House Adopts $3.8 billion spending bill, Combines Federal ARPA dollars with State Surplus - Many, but not all, MACDC Priorities are Included

November 1st, 2021 by Joe Kriesberg

On Friday, October 29, the Massachusetts House of Representatives approved $3.8 billion in new spending using a combination of Federal funds from the American Rescue Plan Act (ARPA) and state surplus revenue. The final bill included four so-called consolidated amendments totaling $174 million that funded projects in four areas – Health and Human Services, Economic Development, Housing, and Climate/Energy.  The bill, which now goes to the Senate, included some, but not all, of MACDC’s priorities. 

Affordable Housing: The bill includes $600 million for five statewide housing initiatives.  While this was less than the $1.6 billion that CHAPA and MACDC had been advocating for it still represents an exciting and unprecedented investment in our housing system. The five housing programs are:  

  • $150M for Supportive Housing Production
  • $150M for Public Housing Maintenance  
  • $100M for Homeownership Assistance  
  • $100M for CommonWealth Builder Program (homeownership production) 
  • $100M for Affordable Rental Housing Production

MACDC worked with allies to advocate for two key amendments on the House floor, but neither was included in the Consolidated Housing Amendment.    

  • Rep. David LeBeouf filed an amendment to provide $25 million for a Massachusetts Healthy Homes Initiative that would have provided funding to remove lead paint and other health hazards from 1-4 unit properties.  The Amendment garnered 34 cosponsors but did not pass. 
  • Rep. Ruth Balser and Michael Day filed an amendment to fund a Right to Counsel program for people facing eviction. The Amendment garnered 77 cosponsors but was not passed. 

Small Business Support: The bill coming out of the House Ways & Means Committee recommended $50 million for grants to small businesses impacted by the COVID-19 pandemic and resulting economic crisis – far less than the $1 billion proposal we put forward with the Coalition for an Equitable Economy. Rep. Liz Miranda and 39 other Representatives filed an amendment to increase this to $200 million. The final bill did increase the amount to $60 Million.  

MACDC appreciates the many Representatives who advocated for our priorities and we thank Speaker Ron Mariano and House Ways & Means Committee Chair, Aaron Michlewitz for putting together an historic and comprehensive investment plan that will improve the lives of millions of Massachusetts residents and create a healthier and more equitable Commonwealth. 

Commenting Closed

The Community Development Movement Lost one of its legendary leaders on April 28 when Charles "Chuck" Grigsby passed away.

May 26th, 2021 by Joe Kriesberg

Chuck's contributions to the Community Development field's birth and growth over the past nearly 50 years represent a legacy that will be remembered for a long time. It was Mel King who was the state representative that led the campaign to create the state’s community development infrastructure in the 1970s. It was Chuck Grigsby who was hired to transform that vision into reality by serving as the founding executive director of the Community Development Finance Corporation in the 1970s. 

Later, after community groups (including MACDC, MAHA and others) successfully won passage of legislation to require insurance companies to make community investments, the life insurance industry also turned to Chuck to make that dream a reality by hiring him to be the founding executive director of the Life Initiative in the 1990s. And once again when the Deval Patrick Administration merged CDFC with another state quasi-public entity to create the Massachusetts Growth Capital Corporation in 2010, they turned to Chuck to lead the merger and create a new, stronger, and more impactful agency.  He also served as the director of the Public Facilities Departments (now the Department of Neighborhood Development) for the City of Boston in the 1990s during the Thomas Menino Administration. 

To each of these roles, Chuck brought his extraordinary intelligence, leadership, creativity, and commitment. The results speak for themselves. Chuck was someone that I deeply admired from the start of our relationship in the 1990s when he helped us create the CDC Community Business Network, an innovative model for shared staffing and collaboration that was built in close partnership with the City of Boston. I clearly remember the meeting where Chuck laid out his vision. We all nodded in agreement. Later, I had the pleasure of working closely with Chuck as he built the Life Initiative into a critical player in the community development field - not an easy task given the insurance industry's lack of familiarity with our field. Finally, I had one more opportunity to see Chuck in action when he took the helm at MGCC where I serve on the Board of Directors. The success and impact of MGCC in responding to the pandemic over the past year (for which we recently gave them an award) can be traced directly to the culture and foundation that Chuck built during those early years. Over the course of our relationship, I learned a great deal from Chuck about finance, public service, politics, leadership and how to live life to the fullest (learn more about his many hobbies in this terrific Boston Globe article).

The Massachusetts Community Development movement is incredibly fortunate to have had many great leaders over the decades. Today, we walk on their shoulders and none were broader and stronger than those of Chuck Grigsby. May his memory be a blessing.

Commenting Closed

Pandemic Response: Supporting our small business community - A story about the power of relationships, collaboration, advocacy, and persistence

January 7th, 2021 by Joe Kriesberg

As the Commonwealth and the Country came to terms with the true impact of the COVID-19 Pandemic in mid-March 2020, I closed the MACDC offices, and sent our staff home with their laptop computers. MACDC’s staff knew that our focus had to remain on two things: 1) helping our members adjust to the reality of a pandemic; and 2) advocating for the communities we serve and represent. We immediately knew that housing stability would be a central focus of our efforts. We also knew that this crisis would have a devastating impact on small businesses, especially the more vulnerable ones with whom CDCs and CDFIs typically work (micro businesses, businesses owned by people of color, rural businesses, those in Gateway Cities, and other businesses that operate on thin margins and with inadequate equity). These businesses started the pandemic with less wealth, smaller margins, less access to capital and many operated in the very communities hardest hit by COVID-19.  We realized right away that this crisis could make our shameful racial wealth gap even larger.  As we move into the new year, I wanted to share some of my experiences and thoughts about how MACDC and its members worked with old and new partners across the public, private and nonprofit sectors to mobilize a response to the crisis in our small business community.

