On a warm, sunny morning in late September, approximately 35 people gathered to celebrate the Open House for Westhampton Woods, Phase II, a 8-unit affordable housing development for seniors in the hilltowns of Western Massachusetts. Sponsored by Hilltown CDC, the construction of the second phase is the culmination of a community effort that began in 2000 when local residents, organized through the Westhampton Congregational Church, approached Hilltown CDC for assistance. The success of Phase I, completed in 2005, led to development of this second phase, bringing the total number of homes on this lovely wooded site to 15.

The successful development of any affordable housing in Massachusetts is challenging. Land suitable for building can be hard to find, restrictive zoning laws can be a barrier, and sponsors must often queue up through several competitive funding rounds to access the subsidized funds required. The development of rural housing adds an additional layer of challenges and impediments, especially in a town like Westhampton, which has fewer than 2,000 residents. Municipalities typically have limited capacity, and few dollars to contribute. Rural areas lack the infrastructure (water, sewer, and roads), and the market rents in these areas tend to be lower. Rural projects tend to be smaller so that they can adhere to the rural character of the town in which they are located and because neither the community nor the market will support a large, dense development. While smaller projects can have some advantages (such as faster permitting and wood-frame construction) they lack certain economies of scale. More significantly, low income housing tax credits - the primary source of subsidizing affordable housing in MA- are simply not an available source for small projects.

Yet affordable housing is urgently needed in all communities in Massachusetts, including rural communities. Rural communities face a range of housing challenges from decreasing and aging populations, an aging housing stock and, in some regions, high demand pressures from second home buyers. Incomes in rural areas tend to be lower, exacerbated by limited or no access to public transportation and few employment opportunities, and rental housing in some communities is almost nonexistent.

MACDC has joined an effort initiated by the Massachusetts Housing Partnership (MHP), a quasi-public agency, to take on the challenges associated with rural housing in Massachusetts. MHP has brought together CDCs and other nonprofit organizations, State agencies, regional planning agencies, and local officials to identify and advocate for strategies to address these challenges. We expect recommendations to be forthcoming this fall, to the incoming Governor and to the MA Department of Housing and Community Development (DHCD).

Despite the challenges, we gathered to celebrate Westhampton Woods. This was especially exciting for me, as I was the Housing Director at Hilltown CDC in 2000 when the residents approached the CDC and asked for help in developing senior housing. I can vividly recall those early meetings in the Church basement, where all we had was the “who” (local volunteers and a responsive CDC), the “what” (senior housing), and the “why” (seniors who could no longer maintain their homes had nowhere in town to go), but no idea of the how and the where and the when. On this bright September day almost 15 years later, at 13 Main Road in Westhampton, those questions were answered.

The challenge facing the Commonwealth of Massachusetts now is to provide a path to answering these questions for more rural residents. At the Westhampton Open House, DHCD Undersecretary Aaron Gornstein noted the importance of housing options for seniors, and pledged DHCD’s support for smaller-scale rental projects. Rita Farrell from MHP added that this was a model they would like to see replicated in many rural communities. When support from State agencies is combined with resident initiative and a capable nonprofit developer, our Commonwealth has the potential for many more celebrations like the one in Westhampton.

On November 4th, Massachusetts voters will decide on a statewide ballot question that would eliminate a portion of the gas tax.  If Question 1 passes, it would be a step backwards, causing our roads, bridges, public transportation, bikeways and sidewalks to fall into further disrepair.  It will threaten the gains we’ve made towards a sustainable, healthy, and equitable transportation system.

We urgently need your help for NO on Question 1.

As you read this, more than half our bridges are deficient, unsafe or even closed from the Cape to the Berkshires.  Recent reforms and revenues have finally put us on the right track - but Question 1 would derail us, hurting our economy and compromising our safety.

Question 1 would eliminate a law that links the state gas tax to inflation. This transportation funding from gas tax indexing is constitutionally protected for transportation.  

To help grow the campaign to defeat Question 1, please do these things today:

1. Spread the Word.  Please share this information with your friends, family, neighbors, and colleagues.

2. Sign up for updates.  Visit saferoadsbridges.com

3. Follow this campaign on Twitter @VoteNoOnQ1 and  #NoOnQ1MA.

We urge you to join us and vote NO on Question 1 on November 4^th!

