- The Small Business Technical Assistance (SBTA) program's funding increased by 50% from $2 million in FY19 to $3 million in FY20. Additional funding will support new businesses, new jobs and the overall increased economic stability in neighborhoods and towns across the Commonwealth. To learn more about the program and the powerful results for which it's noted, go to MGCC's website;
- Chapter 206 funding available to the Division of Banks was increased by 40% to $2.805 million. This program supports nonprofit housing counseling services that provide homebuyer education and foreclosure prevention counseling;
- Neighborhood Stabilization Initiative: A new $750,000 capacity-building program through MassHousing and MassDevelopment, in coordination with MACDC and MassINC. This program will help local governments and community partners implement neighborhood-level revitalization efforts to address vacant and abandoned properties in Gateway cities and rural areas and convert these buildings into homeownership opportunities and rental housing. Check out the study released this past January by MassINC and MACDC "Building Communities of Promise and Possibility" upon which this recommendation was drawn;
- CPA Trust Fund: Most recording fees at the Registries of Deeds will be increased from $20 to $50, which would raise an estimated $36 million in additional annual revenue for CPA beginning in 2020, and increase the CPA match for all 175 CPA communities to approximately 30%. The Conference Committee also agreed to language that will authorize up to $20 million from the state's budget surplus to expand the November 2019 distribution. CPA exclusively supports the creation of affordable housing, preservation of historical sites, open space preservation, and development of recreational facilities.
On July 9, Governor Baker, joined by Undersecretary for Housing and Community Development Janelle Chan, and MassHousing Executive Director Chrystal Kornegay, announced $86 million in new funding to expand the Administration's Workforce Housing Initiative, including $60 million to support homeownership and help to narrow the racial homeownership gap. About 500 new workforce homes, i.e. affordable housing that would be in close proximity to the workplace, for moderate-income, first-time homebuyers will be created, along with an additional 260 new workforce rental units.
On July 18, Mayor Marty Walsh announced that the Barriers to Homeownership Working Group, in a partnership with the Massachusetts Affordable Housing Alliance (MAHA) and the Greater Boston Interfaith Organization (GBIO), worked to create the ONE+Boston mortgage program, which will be launched this fall. The new program, offered by the Massachusetts Housing Partnership (MHP), is intended to make progress on the original ONE Mortgage program and aims to permanently buy down interest rates for first-time home buyers earning less than $90,000 in a two-person household, which in turn will create more opportunities for low- to middle-income families to buy a home.
On July 18th, Governor Baker and other officials announced the award of $80 Million in subsidy funding, as well as state and federal tax credits that will generate more than $260 Million in subsidized private equity, for the development of affordable rental housing. When completed, these 28 projects will create or preserve 1,581 homes, including 1,349 affordable units, with 273 of these affordable units reserved for extremely low-income households.
The developments awarded funding include 12 projects sponsored by MACDC Members, resulting in the creation or preservation of 500 homes, including 467 affordable units:
Nuestra Comunidad’s Bartlett Station Building A, part of a multi-phase redevelopment of a former MBTA lot in Boston’s Roxbury neighborhood, will offer 42 newly-constructed rental units, including 30 affordable units.
Dorchester Bay EDC will renovate 56 affordable units at Dudley Terrace Apartments in Boston’s Dorchester neighborhood.
Urban Edge’s Holzer Park, a transit-oriented development in Boston’s Jamaica Plain neighborhood, will involve the new construction of 62 units, including 54 affordable homes.
Lena Park CDC, in partnership with the New Boston Fund, will newly construct 47units- including 40 affordable units- as Olmsted Green Rental Phase IV, one of the final phases of the redevelopment of the former Boston State Hospital in Boston’s Mattapan neighborhood.
Mission Hill NHS will newly construct 46 units, including 43 affordable homes, as Parcel 25 Phase 2, in Boston’s Mission Hill neighborhood.
The Neighborhood Developers were awarded funds for two new construction projects for low-income seniors, with services, in Everett: St. Therese Condo 1 (44 affordable units), and St. Therese Condo 2 (33 affordable units).
North Shore CDC is developing Harbor Village, a mixed-use project in Gloucester which will offer 30 affordable units.