MACDC grows its long-standing Small Business Peer Group

Our efforts began on March 18, when we convened our Small Business Peer Group, comprised of CDCs, CDFIs, and other community groups who work with entrepreneurs every day.  This group has been meeting regularly (and sometimes irregularly) for more than 25 years, but never with this level of urgency. The relationships among practitioners that had been built over the previous years proved critical as we shared information and ideas, learned about resources and strategies, and provided each other with moral support. Amidst our confusion and fear, one thing was clear - no one wanted to face this challenge alone. We agreed to meet weekly while the crisis continued, with as many as 90 people joining some of our Zoom calls (compared to about 10-15 at the average meeting pre-COVID). Our network grew as we continued to invite more people to join us (municipal officials, regional planning agencies, small business development centers, and anyone else who shared our goals). By the time 2020 came to an end, we held 32 meetings with a total of 1,430 people in attendance, representing 180 individuals from 78 different organizations.

These meetings provided a regular forum for practitioners to not only learn from each other, but to hear from key policy makers and program administrators about the tools and resources available to small businesses. Larry Andrews and others from the Massachusetts Growth Capital Corporation were there every week. We routinely had guests like Economic Development Secretary Michael Kennealy, DHCD Undersecretary Jennifer Maddox, SBA Massachusetts Director Bob Nelson, and representatives from municipal governments, Small Business Strong, and other critical partners.

New partners start working together in new ways

The conversations on Wednesdays helped spark several organic collaborations as new ideas and new relationships opened new possibilities. Early on, a number of organizations were interested in surveying small businesses to identify their needs, so with the leadership of the Lawrence Partnership we developed a shared survey instrument that dozens of organizations distributed generating a much larger and more diverse survey response and important data about what was happening in the field.  Later, as we saw many businesses of color struggle to access PPP loans, the Foundation for Business Equity, LISC, and others reached out to key banking partners to develop what came to be known as the Equitable PPP Collaborative. LISC stepped up to administer this program that connected businesses of color to technical assistance providers and to banks ready to accept PPP applications from non-customers.  This extraordinary collaboration helped over 350 businesses access PPP loans. The Coalition also used its direct experience with the PPP program to fashion a detailed set of recommendations to the SBA and the Massachusetts Congressional delegation about how the program could be made more equitable and fair.  The recommendations were embraced by over 60 organizations on May 11.

In May, as the Commonwealth of Massachusetts prepared to reopen, two long-time community development professionals and friends of MACDC, Marty Jones and Adam Gibbons, volunteered to help collect, collate, and organize information and resources that would assist practitioners who were helping businesses figure out how to comply with the new rules and still make money (or at least lose less money). They built a special website for the network and provided regular updates and links to resources. MACDC’s Board of Directors was also invited to meet with the Governor’s Reopening Task Force and provide recommendations for how to reopen the economy safely and equitably.  Our strong partnership with the Baker Administration, which had started in February 2014 when candidate Charlie Baker met with our board, gave us the opportunity to influence policy at the highest level. Our Board would also meet with Governor Baker in June to discuss both housing and economic development issues associated with the pandemic.

A bigger vision begins to emerge

By the summer, as the pandemic and economic crisis wore on, and racial justice protests highlighted the deep racial inequities in our society, our work took on new urgency. Glynn Lloyd of the Foundation for Business Equity initiated a conversation among several groups, including MACDC, Amplify Latinx, the Black Economic Council and LISC about how we could build on the success of the Equitable PPP initiative to build an enduring coalition. We started meeting regularly and created a vision for the Coalition for an Equitable Economy and formed an initial steering committee with leaders from over 15 community-based groups. By design, people of color compose a majority of the steering committee, and the Coalition adopted a mission statement focused on closing racial inequities in the small business sector. The Coalition is now poised to advance our policy and program objectives over the long term.  Indeed, the Coalition has already moved beyond immediate relief efforts. This fall, when BECMA led an effort to push the Baker Administration on the Commonwealth’s supplier diversity efforts, I helped mobilize a letter signed by 27 groups in support of BECMA’s agenda. Some of us then joined BECMA in their meetings with the Governor and his advisors, showing strength and unity within our coalition.  A few weeks later, BECMA secured significant policy wins when the Governor announced new initiatives to improve supplier diversity. I would not have been in those meetings but for the relationships and trust built over the prior few months.

Also, during the summer, there was a growing desire to conduct another small business survey to understand how the crisis was evolving, in particular its impact on businesses owned by people of color.  This time several of the organizations around the table agreed to pitch in their own financial resources to hire MassINC to conduct a more formal and professional business survey.  The results provided important insights into what was going on with small businesses, in particular micro-entrepreneurs and businesses of color and gave new weight to our advocacy efforts.

