Last issue I wrote about the aftermath of rent control's demise. As I noted, there are a number of tenants who potentially face severe problems as their housing costs move from rent controlled levels to market rates. I believe that the city has the obligation of taking the lead in identifying who is at risk and identifying solutions that will assist those people who may be displaced.

There is a second, long-term problem the city faces as well: how to make affordable housing more available in Boston. Regrettably, the instinct of most local politicians is to call for the re-introduction of rent control. But in fact, Boston's rent control policies did little to promote affordable housing. There are better solutions, and toward this end, I have proposed the creation of a "Fund for Affordable Housing."

The Fund, to be administered by the city, would provide low interest loans and subsidies to developers and owners. The notion, similar to that used by the US Department of Housing and Urban Development, is to provide these incentives to those who build or renovate and agree to keep a portion of the building affordable to low or moderate income people.

How do we pay for such a scheme? Interestingly enough, the solution lies in the demise of rent control itself.

As every homeowner knows too well, housing units are taxed based upon their market value. The market value of a rent controlled unit charging $200 a month is substantially less than if that unit, absent rent control, charged $400 a month. If and when that once rent-controlled unit increases rents the city will change its valuation and the property taxes will increase. The Rental Housing Association estimates that the City will ultimately realize a $20 to $30 million increase in tax revenues as a result of rent control's elimination.

My proposal, a version of which is also being considered by the Mayor's Housing Advisory Panel, is that we use all or a significant portion of those proceeds to pay for the Fund's activities. It seems a certain form of rough justice that this windfall to the City be used for affordable housing.

How does the city benefit from this scheme? In several ways.

First, and most obviously, the Fund will help increase the available supply of affordable housing. Second, the efforts of the Fund will also increase the quality of the housing stock, since the Fund will provide money to those who renovate as well as build. Third, the Fund will boost the city's economy. All of the development and renovation activity will create jobs.

Finally, the Fund's focus on improving residential housing will encourage people to live in Boston. In a sense, the Fund can become a powerful program to promote residency in the city. The Fund is an exciting and dramatic step forward for Boston, one that will benefit residents and the City as a whole.