Introduction & Background
In 2012, MACDC and the Massachusetts Minority Contractors Association (MMCA) launched a new initiative to achieve higher rates of Minority Business Enterprise (MBE) and Women Business Enterprise (WBE) utilization on CDC-sponsored construction projects in the city of Boston. At that time, six CDCs enrolled 12 projects in the program and collectively generated more than $54 million in business opportunities for minority and women-owned enterprises (M/WBEs). Specifically, those 12 projects have achieved utilization rates of 36% MBE and 7% WBE – projects reporting as of June 2017 – with a total M/WBE utilization of 40% (net).
In December 2016, MACDC and MMCA announced the launch of the second phase of this exciting and successful program at the MACDC Annual Meeting. We are encouraged further that four additional CDCs from the greater Boston region have committed to participate in Phase II of this program, and to further expand business opportunities for minority- and women-owned enterprises in Greater Boston.
All CDCs that participate will benefit from the shared learning of the group, the political support that MACDC, MMCA and the other CDCs can bring to your project(s), the networks and connections that MMCA can provide to MBEs and WBEs, and the notable goodwill that comes with participating in a proactive effort to expand economic opportunity across our communities. While the focus of this program is on M/WBE participation, there is consistent evidence that achieving these goals will also result in the hiring of more people of color on these projects, thereby achieving yet another key economic development goal of diversifying our shared workforce.
A key goal of Phase II was to enroll at least ten participating CDCs and establish a pipeline of 20 separate real estate projects (including the remaining projects from Phase One that either are still under development or near completion). Along with continuing to accept projects from the City of Boston, Phase II will extend to CDCs with developing proposals for projects from Eastern Massachusetts, primarily the cities of Cambridge, Somerville, Chelsea, Revere, Lawrence, and Quincy. The original program included six CDCs – Madison Park, Dorchester Bay EDC, Jamaica Plain NDC, Codman Square NDC, Nuestra Comunidad and Urban Edge – that have enrolled 12 projects in the program and have generated collectively more than $54 million in business opportunities for minority- and women-owned (M/WBEs). Four additional CDCs – Somerville Community Corporation (SCC), Neighborhood of Affordable Housing (NOAH), Inquilinos Boricuas en Accion (IBA) and Asian CDC – have now joined the partnership and, collectively, have identified 29 projects with total development cost of $634 million and expected to be completed by 2021.
The Boston Pilot Program is concentrated on projects that are in the early conceptual phase or the pre-development phase. Projects already under construction are not eligible.
CDCs participating in the program commit to the following:
- Best faith efforts to achieve 30% MBE and 10% WBE utilization rates on your construction projects, including both hard and soft costs;
- A commitment to prompt payment and efforts to obtain upfront mobilization costs as needed;
- Meaningful opportunities for MBEs and WBEs to serve as general contractors as well as to provide professional services to the project (i.e. legal, architecture, consulting, engineering);
- Cooperation with MACDC’s data collection efforts, so we can monitor and report on progress – this program is committed to complete transparency;
- Monthly or bi-monthly program meetings that offer peer-learning, networking, and trouble-shooting and otherwise advance the goals of each CDC and the program overall; and
- Participating in quarterly outreach events with the broader M/WBE business communities.
- Asian CDC
- Codman Square NDC
- Dorchester Bay EDC
- Inquilinos Boricuas en Accion (IBA)
- Jamaica Plain NDC
- Madison Park
- Neighborhood of Affordable Housing (NOAH)
- Nuestra Comunidad
- Somerville Community Corporation (SCC)
- Urban Edge