The Coalition has also begun to work with the Boston Foundation to map out strategies to build a strong small business eco-system that can help reduce racial disparities across the state. We envision an eco-system where underserved businesses are aware of and able to access the support they need to succeed. We are also working with Mass Inc to conduct a research project that examines best practices in public policy that can help advance our vision for a more equitable small business system. A third working group is looking at how we can create the financing products that small businesses need to grow and sustain their businesses. All these projects will continue in 2021.

Our coalition mobilizes for small business relief and recovery dollars

Throughout these months, MACDC coordinated an ambitious and persistent advocacy campaign to get relief dollars to small businesses and funding to support the community-based groups that were helping these business owners.  On March 23, 2020, MACDC issued policy recommendations for responding to the COVID-19 crisis that included a call for an initial $150 million investment to support small businesses.  These recommendations were later embraced by a coalition of nearly 80 organizations. We presented these recommendations to Secretary Kennealy; to legislators (including at MACDC’s Annual Lobby Day on April 28) and these ideas eventually became central to Governor Charlie Baker’s small business relief plan in the Fall.  We repeatedly engaged the media and I probably talked to Boston Globe reporters on a weekly and sometimes daily basis to keep these concerns in the press.  Rosario Ubiera-Minaya, Segun Idowu and I jointly published an op-ed about these recommendations in Commonwealth Magazine.

For weeks and months, our coalition pressed the case for more state and local dollars for small business relief.  We first saw success at the local level as cities began using CDBG funding to support small business grants.  Peter Dunn from the City of Worcester made a presentation at one of our Wednesday meetings to share with others how Worcester had navigated the complicated CDBG rules to make grants available to businesses quickly.  In July, both the House and Senate passed economic development bills that provided $75 million and $80 million respectfully for small business relief.  Finally, in October 2020, I was able to join Governor Baker at a State House press conference (my one and only trip to the State House during the pandemic), as the Governor announced a new $50.8 million grant initiative aimed at priority businesses such as people of color, veterans, women, LGBTQ and Gateway Cities.  A few weeks later, the Legislature and the Governor agreed to provide $5.1 million in funding for the Small Business Technical Assistance program – up from $3 million last year. This allowed MGCC to support 65 community-based organizations across the state.  The Legislature and the Governor also approved $17.5 million for CDFIs and CDCs to invest in small businesses and an additional $17.5 million in grants. Finally, on the last night of the legislative session, the House and Senate approved $110 million in new capital authorizations for small business programs.  All these initiatives – the grants, the CDFI investments and the technical assistance – were part of the recommendations that we first put forward in March!

With these new resources secured, the power of the Network once again revealed itself as dozens of CDCs, CDFIs and community-based groups mobilized to help clients apply for grants and LISC stepped up again to coordinate information flow, communications, and technical assistance.  By the application closing date, over 10,000 businesses had applied for help, including 3,700 businesses owned by people of color.  Governor Baker announced initial awards of $50.8 million on December 21, with 95% of the grants going to businesses owned by people of color – a victory for racial equity that would not have happened without this network. A few days later, he announced another $68 million in grants with 50% going toward businesses of color and 50% to women-owned businesses. This was in sharp contrast to what we saw with the PPP program where white-owned and larger businesses fared better. On December 23, the Governor announced a commitment of $668 million in small business grants – far more than we had ever expected, but an amount that is clearly needed to meet the devastation caused by this pandemic.

A victory of that scale has many parents, so I will not argue that our Network deserves all the credit.  Clearly, many other business advocates and industry associations were also pushing for resources, as were municipal and elected officials. No doubt Governor Baker and his entire Administration were already aware of the pain created by the necessary public health measures and were determined to provide some relief.

That said, the Governor cannot distribute $668 million by himself. He needs organization, infrastructure, and a delivery system. He needs to be pushed by advocates like us. Moreover, we know these programs cannot be implemented equitably without community-based organizations.  Our network, working hand in glove with MGCC for the past ten months, created the opportunity and platform (and external pressure) to make this investment possible.

Today’s victories were built on years of hard work

I think it is important to remember that the seeds of this success were planted many years ago.  For me, it goes back at least until 2006 when MACDC was able to successfully lobby Governor Mitt Romney and the legislature to create the Small Business Technical Assistance program in the first place.  At our 2006 MACDC Convention, we secured a pledge from then candidate Deval Patrick to sustain the program, which he did. In 2010, we worked with the Patrick Administration (and Senate President Karen Spilka who was chair of the Economic Development Committee at that time) to create the Mass Growth Capital Corporation as a successor to the Community Development Finance Corporation.  In the negotiations over that legislation, we insisted that MGCC retain the mission and commitment to racial equity that embodied CDFC (which itself was created by Mel King in the 1970s) and secured a permanent seat for CDCs on the MGCC Board. Larry Andrews and I were founding board members of MGCC and together with our colleagues on the board and staff, and under the leadership of the Patrick Administration, we built an organization dedicated to equitable small business development. Governor Baker embraced this vision when he spoke at the 2014 MACDC Convention as a candidate and has followed through ever since. In 2019, Governor Baker and the Legislature increased funding for the program by 50% to $3 million – long before COVID-19 even existed!

