State Budget:  With just six weeks remaining in the current Massachusetts Legislative Session, a number of important MACDC legislative priorities are still pending.   Our key budget priority, $2 Million in funding for the Small Business Technical Assistance (SBTA) program administered by Massachusetts Growth Capital Corporation (MGCC), was included in the Governor’s and the House approved budget but not the Senate-passed budget. It must now be reconciled in a six-member House and Senate conference committee.  The Senate budget did provide $100,000 to cover operating expenses for the Massachusetts Food Trust – funds that were not provided by the House so this too must be addressed in the conference.  Further complicating the conference deliberations, the Baker administration disclosed last week that this year's state budget shortfall is larger than anticipated and estimates of revenues available for next year's budget might be off by as much as $750 million.  This news makes the budget reconciliation process even more challenging for the conference negotiators.  MACDC and its members are making their voices heard so legislators understand the importance of these programs.

Zoning Reform:  On June 9, the Massachusetts Senate passed “An Act promoting housing and sustainable development” (S.2311), by a vote of 23-15.  This is the first comprehensive zoning reform legislation to pass either the House or Senate in many decades, and we are grateful to so many of you who contacted your senators about this important legislation.

This is a tremendous victory for the Alliance and its partners, and, now, it is on to the House!

Here is a link to MACDC’s statement shared with senators ahead of the vote.

Economic Development:  On June 15, the Joint Committee on Economic Development & Emerging Technologies reported favorably H. 4413, An Act Relative to Job Creation, Workforce Development and Infrastructure Investment.  MACDC supports the economic development proposal and our members are encouraged that key policy concepts and areas of implementation and focus outlined in the bill are consistent with ideas CDCs have put forth.  These efforts are demonstrated by the multi-year funding commitments to:

• The Mass Works Infrastructure Program ($300 million)
• The Brownfields Redevelopment Fund ($45 million)
• The Smart Growth Trust Fund ($15 million)
• Transformative Development Initiative ($30 million)

The Joint Committee also included $6 million authorization over 3 years for capital expenses for the Massachusetts Food Trust – a huge win!  The bill will now go through a series of committees before it is voted on by the House and Senate and sent to the Governor. Here is our testimony to the House Committee on Bonding in support of the bill. We will need to follow the bill carefully to ensure that funding is maintained at each step along the way – as nothing is guaranteed for final passage.

Recently, the City of Boston announced the creation of the Acquisition Opportunity Program, a $7.5 million loan fund designed to keep currently-affordable rents low. LISC Boston was instrumental in the development of this anti-displacement strategy, and we applaud the City’s commitment to mitigating the impact of gentrification.

In 2014, we and the Massachusetts Association of Community Development Corporations (MACDC) formed the Gentrification Learning Community, a diverse group of residents, community development professionals, and neighborhood organizations, to study the issues causing displacement in our city. At the same time, along with our partners at The Boston Foundation and the Department of Neighborhood Development, we convened the Acquisition and Conversion Working Group, a consortium of more than 20 organizations including CDCs, funders, and city and state officials, to identify strategies for allowing low- and moderate-income people to stay in their homes.

What we found is not news. 

Skyrocketing real estate prices, an aging and inadequate housing stock, and a slower-than-average recovery from the Great Recession among minority and low-income families all contribute to the problems of gentrification and displacement. But the solutions we came up with offer real promise.

Sheila Dillon, Chief and Director of Boston’s Department of Neighborhood Development, says "Mayor Walsh has made it very clear to us that we needed to think creatively about new ways to help tenants remain in their homes --  he wants to make sure that the people who have lived in their communities for years can remain there.  ​With the help of partners like ​LISC and​ the Boston Foundation, we developed the Acquisition Opportunity Program as one way to attack this problem.  We know that it is only one tool, though, and that much more work needs to be done.  But we are excited about this pilot program, and grateful to have supportive partners to help us."

The program has the potential to prevent not only displacement, but homelessness as well. It will also allow workers to remain near their jobs, and children to stay in their neighborhood schools.

Perhaps most important of all, when people can stay in the homes they’ve chosen, the fabric of community remains woven tight: Neighbors look out for their each other and their neighborhoods, helping to keep everyone safer, healthier, and happier. And that is an outcome that LISC believes everyone deserves.