For the past year, MACDC’s Boston Committee has been working with the Massachusetts Minority Contractors Association (MMCA) to sponsor the Boston Pilot Program, a joint effort to help six Boston CDCs increase their utilization of minority and women owned enterprises (M/WBEs) on 11 separate real estate projects across the City of Boston.   The program established the goal of ensuring that at least 30% of the work was done by MBEs and 10% by WBEs.  As of June 30, six of the projects were in construction and the other five were in various stages of pre-development. So far, the projects have contracted for slightly more than $95 million in hard and soft costs, with 36% of the total going to MBE’s, 9% going to WBE’s, with a total of 41% going to either a MBE or WBE (the numbers do not add up because we do not double count minority-women-owned businesses).  This means that the CDC-sponsored projects have generated a total of nearly $39 million in economic opportunity for minority- and women-owned businesses, with much more to come as these projects continue to move forward.  Working with MMCA, we will continue to try to hit the 10% goal for WBE participation and try to increase the MBE numbers for soft costs where the percentage is much lower (MBE’s earned 41% of the hard costs, but just 13% of the soft costs; WBE’s were at 9% for both hard and soft costs).

Recently, the Massachusetts Department of Revenue finalized its regulations for the Community Investment Tax Credit (CITC) program. These regulations define qualified donations (investments) to a Community Development Corporation or the Community Partnership Fund. The regulations also explain the benefits of the program and highlight some important key points for donors:

• Donors can choose to donate directly to a CDC designated as a community partner (i.e., a CDC with tax credits to allocate to donors) or they can choose to donate to the Community Partnership Fund, for which the United Way of Massachusetts Bay provides administrative support.
• Donors do not need to live in Massachusetts or have any Massachusetts income tax liability in order to make a donation and receive the tax credits. If a nonresident makes a qualified donation, he or she can file a MA nonresident tax return to claim the refund.
• Nonprofits registered as 501c3 organizations may contribute to a community partner and receive a tax credit (if the organization has unrelated business income) or a refund.
• Contributions to CDCs through a Donor-Advised Fund (DAF) are allowed. However, the tax credit or refund would be applied to the nonprofit or foundation administering the DAF, not the individual or family who established the DAF. The nonprofit or foundation managing the DAF can put the money back into the DAF, but cannot give it back to the individual or family that set up the account.

Please make sure you consult your tax advisor.

For more information on the CITC program, please visit MACDC's CITC website.

The Community Development Partnership (CDP) recently announced the launch of the first ever Winter Farmers’ Market on the Lower Cape, which will open in December. The Orleans Winter Farmers’ Market will take place at the Nauset Regional Middle School on the first and third Saturdays of the month from 10 AM to 12 Noon, beginning on Saturday, December 6th and ending April 18, 2015. A project of the CDP, the Market is offered with support from the Orleans Winter Farmers Market Advisory Committee and made possible by financial support from the USDA Rural Development Program and the Cape Cod Economic Development Council.

CDP made the announcement in preparation for National and Massachusetts Farmers’ Market Week, commemorated from August 3rd to August 9th. This year marks the 15th annual National Farmers' Market Week, recognizing the important role that farmers’ markets play in the agricultural and food economy. The U.S. Department of Agriculture began declaring a National Farmers Market Week in 2000. Since then, the number of Farmers’ Markets nationwide has almost tripled, from 2,863 markets in 2000 to 8,144 in 2013. Massachusetts has seen similar growth, now counting more than 250 markets across the Commonwealth. Cape Cod has 17 markets open this summer, which is more than double the number of markets from six years ago and its greatest number of markets ever. 

“Farmers’ Markets have a long history of fueling economic development and adding vitality to the communities in which they are held,” said Jay Coburn, Executive Director at the CDP. “We are incredibly excited to be working with local growers and food producers to help them grow their businesses and create opportunities for year-round sales. And we can’t wait to show Lower Cape residents that it is possible to grow fresh and nutritious food on Cape Cod 12 months of the year.”

