Morton Villiage

When Morton Villiage tenants heard that Avanath Capital, a national investor based in California, was purchasing the complex, they formed the Morton Village Tenant Association and demanded to meet with the firm to negotiate lease agreements.

With the help of City Life/Vida Urbana, they avoided a possible rent hike and eviction problem, seen at similar acquisitions.

Monday, Mayor Martin Walsh announced the city’s investment of $4 million to help maintain affordability at the complex. In the mayor’s commitment to make 1,000 units across the city permanently affordable, this is the largest acquisition so far.

In a press release, Walsh said he was pleased that Avanath Capital was able to work with tenants and come to an agreement.

“Guaranteeing long-term affordability for these homes is critically important for families and represents Boston’s steadfast commitment to preventing displacement,” he said.

The guarantee of affordability at Morton Village is part of the mayor’s revised Housing a Changing City: Boston 2030 plan. The city is tackling the challenge of increasing housing costs in three ways: producing more housing, preserving existing housing, and protecting households that are most at risk.

Avanath Capital has over 10,000 units across the nation. In a statement, Daryl Carter, Avanath’s CEO, said that their mission aligns with the city’s as well.

“Our niche focus is on affordable and workforce housing and preserving affordability for residents across the nation. This was our first acquisition in the Boston market, and it was an honor to work alongside the City of Boston and the Mayor towards a shared mission.”

Sheila Dillon, chief of housing for the city of Boston, said that the city has no jurisdiction over the sale of private property, but they can intervene in a few ways to make sure that the current tenants know their rights and are protected.

“Any time we hear of a transaction of a sizable number of units, especially in communities where we are concerned about displacement, we are reaching out to the broker first and foremost to say that the city is very interested in the outcome of the sale,” Dillon told the Banner.

They then notify local investors who may be interested in purchasing. Ultimately, the sellers chose an out-of-state buyer.

In July, when they were notified of the sale, the Morton Village Tenant Association began rallying and meeting with Avanath Capital to come to an agreement. Last week they announced that they secured five-year leases for all tenants and minimal rent hikes for the next five years as well. According to a release from City Life/Vida Urbana, the agreement allows for “rent increases of 3% per year for the first three years, and 3.25% per year for the fourth and fifth years. For seniors over 70, rent increases will hold steady at 3% per year for five years.”

Organizers at City Life/Vida Urbana were pleased with the outcome, as the five-year lease deal is one they have achieved at other properties around the city.

“The powerful organization of tenants that emerged almost overnight, that shocked us,” said Steve Meacham, coordinating organizer at City Life/Vida Urbana.

“Then the fact that the city was not only supporting our negotiations for the five-year contract, but they were also looking to invest money to create permanent affordability, all those stars aligned in this case.”