected by certain property characteristics and changes in local market conditions.; The study looks at properties of this class that have recently gone through an opportunity to either exit or renew subsidy agreements. At this time, among properties that have experienced the end of a subsidy agreement, there appears to be a statistically significant relationship between the presence of local use restrictions and owner decisions, but other property characteristics and market changes do not allow differentiation between properties whose owners are likely to renew their subsidy agreements and those who are likely to exit their agreements and convert to market rate operations.; The argument is made that there is a responsibility to maintain these properties as viable housing assets for people across the state. Further, the privately owned/publicly subsidized housing model should be embraced because it has a track record of effective performance. It is also politically tenable within the context of a capitalist economy that, historically, has been known for a symbiotic relationship between business and government.