The Women’s Institute is newly constructing 30 affordable units in Sandwich at Terrapin Ridge.
B’nai B’rith Housing New England is redeveloping a vacant elementary school in Swampscott into 38 affordable homes at Senior Residences at The Machon.
Berkshire Housing Development Corporation’s Cole Avenue project will consist of is constructing 41 newly constructed units, including 38 affordable units, on a town-owned, former industrial site in Williamstown.
Worcester Common Ground’s 126 Chandler project in Worcester will combined adaptive re-use of a long-vacant mill building and new construction to create 31 affordable homes.
In order to receive a funding award, each CDC had to demonstrate its capacity, which has been enhanced through the Community Investment Tax Credit Program. When coupled with the subsidy resources necessary for affordable housing development, these CDC projects will provide high-quality homes for 500 families and seniors for many years to come.
MACDC Announces Eastern Bank to Award $250,000 in Grants for CDCs Through the Community Investment Tax Credit ProgramJuly 1st, 2019
The Massachusetts Association of Community Development Corporations (MACDC) has announced that Eastern Bank has renewed its commitment to the Community Investment Tax Credit (CITC) program by pledging $250,000 in grants to participating Massachusetts Community Development Corporations (CDCs). The announcement was made by Quincy Miller, Vice Chair and President of Eastern Bank, at the 10th Anniversary Celebration of the Mel King Institute on June 25th at the Boston Park Plaza. Eastern Bank was the Presenting Sponsor of the event. This is the fourth consecutive year the Eastern Bank Charitable Foundation is awarding grant funding to the CITC program. Since the inception of Eastern Bank’s participation in the program in 2016, the bank will have contributed more than $1 million in grants to organizations participating in the CITC program.
In 2018, Certified CDCs in Massachusetts, which include all organizations participating in the CITC program, accomplished the following:
- Homes Built or Preserved: 1,535
- Job Opportunities Created or Preserved: 4,305
- Entrepreneurs Provided Technical Assistance: 1,369
- Families Supported with Housing, Jobs or Other Services: 84,224
- Community Leaders Engaged: 1,910
- Investment in Local Communities: $801.5 million.
“Affordable housing and community development create pathways to prosperity, and Eastern Bank is committed to standing alongside the leaders and organizations advocating for these issues,” said Miller. “Thank you to the CDCs who are doing incredible work in Boston and across the Commonwealth in creating new opportunities for all, and congratulations to the Mel King Institute on celebrating 10 years of leading our neighborhoods in community building.”
The CITC program provides a 50% refundable state tax credit for donations of $1,000 or more to participating CDCs. Because the donation is refundable, organizations, such as foundations and donor advised funds, can support CDCs across Massachusetts through the program as well as individuals and businesses. CDCs can apply for an Eastern Bank grant at www.easternbank.com/foundation.
Over three days last week, the Massachusetts Senate debated its FY2020 budget, and while they approved several important priorities for housing and community development, they set aside or rejected many of MACDC’s key budget priorities.
As a reminder for you, in April the House voted to increase funding for the Small Business Technical Assistance (SBTA) program to $3 million, and we asked the Senate to increase funding to $4 million to meet the existing demand for program resources. (The Senate Ways and Means proposed level funding of $2 million, as did Governor Baker.) Senator Diana DiZoglio offered an amendment to increase SBTA program funding to $4 million, which was defeated by voice vote. We will work to secure the funding of $3 million when the Conference Committee (composed of six legislators – three from each chamber who meet to reconcile budget funding and policy differences) begins its deliberations in June.
The House added $750,000 to Mass Development’s Transformative Development Initiative (TDI) line item for a neighborhood stabilization initiative for a total of $1 million. Specifically, the House “provided, that $750,000 shall be expended on a neighborhood stabilization initiative to assist local governments and their non-profit partners to implement strategic neighborhood revitalization initiatives; and provided further, that the Initiative shall be developed in consultation with the Massachusetts Association of Community Development Corporations, and the Massachusetts Institute for a New Commonwealth, Inc. and shall focus on identifying and implementing strategies for reclaiming vacant, abandoned and blighted properties and restoring them to productive use as homeownership opportunities or rental housing, as well as on capacity-building at the local level to address this need.”