More recently, the Baker Administration and MGCC had a few trial runs at providing disaster relief to small businesses, first during the snow emergencies that welcomed Governor Baker to office in January 2015, and then again in 2018 following the Columbia Gas explosions in and around Lawrence. In both instances, MGCC was there to support impacted businesses and the lessons learned in those crises – especially the close collaboration with Mill Cities Community Investments in Lawrence – proved vital when COVID-19 arrived.

I share this history to underscore that successful advocacy and successful community development is an on-going process that builds on past success and past failure, that relies on lessons learned and relationships forged, that builds infrastructure and muscle memory and is handed off from Administration to Administration and generation to generation. The pandemic accelerated this process, but it did not start it, and it will not end it.  I have no doubt that the lessons and relationship built over the past 10 months will continue to yield impact for years and even decades to come.

The Path Forward

Most immediately, of course, the network will continue to address the immense challenges that remain. As we start 2021, with hope that vaccines will soon end this wretched pandemic, we are mobilizing the network to tackle an ambitious agenda:

  • Help more businesses apply for and smartly deploy the $668 million in MGCC grants.
  • Help more businesses secure new PPP forgivable loans and get existing PPP loans forgiven.
  • Partner with DHCD and local governments to fully disburse existing CDBG resources for small businesses.
  • Collaborate with MGCC to implement new small business support programs approved by the Legislature, including a major new investment program for CDFIs & CDCs that lend to small businesses and a program to close the digital divide among small businesses.
  • Convene our network bi-weekly to continue sharing information, building relationships, and engaging policy makers.
  • Offer professional development opportunities to practitioners through the Mel King Institute for Community Building.
  • Provide support to the small business community to ensure that they have the information, capital, customers, and networks needed to successfully reopen and scale up their operations as health restrictions are hopefully eased later this year.
  • Systematically strengthen the small business eco-system by working with the Boston Foundation, MassINC and others to ensure that it can spark and sustain equitable business development that closes that racial wealth gap over the long term.
  • Transform this network into a powerful advocacy force under the banner of the Coalition for an Equitable Economy, so we can continue this work beyond the immediate crisis and build a dynamic and equitable economy for everyone.

Together, we can take some pride in what was accomplished in 2020, even as we wish we could have done more. Thankfully, the relationships, networks and results built in 2020 have created an opportunity to achieve more in 2021 and beyond. 

As we begin this work anew, I take inspiration from the courage and persistence of the thousands of small business owners who have endured so much and continue to fight, adapt, and persevere. They have sacrificed to help stop this deadly virus, and it is our turn to have their back.

For their benefit and ours, let’s get to work!

Commenting Closed

Small Business Advocacy Begins to Bear Fruit

July 23rd, 2020 by Joe Kriesberg

The moment that Governor Baker and governors across the country announced health emergencies in March that required most businesses to close, it was clear that micro- and small-businesses would be particularly vulnerable to long term-financial harm.  We also knew that it would hit particularly hard on businesses owned by Black people, immigrants, people of color, and other historically disadvantaged communities that have less accumulated wealth, smaller margins, and often have customers who are the hardest hit by the COVID-19 pandemic. 

To mitigate the harm, MACDC immediately issued a call on March 23 for a $150 million Small Business Relief and Recovery package that included a request for $30 million in grants for small businesses. A few weeks later on April 22, a coalition of 79 community organizations issued the same set of policy recommendations as we began to see that the federal Payroll Protection Program (PPP) – enacted by Congress in late March – was not going to serve many of the businesses in our communities.

The need for such grant funding has become increasingly clear as the Program has been implemented and the economic crisis has deepened and lengthened.  It is now abundantly clear that the economic recovery will be long and slow and that most small businesses simply cannot take on more debt.  These businesses were impacted by the government’s appropriate need to protect the entire community from the virus – and we believe the entire community has an obligation to help these business owners survive.

Thankfully, after four months of advocacy, we are beginning to see grant funding rolled out to small businesses across the state.  In the first few months, it was mostly cities creating grant programs with federal CDBG dollars provided by Congress as part of the CARES Act.  Boston, Worcester, Springfield, Northampton, Cambridge and many other cities rolled out programs, generally aimed at businesses with 5 or fewer employees.  These grant programs provided critical operating capital and funds to buy Personal Protective Equipment (PPE); however, in virtually every case the programs were overwhelmed with applications.

Last week, Governor Baker announced $19.6 million in CDBG funding for non-entitlement communities (i.e. smaller towns and cities that don’t get their own CDBG) with most of it allocated for grants to micro businesses.  Many CDCs are expected to play a central role in this micro-enterprise grant programs by providing outreach, intake, technical assistance and in some cases direct administration of the programs.  Franklin County CDC, Hilltown CDC, Community Development Partnership on Cape Cod, New Vue Communities and Quaboag Valley CDC are among the CDCs expected to play such roles.

The State Legislature has also begun to respond to our calls for small business support with $10 million included in the recently passed supplemental budget.  The bill is now on the Governor’s desk for his signature.  These funds will be administered by the Massachusetts Growth Capital Corporation (MGCC) and serve businesses with up to 50 employees who have been unable to access PPP or other federal programs.