Research has shown a powerful link between  children’s exposure to homelessness and their long term health: children exposed to homelessness are several times more likely to be hospitalized and face more mental and physical health issues later in life than those with stable homes. In order to confront both the health and housing needs for families who are currently homeless or at risk of homelessness, the Boston Foundation piloted its Health Starts at Home initiative with four planning grants this year. Four MACDC members- The Neighborhood Developers, Nuestra Communidad, Urban Edge and Metropolitan Boston Housing Partnerships are involved in three of the projects in coalition with other healthcare and social service organizations. The projects use diverse strategies to link housing to healthcare: Urban Edge and MBHP are working with partners to connect families sheltered in a motel in Waltham to long-term housing and healthcare support while TND and MBHP are creating a referral system through MGH Chelsea so families who come to the hospital in need of social services can be referred to TND’s robust CONNECT program that links families to needed housing, jobs and benefits.

The planning grant was an important learning opportunity for both the Boston Foundation and the involved organizations to learn how disparate sectors, such as community development and healthcare, could work together to have a collective impact.

“A lot of organizations talked about wanting to work together, but not having the funding or the space to do that” said Pamela Hung, Program Associate in Health at The Boston Foundation.

The planning grants allowed the participating organizations to learn one another’s “language” and learn about one another’s programs and how they could be aligned. From these learnings, the groups created integrated service delivery models and two of the projects started to pilot their models to see what worked and what could be improved. All of the groups also created robust data collection and outcome systems in partnership with Health Resources in Action and the Urban Institute to evaluate the impact of the program on child health.

For the next three years, the projects have been given implementation funding to pilot the programs and evaluate their outcomes. The Boston Foundation hopes that the learnings from these initial pilots will lead to a larger policy change in how healthcare and housing programs are linked.

“Our ultimate goal is that the best practices and models uplifted through Health Starts at Home will lead to  systemic changes in housing and health care funding.” Said Lucy Ellis, Program Associate in Neighborhoods and Housing at The Boston Foundation. 

Almost 50 people, representing more than 20 MACDC Member organizations, joined Attorney General Maura Healey and members of her senior staff in Worcester on May 20, to discuss how to collaborate on tackling some of the most serious housing problems facing our communities.

The welcoming remarks from the Attorney General, who noted that her office strives to be “The People’s Law Firm”, were inspiring.  She commended the “righteous work” done by CDCs, and noted the importance of work that takes care of us all.  After other senior officials from the AG’s office (AGO) gave an overview of the AG’s initiatives (AGO 101!), we got down to the morning’s hard work- breaking into smaller groups, co-led by AGO staff and CDC leaders, to discuss three topics: foreclosure prevention, abandoned and distressed properties, and fair access to housing.

Foreclosure Prevention:

Foreclosure counselors noted that foreclosures are still prevalent, despite a common perception that the crisis is over.  Some people with prior mortgage modifications are in trouble again due to unemployment or other economic problems, and counselors note that some loan servicers are not responding adequately to their efforts to help homeowners in trouble.  There is a concern that many struggling homeowners are not reaching out to counselors who can help them, matched by a concern that if more people reached out to counseling agencies, the agencies may not have the staff capacity, or financial resources, to meet everyone’s needs.  Counselors indicated they would like to work more closely with the Attorney General’s office, and AGO staff said that they are available to assist and to intervene with servicers who are not being responsive.  All agreed that resuming monthly conference calls with the AGO would be helpful.

Distressed Properties:

Representatives from the AG’s Abandoned Housing Initiative (AHI) described two programs they administer.  AHI, which was formed in 2008, offers loans and grants to communities that address abandoned properties through Receivership, whereby a Court-appointed receiver can assume management of distressed properties, conduct repairs, and place a lien on the property to cover the costs.  More recently, the AGO started a Strategic Demolition Fund, which has provided $125,000 to each of four agencies statewide to make funding available to communities to help with demolition of properties that are bringing down neighborhoods.  Participants also noted the importance of collaborating on identifying the best strategies for addressing distressed properties.

Fair Access to Housing:

CDC leaders and AGO staff discussed the many obstacles to building affordable housing in suburban towns, including low density zoning, lack of infrastructure, unreasonable water and sewage requirements, changing political leadership and abutter lawsuits.  Participants agreed that the AGO could be helpful in educating municipal leaders about their responsibilities under the Fair Housing Act as a way to discourage the most egregious practices. There was also a brief discussion about the common practice among property insurance companies in Massachusetts of charging higher premiums for properties with Section 8 tenants – or denying coverage all together.  AGO staff expressed concern about this practice and MACDC agreed to provide them with more information.

