A Decade of Housing Preservation: Impact of the MacArthur Foundation Funding

In a highly competitive process among state and local jurisdictions across the country, Massachusetts was selected in 2009 to participate in the Windows of Opportunity initiative launched by the John D. and Catherine T. MacArthur Foundation.  This MacArthur initiative intended to address the need for innovative solutions to preserve the long-term affordability of thousands of privately-owned affordable rental housing units that were reaching the expiration of their original affordability contracts.  Just in Massachusetts, there was the possibility that we could lose affordability on 9,000 units over a 10-year period, a devastating loss to families and individuals living in neighborhoods across the Commonwealth.

The Massachusetts proposal was submitted jointly by the Department of Housing and Community Development (DHCD) and CEDAC, with CEDAC playing the lead implementation role.  CEDAC secured an award of $4 million in philanthropic resources, including a $1 million grant and a $3 million program-related investment (PRI) to support this Massachusetts Housing Preservation Initiative.

Over the past decade, the MacArthur PRI has leveraged millions of additional dollars to help preserve thousands of units across the Commonwealth, and it is useful to understand the multiplier effects that a modest amount of philanthropic financing can produce.  Over the 10-year term of this PRI, this $3 million investment was used by CEDAC to lend to non-profit preservation projects. The funds revolved 4.75 times*, leading to a total PRI loan volume of $14.2 million.  These funds served as a source of predevelopment or acquisition capital for 38 affordable housing preservation projects with 3,879 units. The PRI was one piece of total CEDAC lending of $95.5 million to these 38 projects, including $41 million of loan participations by other private lenders. And here is the figure that is truly amazing – the total development costs of these 38 projects, including all of the public and private sources of financing, is just over $1.25 billion.  This is a remarkable amount of economic activity triggered by the $3 million PRI from MacArthur.

Coinciding with the MacArthur funding, the Commonwealth of Massachusetts enacted a new affordable housing preservation law known as Chapter 40T, which was signed into law on November 23, 2009. A several decades-long legislative effort culminated in the passage of this landmark law, which has given the state, local communities, and residents living in these at-risk developments new tools to monitor and address this expiring use housing challenge. Among the most important provisions of Chapter 40T are purchase rights that allow DHCD or its designated agent to acquire and preserve these expiring affordable housing projects if an owner proposes to sell the property.

Pictured above: the Interagency Working Group (IWG) celebrates its 10-year anniversary

As we celebrate the 10-year anniversary of the MacArthur Foundation funding and the enactment of Chapter 40T, we thought it was the right time to look at the outcomes that have been achieved in Massachusetts. MacArthur funded three primary activities under this housing preservation initiative:

  1. Interagency coordination: CEDAC has convened an Interagency Working Group (IWG), for 10 years, including representatives from state housing agencies (Massachusetts Housing Partnership, MassDevelopment, and the Massachusetts Housing Investment Corporation, in addition to DHCD and CEDAC), federal representatives from the HUD regional office, and City of Boston officials.  The IWG works to preserve affordable housing by sharing information, coordinating efforts, and developing systems for prioritizing properties at risk.
  2. Early Warning System: MacArthur funding  helped to support the management of a database of the privately-owned stock of publicly assisted affordable rental housing that CEDAC developed and maintains.   This database tracks over 150,000 units in about 2,400 projects across the state so that policymakers and tenants understand the timing of any expiring restrictions.
  3. Early Stage Project Financing: Using the $3 million MacArthur PRI, matching state funds, and capital from other public and private lenders, a $150 million Massachusetts Preservation Loan Fund, administered by CEDAC, has been established for predevelopment and acquisition financing for preservation projects.  This Loan Fund has been used to help preserve thousands of units of affordable housing, including this recent example in Boston.

As for the outcomes of these efforts, there is no doubt that Massachusetts has succeeded in preserving long-term affordability. CEDAC’s data show that in 2018, 3,814 affordable units in 25 project developments across the state were preserved using various types of state financing.  In total, DHCD has helped to preserve more than 35,000 units of affordable rental housing with the use of state financial resources since 2009.

We’re thrilled that we’ve been a part of such an important and successful effort to maintain homes for vulnerable families and individuals, and we are grateful for the support from the MacArthur Foundation. But we also know that we continue to face threats to our existing affordable housing stock and this will require a sustained commitment to the mission of preserving housing in Massachusetts. CEDAC will continue working with partners at the local, state, and federal level to prevent the loss of existing affordable housing and allow residents to remain in their homes and community.

*When the loans were repaid (often within two years), the PRI funds were loaned again to other non-profit preservation projects.