MACDC and its coalition partners are also advocating for Governor Baker’s economic development legislation, which would authorize an additional $15 million in grant funding for micro businesses and $35 million of grant funds for Community Development Financial Institutions (CDFIs) and CDCs that make low-cost loans to small businesses (a second element of our policy proposals from March).  This bill is pending in the Legislature and is expected to pass before July 31.  While we are thrilled at the prospect of $50 million in authorization for new bonds to support small businesses, the critical question will be how quickly Governor Baker disperses these funds.  Under Massachusetts law, the Governor has sole authority for allocating such bond authorizations on an annual basis, and this bill has been deemed a five-year bond bill.  Spending these dollars over a five-year period would not provide the boost we need now as business owners fight to survive.

Finally, MACDC and its partners are advocating that Governor Baker use a significant portion of the $26 million in federal round 2 CDBG funding that is also available to deal with the economic crisis. 

In total, we expect state and local governments to deploy well in excess of $30 million for small business grants by the end of 2020.  At the same time, the economic crisis is likely to be much worse that we realized back in March and April.   This recovery process is going to take longer and the impact on small businesses is going to be even more severe, so we will need substantially more funding at the local, state, and federal level in the weeks and months to come.  MACDC and its partners will continue to press our case.



Commenting Closed

DHCD Announces Special COVID-19 Response CDBG NOFA For Non-Entitlement Communities

May 21st, 2020 by Joe Kriesberg

The Department of Housing and Community Development announced on Friday, May 15, 2020 that they would be using newly available CDBG money from the CARES Act to support housing relief, micro enterprise grants and social services.  The funding notice calls for $10 million to be used for rental relief in non-entitlement communities (largely rural and suburban communities) and to be delivered through the existing RAFT program network. This advances one of the core policy recommendations for which MACDC has been advocating since the beginning of the COVID-19 crisis.

The notice also invites municipalities to submit collaborative proposals – potentially in partnership with CDCs – to offer micro enterprise grants to businesses impacted by COVID-19.  This is also aligned with one of the top policy priorities for which we have been advocating. We’re also pleased that municipalities can apply for funding to provide vitally-needed social services, including food assistance, to people impacted by the Covid-19 crisis. The inability of families and individuals to access healthy food has been noted by several CDCs, who are involved in efforts to respond to this burgeoning need.

We thank Governor Baker, Secretary Kennealy and Undersecretary Maddox for listening to our recommendations and responding with concrete action that will help families, business owners and communities across the state. (Note – cities in Massachusetts already received a direct allocation of CDBG earlier this year).

DHCD has also received an additional $26 million in CDBG money in Round Two of the CARES Act program and will be releasing that money in the coming weeks. This second round of funding will be available statewide, including our cities.

Commenting Closed

MACDC Achieves Solid (albeit insufficient) Progress on our COVID-19 Response Policy Recommendations

April 26th, 2020 by Joe Kriesberg

On March 23, 2020, MACDC issued a set of initial recommendations for state policy makers with respect to helping small businesses, tenants, homeowners, and communities deal with the economic fallout from the pandemic. While there is much more to be done at the local, state and federal level, we have seen some important progress over the past month. Some of the key policy wins include the following.

  • The Federal CARES Act provided essential funds to address the crisis that were consistent with our initial recommendations.

    • Unemployment Insurance:  The CARES act made important expansions to our Unemployment Insurance program both to ensure more generous benefits (an extra $600 per week) and coverage for contractors and self-employed individuals.

    • Small Business Assistance: The Paycheck Protection Program (PPP), despite its flaws, will help thousands of businesses and nonprofits across the state, including dozens of CDCs (and other nonprofit organizations) who have (or will) received funds to help stabilize their operations during the crisis and to avoid layoffs.  More than 47,000 loans totaling over $10 billion were made in Massachusetts in the first round and we expect to see similar numbers in the second round.  Unfortunately, the program has not done enough to support very small businesses and businesses of color and this needs to be addressed both in the implementation of Round 2 and in future small business relief efforts.

    • Community Development:  Congress provided an additional $5 billion in Community Development Block Grant Program (CDBG) resources that can be used for a variety of purposes, including emergency grants to small businesses.  Indeed, several cities across the Commonwealth have already begun to offer such grants using CDBG dollars, including Boston, Worcester, Cambridge, Northampton and others.

  • Eviction & Foreclosure Moratorium: The legislature has passed, and Governor Baker has signed, a strong eviction and foreclosure moratorium that will protect residential tenants, homeowners and small businesses during the health emergency.

  • Housing assistance: Governor Baker was able to secure $5 million in new funding from MassHousing to provide an immediate boost in funding for the RAFT program, which helps lower-income households cover their housing expenses.  Several cities are also using public and private dollars to help tenants pay their rent.

  • State Small Business Assistance: Governor Baker secured $20 million for emergency loans to small businesses.

  • Mortgage Assistance: Mayor Marty Walsh secured commitments from 12 mortgage lenders in the City of Boston to provide borrowers impacted by COVID-19 with forbearance on their loans.  Meanwhile, state and federal banking regulators issued guidance encouraging lenders to provide forbearance and other relief to homeowners.

The above actions represent good progress, but there is more to do.  Clearly, the federal government needs to lead the way because it can provide substantially more money than local or state governments. We are advocating with our Congressional delegation on a range of issues related to small business support, affordable housing and community development.  We have also issued an updated version of our policy recommendations for state policy makers.