After the breakout sessions, participants reconvened as a group to share what was discussed.  The AGO and MACDC are planning how to follow up on the issues identified on May 20.  Together, a community-minded Attorney General and community-based development organizations make a powerful team for tackling community problems.

A new report released by the Massachusetts Community & Banking Council (MCBC, a coalition of community-based organizations and financial institutions), “CRA for Mortgage Lenders in Massachusetts, 2008-2015” highlights that community reinvestment regulation seems to have had a positive impact on the relative performance of Licensed Mortgage Lenders (LMLs) in meeting the needs of traditionally underserved borrowers and neighborhoods.  In the first report of its kind, MCBC provides information on the state law passed in 2007, which mirrors existing federal and state CRA requirements over depository institutions and calls for lenders to meet the credit needs of low- and moderate-income borrowers and geographies when originating residential loans or acquiring mortgage portfolios in the Commonwealth.

MCBC issued a press release on the issuance of the report:  http://mcbc.info/wp-content/uploads/2016/05/CRA-for-Mortgage-Lenders-in-Massachusetts-2008-2015-Press-Release-5.17.16.pdf  The full report can be accessed at http://mcbc.info/wp-content/uploads/2016/05/CRA-for-Mortgage-Lenders-in-MA-2008-2015-Final.pdf

The Report and News Release are also available on MCBC’s website at http://mcbc.info/publications/mortgage-lending/.

 If you have any questions or want more information on MCBC or the report, please contact Dana LeWinter, MCBC Executive Director, at (800) 982-8268 or via e-mail at dlewinter@mcbc.info.

MACDC is pleased that this law, passed in response to the foreclosure crisis as a result of the advocacy of MACDC and other organizations, has had such a positive impact.

The United States has the most expensive healthcare system in the world, and yet in terms of actual health outcomes the United States is ranked near the bottom compared to other developed (OECD) countries. Why is this the case? While there are many problems with our healthcare system, one of the major culprits is lack of spending on social services, according to Elizabeth Bradley and Lauren Taylor authors of The American Healthcare Paradox. On average, other developed countries spend $2 on social services for every $1 spent on healthcare. The United States, by contrast, spends only 55 cents on social services for every $1 spent on healthcare. Additionally, the authors found that increased spending on social services was positively correlated with better health outcomes among all the OECD countries (http://academyhealth.org/files/2013/sunday/bradley.pdf).

Thankfully, both health policymakers and healthcare administrators are beginning to embrace that health is ensured not by only pills and procedures but also by access to safe and stable housing, living wage employment opportunities, financial stability and safe neighborhoods.  They are beginning to find ways to redirect their resources in order to address the structural inequities of communities that lead to poor health. Here are three examples:

1.Community Benefits Plans- The Affordable Care Act now requires all non-profit hospitals to conduct community health needs assessments and come up with community health improvement plans to address health needs in surrounding communities. Some hospitals are using those plans creatively to meet community needs. For instance, Dignity health a network of nonprofit hospitals serving California, Arizona and Nevada has created a $100 million loan fund to develop affordable housing, provide job training, assist neighborhood revitalization and build wealth in neighboring communities. However, there are no strict guidelines for the kinds of activities that can be funded by these community benefits plans, and therefore there is wide variation among hospitals.

All Massachusetts nonprofit hospitals publicize their community benefits plans in the Annual Reports section of the Massachusetts attorney general’s website. Community organizations can explore these reports to see what their local hospitals are currently doing and use them to advocate for more creative and impactful programs.

2.Anchor Institution Models- Some hospitals and healthcare systems are realizing that as nonprofit institutions whose missions are to improve health and wellbeing, they have to go above and beyond the IRS community benefits mandate to adequately address the root cause of poor health in their local communities. Kaiser Permanente, the nation’s largest nonprofit integrated health system with operating revenues over $56 billion dollars, is using a concept called “total health” to guide all its non-clinical practices towards promoting health broadly including physical, mental and spiritual well-being, that account for “resilience” factors not traditionally considered by medicine such as people having a sense of purpose, belonging and self-efficacy.  They are intentionally hiring from low income census tracks in their service area, sourcing their food from local farmers, purchasing supplies from woman and minority owned businesses and are also using their investment capital to invest in local housing and economic development. As a leading healthcare system, Kaiser is setting an example for the whole country for how nonprofit hospitals can most effectively and holistically deliver on their mission to promote health and save lives.