Senate Ways and Means had proposed level funding ($250,000) and Senator Brendan Crighton offered an amendment to restore the $750,000 and the language above to conform to the House passed provision. The Senate rejected the Crighton amendment and we will seek the House approved language when the Conference convenes in June.
The House provided level funding ($2.05 million) for the Chapter 206 funding from the MA Division of Banks (line item 7006-0011) to enable homeownership education and foreclosure prevention counseling, consistent with MACDC’s request, what Governor Baker proposed, and what Senate Ways and Means has proposed. It was pleasant surprise – and an added bonus – when Sen. Jamie Eldridge offered, and the full Senate adopted, an amendment to increase this line item by $800,000, and we will work to retain this higher level funding in the Conference report.
he House adopted a proposal to raise the deeds recording fees from $20 to $50 to improve the state’s match to communities from the CPA Trust Fund and the Senate adopted (by unanimous record vote) an amendment by Sen. Cynthia Creem to mirror the House proposal. MACDC has long supported Sen. Creem’s legislative efforts to increase these deeds recording fees, and we were pleased that the Senate adopted this amendment, as well as an amendment by Sen. Bruce Tarr to authorize up to $20 million of FY19 budget surplus to be transferred to the CPA Trust Fund to alleviate an expected 2019 CPA Trust Fund shortfall.
Finally, we were very pleased that Senators Cyr and DiZoglio agreed to offer an amendment to provide $5 million to recapitalize the Get the Lead Out Loan Program. Early in the week, Sen. Cyr decided he would withdraw this amendment from the budget debate, based upon discussions with leadership and staff, and an understanding that he could obtain this funding through other legislation. This will remain a critical priority for MACDC this session, as current projections from MassHousing suggest, without recapitalization, as of June 30, 2020, the fund balance essentially would be zero.
The disparate actions taken by the House and Senate will be reconciled over the next 3-4 weeks in a Conference Committee. Your calls and emails remain vital, if we are to achieve our highest budget priorities and other goals outlined in early January.
So, stay tuned to further Action Alerts; there is more work for us to do!
Thank you for your support and your advocacy.
MACDC is grateful to the Baker administration and the Legislature for funding the Small Business Technical Assistance (SBTA) Program at $2 million in FY 2019 (line item 7002- 0040), and we are pleased that the Massachusetts House of Representatives voted to increase SBTA funding to $3 million in its budget approved in April – a proposed 50% Program increase for FY 2020.
We are not done yet, and we’ll need your help next week, as the Senate begins debate on its FY20 budget on May 21st.
Last fall, the Baker administration and the Massachusetts Growth Capital Corporation (MGCC), announced $2 million in grants to 40 organizations. The grants range from $10,000 to $120,000 and will allow CDCs and other community-based organizations to provide customized management and operational assistance, financial training, and lending services to small businesses; these resources are targeted to serving low- to moderate-income communities.
There has been growing demand for these technical assistance and program resources; last year MGCC received requests for almost $4 million, and the demand for the program has almost tripled since it was launched in 2007.
Since then, MACDC has been seeking to increase SBTA Program funding to $4 million, in as much as the January 2018 Massachusetts Gaming Commission report, "Reinvesting the Gaming Economic Development Fund," recommended strategies to fund priorities, one of which was deemed to be support for small business technical assistance and lending.
We need your help to increase funding for the SBTA Program in FY 2020. The Senate Committee on Ways and Means has recommended level funding ($2 million) for SBTA. However, Sen. Diana DiZoglio will be offering an amendment (#19) to increase funding to $4 million. Please, take a moment to call your state senator and ask them to co-sponsor and support the DiZoglio amendment (#19) to increase funding SBTA at $4 million.
In a $42.7 billion state budget, $4 million represents less than 1/1000th, and it is not an unreasonable amount to request to ensure that small businesses continue to grow and thrive in every community.
On April 22, the Massachusetts Division of Banks awarded $1.5 Million in grants for Foreclosure Counseling and First-Time Homebuyer Education through the 2019 Chapter 206 Awards. A total of 20 awards were made to 10 foreclosure prevention regional centers and 10 consumer counseling organizations which provide homebuyer education.