Commenting Closed

MACDC's COVID-19 Policy Agenda: Moving Forward

April 7th, 2020 by Joe Kriesberg

On March 23, 2020, MACDC issued a set of initial policy recommendations designed to mitigate the economic fallout from the COVID-19 crisis.  Our recommendations focused on helping tenants and homeowners remain safely housed now and in the future, helping small business owners survive the shutdown of the economy, helping people who are out of work receive adequate unemployment insurance, including those who are (or were) self-employed, receive sufficient unemployment coverage, and ensuring the affordable housing system remains financially capable of providing safe housing to its current residents while continuing to build the desperately needed affordable housing in the pipeline. Read our full initial policy recommendations.

Since issuing our recommendations, we have seen some positive developments at the local, state, and Federal level that advance our recommendations: 

State nears enactment of an Eviction and Foreclosure Moratorium

  • On Thursday, April 2, the House of Representatives passed a strong eviction and foreclosure moratorium bill that would ensure:
  • Landlords are prohibited from terminating residential or commercial tenancies until 30 days after the COVID-19 emergency declaration ends; this includes notices requesting or demanding that the tenant vacate the premises;
  • There is an exception for “emergency cause” evictions where there is criminal activity or lease violations that are detrimental to the health or safety of others; 
  • Pending eviction cases are frozen, except those under the exception, with a pause both in court and in enforcement of eviction orders by sheriffs;
  • Similarly, there is a moratorium on foreclosures until 30 days after the COVID-19 emergency declaration ends;
  • Landlords may not charge a late fee—nor provide negative information to a consumer reporting agency relating to non-payment-- if a tenant provides notice and documentation that the non-payment was because of financial impact related to COVID-19.
  • MACDC supports the House bill and urges the Senate to adopt a similar or identical bill quickly, so legislation can be signed into law as soon as possible.

Governor Baker announces $5 million in new rent relief funding

In response to the COVID-19 pandemic, the Baker-Polito Administration has announced steps to ensure housing stability for vulnerable populations, including a new $5 million special fund under the Residential Assistance for Families in Transition program for eligible households who may face eviction, foreclosure, loss of utilities, and other housing emergencies. Read more about the RAFT program here.

Funding for this program has been high on MACDC’s advocacy agenda. While we are grateful for this $5 million, we believe there is need for much more. MACDC is advocating for at least $50 million in emergency funding and probably more in FY 21.

City of Boston Rent Relief Fund

Boston Mayor Marty Walsh on Thursday announced a $3 million Rent Relief Fund to assist Bostonians who are at risk of losing their rental housing due to the COVID-19 pandemic. The funds will help income-eligible tenants achieve housing stability by providing direct financial relief to assist with rental payments. Applications to the Rental Relief Fund will be available on Monday, April 6th. Read more here.

In MACDC’s initial policy recommendations in response to the public health and economic crisis, we called on local, state, and federal policymakers to adopt emergency efforts to ensure housing stability during this crisis. Thank you to Mayor Walsh for putting this much needed resource in place.

Governor Baker and Massachusetts Growth Capital Corporation deploy $20 million in emergency loans to small businesses

The Massachusetts Growth Capital Corporation first announced $10 million in loans and subsequently offered another $10 million in loans to small businesses impacted by the COVID-19 crisis.  This program was designed to be a bridge to federal loans now being made available under the CARES Act through the SBA.

CDBG Funding is Providing Emergency Grants to Small Businesses

MACDC is pleased that more and more cities are launching emergency grant programs for small businesses.  Worcester, Fitchburg, Cambridge, and now Boston have announced programs using Federal CDBG money to assist businesses that are not able to take on new loans.  We are advocating for more cities to do the same and for DHCD to use its CDBG money to offer similar grants in smaller towns and rural communities.  With significant new CDBG funding included in the Federal CARES Act, there is an opportunity to help more businesses across the state.

Federal CARES Act provides important relief but falls short of what’s needed

  • The CARES Act included important provisions that respond to our recommendations, but it has left gaps that must be addressed in subsequent Federal Legislation: 
  • The $600 weekly boost in unemployment insurance will help millions of people across the state and country.  We were also very happy to see this coverage extended to self-employed people and independent contractors, one of the core recommendations in our policy recommendations;
  • The Payroll Protection Program Loan offers forgivable loans to small businesses and nonprofits, but lack of criteria, priorities, and the chaotic roll out will likely mean that smaller businesses, nonprofits, and those facing the most challenges are unlikely to receive their fair share of the program.  With $350 billion available nationally and funds being deployed on a first come first served basis, many businesses may get shut out of the program and those are likely to be smaller, underserved businesses from low-income, immigrant, and communities of color.  Moreover, the program fails to drive dollars to those who most need it – businesses and organizations that have been ordered shut completely due to the crisis. Indeed, the program is much better suited to businesses that are experiencing a modest reduction in revenue (or even just facing “uncertainty”) who can reasonably retain their workforce. Going forward, this program will need more money and better targeting to ensure a more equitable outcome.
  • The CARES Act provides $12 billion of critical funding for housing and community development, but more will be needed to deal with the looming crisis in the Low Income Housing Tax Credit Program.  Congress needs to extend deadlines in the program and provide funding to fill the growing financial gaps in projects facing delays in construction and lease up.

