Boston Mayor Michelle Wu's administration has launched a new fund aimed at tackling the city's affordable housing crisis.

The city formed the Boston Acquisition Fund in an effort to prevent resident displacement due to rent hikes and other external factors. The fund will act as a public-private partnership to support developers in acquiring multifamily housing in the city, according to a press release.

The fund will be administered by the Massachusetts Housing Investment Corp. and will support the acquisition of 500 homes in the first five years and help over 1,500 residents.

The city has invested $5M in grant funding and has secured $8M from prominent Boston institutions and organizations, including Mass General Brigham, Boston Medical Center, The Boston Foundation and Dana-Farber Cancer Institute. The city is aiming to raise $25M for the fund.

“As Boston faces unprecedented housing challenges, the Boston Acquisition Fund will help us safeguard affordable homes and keep residents rooted in their communities,” Wu said in a statement. “This innovative solution prioritizes equity, ensuring that residents—especially communities of color—are not pushed out by rising costs or outside investors. We are grateful for the partners who have already committed to this critical effort and look forward to expanding our reach.”

The fund is a part of the city's Acquisition Opportunity Program, which was established in 2016 and has acquired and preserved 1,000 homes in the city.

In 2022, the East Boston Community Development Corp. acquired a 36-building portfolio in East Boston for $47M and transferred ownership of the portfolio to the state's first Mixed-Income Neighborhood Trust. The partnership helped to preserve affordability for 114 units.