3.Accountable Care Organizations-  As a part of Medicaid reforms, some states are authorizing Accountable Care Organizations (ACOs) as new Medicaid delivery systems. ACOs are integrated health delivery organizations that receive a standard payment per member, and then use the combined funding to both pay for healthcare services and coordinate the prevention services for the members. ACOs can keep a share of any money saved, so they are incentivized to invest in creative solutions that improve health and reduce costly treatments.  In Hennepin County, Minnesota, the Hennepin Health ACO found that 30% to 50% of its members were unstably housed or homeless, leading to serious health problems. The ACO worked with local supportive housing providers to pay for room and board in supportive housing units for some of their members. Using savings from the ACO as a result of this program, Hennepin Health was able to invest in social service navigators who help members with housing and other needs.

Five Pioneer Accountable Care Organizations were set up in Massachusetts in 2012-13, and four of five were able to use the model to cut spending.  Learn more about states that have supported social services through their ACOs in this report.

4. Determination of Need Community Health Initiative- Here in Massachusetts, any hospital expanding their services, undergoing extensive capital expenditure or starting a large solicitation process must undergo a Determination of Need process (DoN) process through the state in order to prevent excessive spending on healthcare. Approved projects must allocate at least 5% of the funds to “provision of primary and preventive health care services necessary for underserved populations in the project’s service area” through the Community Health Initiative. As a part of their CHI, Brigham and Women’s hospital (BWH) has released an RFP for 10 Health Equity grants of $20,000 to $100,000 to promote community psychological health and wellbeing, strengthening employment and job skills opportunity as well as addressing health inequity issues with a racial equity lens. Through these grants, BWH is setting an innovative standard for how hospitals can use community health funds from a DoN process.

All of these hospital and healthcare organizations rely heavily on partnerships with community organizations to identify needs and support investments in the housing, workforce development, local businesses and local neighborhoods. Community organizations in Massachusetts have the opportunity to identify and reach out to the community engagement coordinator at their local hospital to find out how they can better partner to improve health and wellbeing in communities.

The Massachusetts Office of Consumer Affairs and Business Regulation’s Division of Banks (DOB) announced recently that it has awarded $1.3 Million in grants to 11 regional foreclosure prevention centers and 8 individual first-time homeownership education centers across Massachusetts.  For a list of the grantees and the awards, see the Office of Consumer Affairs website.

The awards are made under Chapter 206 of the Acts of 2007, a law enacted as the foreclosure crisis was gaining steam, with MACDC and its Members instrumental in drafting and passing the legislation. Among other things, it regulates non-bank mortgage lenders for the first time, and uses the licensing fees from mortgage originators to fund the foreclosure prevention counseling and homeownership education awards.  Over the past three years, DOB has provided more than $4 Million for foreclosure prevention counseling and homebuyer education.

Thirteen of the 19 awards were made to MACDC Members or to coalitions including MACDC Members. In fact, over a five year period ending in December, 2015, MACDC Members have helped close to 6,700 households facing foreclosure secure a loan modification or other positive outcome.

Unfortunately, foreclosures continue unabated.  Foreclosure petitions in the Bay State, the first step in the foreclosure process, continued to climb, according to a report from The Warren Group, publisher of Banker & Tradesman.  In the first three months of 2016, lenders filed 3,367 petitions to foreclose statewide, a 30% increase from the 2,594 petitions filed in the first three months of 2015. During the same time period, completed foreclosures increased by 60% from the first three months of 2015.

MACDC will continue to support our Members, as they strive to help current homeowners preserve their homes and provide future homeowners with the tools for enjoying sustainable homeownership.  MACDC is currently advocating with the Legislature to increase in the amount of revenue from mortgage originator fees the DOB is allowed to retain, so DOB can increase the awards to fully fund the counseling agencies at $2 million in 2017. This would enable DOB to provide the funding level originally authorized in the 2007 legislation.

For more information on this, please contact Don Bianchi at donb@macdc.org.