CDCs continue to be among the leaders in providing these essential services, with twelve of the twenty awards made to MACDC Members or coalitions which include MACDC Members. CDCs serving urban, rural, and suburban areas across the Commonwealth are helping homebuyers acquire their first homes and assisting homeowners at risk of foreclosure in keeping their homes.
The counseling awards were created through Chapter 206 of the Acts of 2007 – a law that MACDC helped enact through our advocacy with CHAPA and MAHA. They are funded by fees associated with the licensing of mortgage loan originators. In 2018, the Regional Foreclosure Centers assisted almost 4,800 clients, helping 84% of these clients to avoid foreclosure. Homebuyer education was provided to almost 2,700 clients. This counseling helped prospective homebuyers make an educated decision on when to purchase a home. Furthermore, it helped homebuyers secure affordable and sustainable mortgage loans- only .02% of these clients purchased a home with a subprime mortgage!
MACDC appreciates the Baker-Polito Administration’s ongoing support for this program and is grateful to the Division of Banks for its effective stewardship of this important resource.
The results are in! MACDC just released its 2019 GOALs Report which documents the collective impact of CDCs across the Commonwealth. For the second consecutive year, CDC investment in their communities topped $800 Million. Through this investment, CDCs improved the communities they serve by:
- Creating or preserving 1,535 Homes
- Creating or preserving 4,305 Jobs
- Providing technical assistance to 1,369 Entrepreneurs
- Providing 84,224 Families with Housing, Jobs, or Other Services
- Engaging 1,910 Leaders.
The Report highlights some of these impacts, including:
- Mill Cities Community Investments helping to convene a $1 Million Emergency Fund for businesses impacted by the fires caused by a natural gas explosion in the region;
- WATCH organizing a major grassroots campaign to increase the City of Waltham’s inclusionary housing requirements from 10% to 15%;
- Worcester Common Ground partnering with YouthBuild to create two units of family housing built entirely by youth; and
- NewVue Communities graduating its first cohort of Community Stewards, trained in Community Organizing.
Through these initiatives, and others, CDCS across Massachusetts act on the values that guide our work: lifting up community voice and power, building inclusive communities, and advancing economic opportunity. As we celebrate the results from 2018, we already can’t wait to see what CDCs achieve in 2019!
On April 25, more than 200 community developers representing 43 CDCs from across the Commonwealth came together for MACDC’s Annual Lobby Day at the State House. CDC leaders met with dozens of legislators to push for our shared agenda, including increased funding for Small Business Technical Assistance, legislation to strengthen the Community Preservation Trust Fund, and a Four-Step Agenda for addressing our housing crisis. At noon, these leaders were joined by dozens of friends, allies and legislators in the Great Hall to hear from Senator Brendan Crighton who thanked the leaders for their advocacy and their local leadership. CDC leaders also heard from Edison Ribeiro of Erise Builder’s Inc., a small business owner from Jamaica Plain who talked about his journey from Madison Park Vocational School High School, to working for a company whose CEO mentored him, to starting his own construction company, to getting help from JPNDC and now hiring and mentoring young people who work for him. His inspiring story and leadership reminded us that everyone needs help, and everyone can pay it forward.
In the afternoon, the MACDC Board of Directors meet with Governor Baker for over an hour. This was the fifth year in a row that we have had the opportunity to meet with the Governor on Lobby Day. Each of these conversations has been substantive and productive, but this year’s meeting might have been the most important. We dedicated over half the time to talking about the book Color of Law, which we had given to the Governor at our Convention last October. At the time, the Governor said he would read the book and discuss it with us at our next meeting. True to his word, we did just that, having a fascinating and at times emotional, conversation about racism, segregation, and what each of us can do to redress the harm caused by decades of racist federal, state, and local housing policies.
“This was one of our largest and most impactful Lobby Days in years,” said MACDC President Joseph Kriesberg. “We thank everyone who came – especially the dozens of people who were attending their first MACDC Lobby Day.”
To see pictures from the event, go to our Facebook Page.