Working Together to Invest in High-Quality Early Education and Care

At INSITES this week, Amy O’Leary – a member of the Children’s Investment Fund Board of Directors and the current director of Early Education for All, a campaign of Strategies for Children – shares why she believes in advocating for high-quality early education and care facilities across the Commonwealth.

I have always had great admiration for the work of the Children’s Investment Fund.  As a former preschool teacher and program director, I know the important role the environment plays in ensuring high-quality early education for young children and families.  I served on the Facilities Inventory Advisory Committee for the 2011 report Building an Infrastructure for Quality: An Inventory of Early Childhood Education and Out-of-School Time Facilities in Massachusetts, which was commissioned by the Fund. 

It was an eye-opening experience to learn more about the research, the results of the survey and inventory of programs across Massachusetts, the capital resources needed, and next steps for action.  The report included bold recommendations that helped to lay the foundation for the new Early Education and Out of School Time (EEOST) Capital Fund to improve the quality of program facilities. That fund was included in a five-year housing and community development bond bill that was approved by the Massachusetts Legislature in 2013.  [Editor’s Note: EEOST was reauthorized in the Housing Bond Bill that Governor Baker signed in 2018.]

Since joining the Board in 2016, I have learned so much more about the critical work of the organization.  I am so impressed at the intentionality of the work – from the technical assistance for providers, the individualized support for programs, the partnership with the Department of Early Education and Care along with the Baker-Polito Administration and the Legislature, the research capacity and efforts to raise awareness about facilities in Massachusetts.  It has been wonderful to see the Fund be recognized as a leader in this space.  I know there are so many organizations and policymakers who would benefit from learning more about the Fund and lessons learned.

Along with many others, I helped to advocate for the reauthorization of the bond bill in 2018 which included the EEOST Capital Fund.  It has been absolutely AMAZING to see the transformation of the programs that have received the funding.  The difference is not just in the physical space- it can also be seen and felt in the classroom practices and from positive feedback from educators, administrators and families. I am so encouraged by the number of programs that are applying for the funds and hope that we will secure annual bond allocations of the full $9 million that was authorized for the EEOST Capital Fund.

I believe we need strong, smart, competent leaders who will work to help make things better for young children and families.  My personal mission is to work to empower early educators and to provide information and support to get them involved in advocacy, policy, and research.  As a preschool teacher at Ellis Memorial in Boston, I was honored and humbled to work in partnership with families as their children were learning, growing and celebrating milestones along the way.  As a center director, I became interested in how policies were made and wondered if the early childhood system supported parents and educators.  As an advocate, I have encouraged likely and unlikely allies to share my passion for making young children and early educators a priority.  As an adjunct faculty member, I am inspired by my students. I am committed to ensuring we have empowered educators for our young children while providing leadership opportunities for educators to practice what they are learning.

I believe my perspective as an early educator, combined with my current work as an advocate working on state and national policy and my passion for supporting the early education workforce are a good fit for serving on the Children’s Investment Fund Board, and I am so grateful for the opportunity. I look forward to continuing to work together to ensure children get the strong foundation they deserve.

State-Funded Home Modification Loan Program Surpasses 3,000 Loans

The Home Modification Loan Program (HMLP) recently celebrated an important milestone, surpassing its 3,000th loan. As of June 30th, HMLP has committed a total of 3,195 loans. These loans have helped many Massachusetts residents make essential modifications to their houses that allow their household members with physical and cognitive limitations to remain at home.

A state-funded loan program first enacted by the Massachusetts Legislature in 1999, HMLP assists homeowners and small landlords to finance home accessibility improvements. CEDAC works in collaboration with the Massachusetts Rehabilitation Commission (MRC) and the Department of Housing and Community Development (DHCD) to administer HMLP. Eligible homeowners can qualify for loans to finance modifications such as accessory dwelling units, the installation of ramps and lifts, accessible features for kitchens and bathrooms, the widening of doorways, and fencing.

People most often associate disabilities with just physical limitations, but HMLP also helps with modifications that support those with cognitive disabilities such as autism and dementia. For instance, HMLP has funded sensory spaces that are designed to help individuals with behavioral issues or developmental delays to safely develop and engage their senses and reactions to stimuli.

Homeowners work directly with one of seven regional provider agencies across the Commonwealth. Provider agencies review applications for eligibility, draft loan documents, and coordinate inspections of the property before and after the project. To learn more about the loan process, watch our short white board video here.