MACDC Members Come Together for Annual Lobby Day at the State House

MACDC Members from across the state traveled to the State House on Tuesday, May 3 for our annual Lobby Day, urging legislators to support funding for small business development, foreclosure prevention counseling and housing programs, while also pressing for passage of strong economic development legislation.  This year’s event was a bit different than in the past, with the Luncheon Program dedicated to briefing legislators on the success of the Community Investment Tax Credit Program.  Senator O’Conner Ives, co-chair of the Jt. Committee on Community Development and Small Business, hosted the CITC briefing, which included remarks by Chrystal Kornegay, Undersecretary of the Department of Housing and Community Development, Joanne Campbell of Valley CDC and Jess Andors of Lawrence Community Works. 

Lobby Day also provided an opportunity for the MACDC Board to meet directly with Governor Charlie Baker.  The meeting provided MACDC with an opportunity thank the Governor for his support of many MACDC priorities and to briefing him about the success of CITC.  Our discussion also focused on his economic development legislation, the Massachusetts Food Trust program, and the need to support both community scale rental housing and new homeownership development.

Residents at Harborlight House in Beverly resoundingly said, “we want to stay,” as the facility faced increasingly difficult financial circumstances and the need for significant rehabilitation.  Harborlight Community Partners set out to not only preserve the affordability of Harborlight House, but also improve it to better accommodate the needs of an increasingly frail population. Last year, Harborlight House received a $4 million tax-exempt bond to renovate the House’s 30 units as well as ensure each unit’s affordability for another 30 years.  But the CDC is trying to provide more than just an affordable home.

Harborlight Community Partners developed an integrated services and housing model that ensures seniors are able to age in place, maintaining their independence as long as possible while accessing needed medical services.  Thanks to the renovations at Harborlight House, seniors will now have better and more accessible units, with the addition of their own kitchenettes.  At the heart of Harborlight House, common areas and a porch allow for people to gather, and the dining room is being expanded to safely accommodate the mobility equipment of residents.  Seniors also have in-house care service, thanks to a partnership with Element Care and Associated Home Care.
 
Furthermore, Harborlight Community Partners supports a newly formed residential advisory council that can provide feedback on program operations as well as advocating for affordable housing across Harborlight’s service area, which spans from Lynn to Rockport.  The goal is to build relationships and partnerships that will lead to a more holistic approach to low-income elder housing on the North Shore.

Fundamentally, what unites Harborlight Community Partners’ work is a deep commitment to dignified and well maintained housing that engages elders and creates meaningful and sustainable opportunities for low-income people.  In fact, they are looking to expand their affordable housing model across their service area.  As affordable housing for our communities’ elderly becomes an increasingly critical issue, Harborlight Community Partners plans to work with MACDC and others to spread this model across the Commonwealth and beyond. 

Check out the complete 2016 GOALs Report and past GOALs Reports

From its beginning nearly 50 years ago, a core goal of the community development field was to attract investment capital into places and for people historically excluded, or worse, harmed by traditional capital streams and financial products. Over the years, CDCs developed the expertise to put capital to use in low-income neighborhoods to build housing, to start local businesses, to help first-time homebuyers secure safe mortgages, and to help low-income families begin to save money and build assets that can propel them forward. To do these things well, of course, CDCs need capital and investment to establish the professional expertise necessary to wisely attract and deploy capital in the neighborhoods and towns across the Commonwealth.

In 2012, the Community Investment Tax Credit (CITC) was enacted to do just that, by spurring more private support for CDCs.  The CITC, which offers donors a 50% refundable state tax credit for donations made to participating CDCs, was launched in 2014 and has already resulted in significant new funding for CDCs, which is building capacity and increasing our impact.

In 2014, the CITC program generated $4.7 million and last year the number grew to $8.3 million, making it the largest CDC capacity building program in Massachusetts history.  Last year, over 1,500 donations were made to 48 organizations, with more than 1,000 of them coming from individual donors. Indeed, individuals gave $3.2 million to CDCs in 2015.  Prior to the CITC, most CDCs received very few donations from individuals, relying instead on earned revenue, along with government, foundation, and corporate funding.  CITC is enabling us to diversify our funding, build new partnerships with individuals and local businesses, and leverage greater impact for the community. 

The program has been a win-win for donors and CDCs alike. For Joanne Campbell, Executive Director of Valley CDC in Northampton, “The CITC Program has been a great success in building our capacity as a CDC.”  And in the words of one donor, “It was 
very enticing, and I have to say I feel great about how far the dollars for an individual donor can get stretched.”  Said another, “it made sense to invest locally!”

We could not agree more. 

Check out the complete 2016 GOALs Report and past GOALs Reports