Wellfleet Farmers’ Market Co-founder and member of the Orleans Winter Farmers’ Market Advisory Committee, Tracy Plaut, commented about the new Market, "Being able to supply fresh, locally raised food to the community keeps our friends and neighbors healthy, as well as building a strong and vital economy. It's a pleasure to support the ever-growing number of farmers who make their living while facing the many challenges of growing on Cape Cod."

Applications are still being accepted for vendors interested in participating in the Orleans Winter Farmers’ Market. Market vendors will also have access to business workshops targeted to growers and producers, as well as individualized technical assistance. More information for vendors and the Public is available at the CDP’s website. Information will be updated over the next few months, including participating vendors, featured musicians and special Market demonstrations.

The Community Development Partnership (CDP) nurtures a vibrant Lower Cape region – Brewster, Chatham, Eastham, Harwich, Orleans, Provincetown, Truro and Wellfleet - by promoting environmental and economic sustainability, expanding opportunities for low- and moderate-income residents, and preserving our unique cultural and historic character. 

On Wednesday, July 23rd, MACDC's President Joe Kriesberg sat down for an interview with Govenor Deval Patrick to talk about the Community Investment Tax Credit, why he signed into law this program and why CDCs are so important to all communities across the Commonwealth.  Check out the complete interview below!

CLICK HERE to view video.

In a recent article, Accounting Management Solutions (AMS) offers advice to  CDCs expecting donations through the CITC program. According to AMS, organizations should be careful not to count the tax credits themselves as revenue. Until an organization receives a contribution for which tax credits are issued to the donor(s), the revenue is still considered conditional; once a donor exchanges their donation for the tax credits, then revenue can be recognized and counted.  To read the full AMS article, click here.

AMS is a leading resource for outsourced accounting and financial management services in Boston and New York City. 

Massachusetts Governor Deval Patrick released his capital budget for Fiscal Year 2015, and the Housing Capital Budget is increased by $11 million over the FY14 amount, now totalling just over $190.5 million. The capital budget for privately-produced housing (not including public housing) is now at just over $100 million, the first time it has reached this milestone in the eight years of the Patrick Administration. This is good news!  

For FY15, there are significant increases for the Housing Stabilization Fund, the Housing Innovations Fund, the Facilities Consolidation Fund, and the Home Modification Fund. MACDC, in collaboration with CHAPA and our allies in The Building Blocks Coalition, have long advocated for an increase in the Capital Budget and we are very pleased to see such a significant increase this year. It will directly result in the production of more housing for families who desperately need it.

Click here for a spreadsheet with the detail of the FY15 budget, along with a comparison of how the housing capital budget has varied over the past eight years.

On June 26th, Harvard University's Joint Center for Housing Studies (JCHS) released the 2014 State of the Nation's Housing report, during a live webcast. The report, released annually by JCHS since 1988, includes a current assessment of the state of the rental and homeownership markets; the economic and demographic trends driving housing demands; the current state of mortgage financing; and issues with ongoing housing affordability. 

According to the report, the housing market is still on track to recover, but faces significant challenges, and millenials will be the key to a stronger recovery. Overall, the housing market's growth and improvement mirrors the broader economy: slow and steady. Among the key points highlighted in the report:

• Tight credit, higher mortgage interest rates, stagnant incomes and rising student loan debt are tempering the growth of the housing market and keeping many young Americans from purchasing a home.
• As millenials age, the demand for housing should grow, and the next generation of homebuyers will be the most diverse in the nation's history, as miniorities represent a growing share of the homebuyer market. 
• Demand for rental housing remains strong, with an increase in the development of rental properties, but the cost burdens of housing are particularly high for renters. More than 35% of Americans are cost burdened when it comes to housing, meaning they spend more than 30% of their income on housing costs. Approximately 50% of renters, however, are cost burdened, with nearly a quarter of renters severely burdened (paying more than 50% of income on housing).
• Supplying housing for low-income and extremely low-income families continues to be a challenge. The primary barrier for these families is availability - there is a significant gap between the number of low-income and extremely low-income families needing a home and the number of affordable homes available to them. 

The full report, with all the data and conclusions, along with an executive summary and interactive maps, are available on JCHS's website. The State of the Nation's Housing report has earned national recognition as an authoritative source of information on the housing market, routinely referenced by researchers, analysts, policy makers, and the larger community.