What Comes Next?

We recognize that our state and local leaders are facing an unprecedented public health emergency that is consuming nearly all their time and energy. We are grateful for the leadership we see from Governor Baker, Mayor Walsh, and other local and state leaders across the state.  Caring for the sick, flattening the curve and slowing the spread of this disease must be our number one priority.  The Community Development Movement is doing its part by helping our residents stay safe, delivering food to those in need, reaching out to residents who may need assistance, or simply making a friendly call.

While we all work to stem the health crisis, the economic crisis looms larger every day – especially for vulnerable and marginalized populations. Now that we see what the CARES Act will and will not do, it is imperative that we take bolder and swifter action at the state and local level, while we also fight for another round of Federal Relief Legislation.  We urge the legislature and the Governor to immediately begin working on an additional Economic Relief and Recovery Package that meets the magnitude of this crisis. We also recommend that the Baker Administration create a Covid-19 Small Business Response Task Force, to coordinate efforts to help small businesses survive the immediate public health crisis and recover during the longer economic crisis.

The need for active and vocal advocacy has never been greater.  We hope you will join with us in that effort, including on April 28 when MACDC will hold its first-ever (and we hope last) Virtual Lobby Day.  Stay tuned for more details!

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A message from MACDC President, Joe Kriesberg, regarding Coronavirus

March 13th, 2020 by Joe Kriesberg
Dear friends,
As all of us come to terms with the scale and scope of the Coronavirus Pandemic, I wanted to let you know how MACDC is responding to both the public health crisis and the growing economic impact. This is our strategy as of now, but clearly could change as new information arises.
Our first priority is continue to do our work as best we can while fully protecting the safety of our staff members and all the people with whom we work. Toward that end, we will be switching all of our committee meetings and peer group sessions to an online format and canceling or postponing all public events for the next few weeks or until further notice. We are also allowing our staff to work from home and may institute a requirement to do so at some point. Thankfully, a few years ago we moved our information technology infrastructure to the cloud so our staff can work from home without any interruption and with full access to all of our files and systems.


Our second priority is to help our members navigate these unchartered waters. We plan to provide online opportunities for information exchange and peer learning. CDCs must deal with so many complex issues from office operations, to property management, construction project schedules, small business lending, youth programs, senior services and more. Therefore, we are looking at how to support CDC professionals across these different work areas. We also want to serve as a conduit for information flow from public officials to our members and vice versa.


Our third priority will be to advocate for special public policy initiatives that protect low- and moderate-income people who are most vulnerable during a crisis like this. This will include policies and programs to protect tenants, homeowners, hourly workers and small business owners.  We will also be advocating with public and private funders to provide nonprofits with some leeway and flexibility regarding deliverables and deadlines that cannot be met due to the crisis.


Obviously the situation continues to evolve quickly and we will respond as new information and new circumstances dictate. Please contact us if you have any thoughts or ideas about how we can help our communities get through this crisis.


We hope everyone will take necessary precautions and stay safe. We look forward to seeing some of you online in the coming days and hopefully, before too long, in person as well.


At its heart, community development is based on the notion, as the late Senator Paul Wellstone used to say, that "we all do better when we all do better." Never has this been more true than during this pandemic. We are truly all in this together. Let us hope - and work to make it so - that while this crisis requires social distancing now, that it will ultimately bring us closer together as one Commonwealth, one Country and one World.


Joe Kriesberg
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Could 2020 be the year we make Community Development Policy History?

January 6th, 2020 by Joe Kriesberg

As we enter a new year and a new decade, MACDC is preparing for one of the busiest and hopefully most impactful policy years in recent memory.  The Massachusetts state legislature has seven months before the session ends on July 31 and a wide array of housing and community development priorities are on the docket. MACDC and its members will be focused on these nine priorities:

  1. Major new revenue for housing and climate investments: MACDC is a founding member of the HERO Coalition – Housing and Environmental Revenue Opportunities – which is comprised of housing, climate, faith-based, labor, and social justice groups working together to secure a major new revenue stream to support investments in affordable housing, and climate resiliency and mitigation. Our proposal is to double the deeds excise tax and dedicate 50% (approx. $150 million/yr.) to housing and 50% to climate. This could be the biggest new investment in housing in decades and lay the foundation for more collaboration among housing, climate, and social justice advocates.  MACDC is also actively supporting state legislation that would empower cities and towns to adopt their own, local transfer tax to generate new revenue for affordable housing.
  2. Neighborhood Stabilization: MACDC continues to work with MassINC, the Gateway Cities Caucus, and others to enact legislation to accelerate the renovation of vacant and blighted homes in weaker market areas of the state. This effort also includes launching the new Neighborhood Stabilization Hub at MassHousing thanks to funding we secured in the FY 20 budget.
  3. Land Use and Zoning: MACDC is actively working with many others to help secure passage of Housing Choice legislation that would lower the threshold for cities and towns seeking to enact smart zoning and land use practices.
  4. Economic Development: MACDC will be advocating for:
  • An increase in funding for the Small Business Technical Assistance program from $3 million to $4 million per year.  This program now funds 47 CDCs, CDFIs and other community-based organizations all of whom are helping underserved entrepreneurs launch and grow small businesses;
  • Funds to provide capital grants to CDFIs that offer small business loans, a program we helped launch a few years ago. 
  • New capital funding to support the Mass Food Trust, a program administered on behalf of the state by Franklin County CDC and LEAF, which provides grants and loans to expand access to healthy foods in lower-income communities.
  1. Lead Poisoning Prevention: We are making a major effort this year to recapitalize the highly successful Get the Lead Out program administered by MassHousing and the Department of Housing and Community Development. The program has helped thousands of families and children since its inception 25 years ago, but it is now dangerously close to running out of money. The state recently adopted new regulations that recognize that lead poisoning is even more dangerous than previously understood, so we must fully fund this vital public health program.
  2. City of Boston Home Rule Petition on Linkage and Inclusionary Development: We are working closely with Mayor Marty Walsh to secure legislative passage of the City’s home rule petition that would allow it to make modifications to these two successful programs, without seeking prior approval from the state legislature. 
  3. Tenant protections: MACDC is supporting legislation to create a right to counsel for tenants facing eviction as well as legislation that would enable tenants to band together to buy their own buildings when they are put on the market.
  4. Closing the Racial Homeownership Gap: We will be working closely this year with MassHousing and DHCD to roll out new initiatives to help expand homeownership opportunities for first-time homebuyers in general and people of color specifically. These efforts include the new $60 million homeownership development funding initiative announced by Governor Baker last year, as well as a new down payment assistance program and potentially other initiatives.
  5. Rural Policy: In October 2019, the MA Rural Policy Advisory Commission (RPAC) released its Rural Policy Plan for the Commonwealth of Massachusetts. This Plan suggests policy recommendations related to the unique issues and challenges faced by rural communities across the Commonwealth and addresses 14 focus areas that were identified through listening sessions held across the state in late 2018. MACDC will work with the members of the RPAC and rural Regional Planning Agencies in its efforts to engage legislative and administration stakeholders to fulfill and implement the Plan recommendations, in particular the creation of an Office of Rural Policy.

MACDC cannot make progress on such a robust and diverse agenda without many partners. We are grateful for our allies and partners in the legislature; the Baker-Polito Administration who share many of these goals; our coalition partners at other advocacy organizations; and of course, our members who take the time to join us in advocating for these proposals. Our 2020 policy campaigns will include our annual “Doughnuts with your Delegation” campaign in February and March when our members will meet with their legislators in their home districts and our Annual Lobby Day on April 28, 2020 at the State House.  It will also include countless meetings, phone calls, letters, and other communications over the next seven months.

2020 offers the opportunity to make community development history here in Massachusetts.  Let’s make it happen!

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Closing the Racial Homeownership Gap

October 29th, 2019 by Joe Kriesberg

At the MACDC Convention in October 2018, we gave Governor Charlie Baker (and his opponent at the time, Jay Gonzalez) a copy of a new book by Richard Rothstein called “The Color of Law.”  This book documents the centuries of discriminatory housing and land use laws that systemically segregated our communities and denied African Americans and other people of color the opportunity to buy homes, accumulate equity, and to pass that wealth onto their children. We wanted our Governor (regardless of who won the election last November) to understand that history so he could understand why white people in Massachusetts are more than twice as likely to own their own home as a person of color.  This represents the 3rd worse homeownership gap in the country.

Policy makers – as well as advocates and community leaders – need to understand that history so we can change it.  Indeed, the community development movement was created, in part, to redress some of these discriminatory policies and practices – urban renewal, redlining, and housing discrimination. For 50 years, we have fought to expand access to safe and fair mortgages, to educate first-time homebuyers and to build homes that moderate income people can afford to buy.

Last year, MACDC adopted a strategic plan that made closing the racial homeownership gap a top priority. Our first step in advancing that effort was at the October 2018 Convention where we pushed the candidates for Governor on how they would close the racial homeownership gap and presented them with the Color of Law.  A few weeks after the Convention, the Baker Administration asked us to prepare a white paper outlining potential strategies for addressing this challenge. The Administration then established the Racial Equity Advisory Council for Homeownership and appointed MACDC and other housing experts to serve on the Council early in 2019.

Over the next nine months, MACDC – in partnership with many allies, has made significant progress:

  • The Legislature has increased funding available for homeownership education and foreclosure counseling from $2.05 Million to $2.85 Million in the FY 2020 budget;
  • Governor Baker has announced a $60 million new homeownership development program with the specific goal of reducing the racial homeownership gap through the development of 500 new affordable homes;
  • The Governor and the Legislature appear poised to appropriate $10 million in new money to provide down-payment assistance grants to first time homebuyers;
  • MACDC partnered with four member CDCs, Winn Companies and Compass Working Capital to secure from HUD the first in the nation CDC Collaborative to implement the Family Self Sufficiency program for CDC residents;
  • The REACH Council has adopted and is now working to implement four new initiatives designed to help people of color and others obtain homeownership, including:
    • Targeted Marketing of My Mass Mortgage and State Mortgage Products
    • Rental to Homeownership Pilot
    • Downpayment Initiative and Interest Rate Buydown
    • Relief for Borrowers with Student Loan Debt

The racial homeownership gap is the result of decades and centuries of discrimination. It won’t be easy to reverse. But we are excited by the renewed attention to this issue and the growing momentum to adopt policies, programs and funding to begin moving the needle in the right direction.

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