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Could 2012 be the best year for Massachusetts CDCs since 1982?

January 3rd, 2012 by Joe Kriesberg

Starting in the mid 1970s, Mel King and other visionary leaders of the community development movement worked systematically to build a support infrastructure for CDCs in Massachusetts. They understood that such a system could grow what was then a nascent movement of community based development organizations, largely in Boston, and transform it into a robust, statewide field that could achieve impact at scale. So they created CEDAC, CDFC, the CDC Enabling Act, Chapter 40F, the CEED program, LISC and ultimately, in 1982, the Massachusetts Association of CDCs. These institutions laid the foundation for what quickly became one of the strongest community development sectors in the country and left a legacy from which we continue to benefit today – 30 years later.

The past few years have seen a similar wave of system building for the community development field. Starting with, and emerging from, the Community Development Innovation Forum that MACDC launched with LISC in 2008, we have seen the creation of the Mel King Institute for Community Building, the transformation of CDFC into the Massachusetts Growth Capital Corporation, and the modernization of the 1977 CDC enabling law into Chapter 40H, which creates, for the first time, a formal CDC certification process. We have also seen a wave of efforts to lift CDC practice in areas as diverse as community engagement (LISC’s Resilient Communities/Resilient Families program), financial management (MHP’s efforts to promote Strength Matters) and asset management, real estate development and small business development (through programs at the King Institute.)  And we have formed new cross-sector partnerships between the community development movement and sister movements in transit equity, smart growth, public health, and energy, enabling us to move toward more comprehensive and systemic change.

These efforts have the potential to culminate in 2012 with the passage of the Community Development Partnership Act. This ground breaking and game changing legislation would leverage up to $12 million in new, private philanthropy for high impact community development efforts. The program is “community centric” rather than “real estate centric,” opening the door for CDCs to pursue broad, comprehensive community development strategies. The legislation has garnered widespread support both inside and outside the State House, with House Speaker Robert DeLeo recently indicating serious interest in moving the legislation forward. If we can pass the CDPA this year, in 2012, it will allow us to build on all the great work of the past three years and the past thirty-plus years and take it to a level of scale and impact we have never seen. And by passing it this year, we can ensure the program is implemented by the Patrick Administration and its outstanding new Undersecretary for Housing and Community Development, long-time friend Aaron Gornstein.

While the economy continues to struggle and our communities fight to recover from the recession, we have a chance to do something big, bold, meaningful and lasting by passing the Community Development Partnership Act.

And when we come together this fall to officially celebrate MACDC’s 30th Anniversary we will not only be able to celebrate our field’s extraordinary history, but also its exciting and bright future.

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Bulldozing Out of Foreclosures

January 3rd, 2012 by Don Bianchi

On December 18th, CBS’ 60 Minutes broadcast a story entitled There Goes the Neighborhood about the impact of abandoned properties due to foreclosures and declining home values.  The piece focuses on Cleveland, Ohio where Cuyahoga County officials have demolished more than 1,000 homes this year - and plan to demolish 20,000 more - rather than let the blight spread and render nearby homes near worthless.

Although I grew up just outside of Cleveland, I’ve lived away long enough to appreciate that I am in no position to make an informed judgment about whether the decision to demolish these homes is in the interest of Cleveland’s citizens.  I know that the market context in Cleveland is very different than in Boston, and perhaps the neighborhood is served by demolishing vacant homes before they become vandalized and blighted, or worse.  Deeding the resultant vacant lots over to abutters for open space or community gardens may well help stabilize the value of surrounding properties.

However, there is something so sad that all these homes, many of them sound structures, are being demolished, especially when so many people in Cleveland don’t have a decent home.  Beyond that, I believe that aggressive demolition as a defensive response to homes becoming vacant represents a failure in public policy nationwide.  We, as citizens, are collectively responsible for this failure.

First, stable homeownership requires appropriate financing, and we failed to provide the necessary oversight and regulation of the lenders, brokers and appraisers who knowingly sold predatory loan products to families who could not afford them.  Second, when homeowners got into trouble, whether due to the loan products they bought or the economic calamities they faced, they appealed to lenders who too often refused to modify loans to payment levels borrowers could afford and adjust principal amounts to reflect a home’s current value.  We have failed to enact laws that can require lenders to negotiate in good faith with borrowers, and to enact federal bankruptcy reform that will allow homeowners to restructure their debts.

Third, when foreclosure occurred, we failed to protect the residents, both renters and owners, from being evicted.  Fourth, we failed to enforce building codes to require the foreclosing lender to better maintain the properties they acquire after foreclosure (or control prior to foreclosure).  And fifth, we failed to provide the funding and technical assistance so that nonprofit organizations and individual homebuyers can acquire, renovate, and maintain foreclosed properties so they become an asset to rather than a blight on the neighborhood.

By the time the City of Cleveland, or any other City, is faced with the option of leaving a vacant home to deteriorate or demolishing the home before it deteriorates, we have already lost five opportunities to intervene.  Unless we are assured that there is sufficient quality, affordable housing to meet everyone’s needs- and I don’t know of a place where we can have that assurance- demolishing homes rather than preserving and improving them represents a fundamental failure in public policy: in laws and regulations, in code enforcement, in resources, and in political will.  The public tools are there if we choose to prioritize them.

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