Every community has access to a regionally-located provider. In Western Massachusetts, homeowners can contact Way Finders, Inc. or the Pioneer Valley Planning Commission; in Central Massachusetts, residents can contact RCAP Solutions Financial Services, Inc.; Community Teamwork, Inc. covers communities north of Boston; South Middlesex Opportunity Council, Inc. works with MetroWest residents and residents on the Cape and Islands; in Boston, there’s Metro Housing Boston; and NeighborWorks Housing Solutions helps residents in the southeast region of the state. Click here to view the program brochure.

Since the program’s inception through June 2019, CEDAC and its regional provider partners have lent just over $76 million in loans through HMLP to support home modifications. In 2017, HMLP increased the maximum loan amount from $30,000 to $50,000 to reflect the increases in construction costs across Massachusetts communities over the past decade.

HMLP is an affordable financing program available to a wide range of Massachusetts residents – see the program brochure for income guidelines. All loans carry a 0% interest rate with a deferred repayment. This means homeowners are not required to make monthly payments, and repayment is required only when the house is sold or title is transferred.

Surpassing 3,000 loans only tells part of the story for HMLP. For residents, 20 years of HMLP loans has translated to the installation of 1,802 bathroom adaptations, 434 kitchen features, 1,685 ramps and lifts, 1,007 doorway reconfigurations, and 293 safety features. Each and every modification can be the difference between keeping a loved one at home and sending them to a care facility.

Most importantly, HMLP has been able to evolve as caregiving has changed over the years and families have sought more opportunities to meet the needs of their loved ones in their own homes. All those involved with HMLP – CEDAC, MRC, DHCD, and our regional partners – take pride in helping to facilitate a safe, accessible home for all their clients and families.

CEDAC-Sponsored RAD for PRAC Forum on Preserving Existing Affordable Elderly Housing

On October 7, 2019, CEDAC offered a forum that explained how Section 202 owners can use RAD as a preservation tool for their Section 202 PRAC projects.

Speakers included:

  • Tom Davis, Director, Office of Recapitalization, US Department of Housing and Urban Development (HUD)
  • Dan Rogers, Chief, Asset Management Division, Northeast Region, HUD
  • Emily Cooper, Chief Housing Officer, Executive Office of Elder Affairs and Special Advisor on Housing, MassHealth
  • Julie Creamer, Senior Vice President, Preservation of Affordable Housing
  • Lizbeth Heyer, Chief of Real Estate and Innovation, 2Life Communities
  • Naren Dhamodharan, President, Hampden Park Capital & Consulting
  • Bill Brauner, Director of Housing Preservation, CEDAC

Section 202 owners are always welcome to contact CEDAC for technical assistance on how to get started with the RAD conversion.

Thank you to our speakers and to all of those who were able to attend. If you couldn’t make it, we invite you to view PowerPoint presentations from the forum below:

 

HUD experts Tom Davis and Dan Rogers provided a detailed description of the RAD for PRAC notice and the process that Section 202 owners will go through to convert PRAC to Section 8.

Download [1.62 MB]

 

Emily Cooper from MA Elder Affairs gave a wealth of resources relating to elder service agencies and programs that can provide services for Section 202 residents.

Download [1.16 MB]

 

Julie Creamer walked participants through a tax credit RAD for PRAC transaction in Chicago that POAH is beginning.

Download [2.00 MB]

 

Naren Dhamodharan of Hampden Park Capital & Consulting explained how a conversion could work using FHA financing and no tax credits.

Download [475.22 KB]

 

We look forward to continuing to work with our partners to preserve this important stock of existing affordable elderly housing.

Children’s Investment Fund Offers Hands-on Training for Developing Natural Outdoor Play Spaces

This summer, CEDAC’s affiliate Children’s Investment Fund (the Fund) hosted its “Let’s Take It Outside” (LTIO) training on outdoor play spaces at Mass Audubon’s Boston Nature Center. The one-day interactive training offered 14 non-profit early childhood education (ECE) and out-of-school time (OST) organizations across Massachusetts an overview on how to successfully undertake high-quality natural outdoor play space projects.

LTIO covered the social, emotional and health benefits of natural play space, licensing regulations and guidance, and suggestions for incorporating outdoor play into a curriculum.  The training also included ideas, images and costs of natural play space elements.

Sessions were led by the Fund team as well as:

  • Mav Pardee, Consultant and former Director of the Fund
  • Kristin Metz, Education Consultant
  • Sharon Higgins, Teacher, Gertrude Townsend Head Start
  • Joanne Hiromura, Director of Landscape and Outdoor Playspace Design, studioMLA Architects
  • James Heroux, Principal, Copley Wolff Design Group
  • Claire Harris, Preschool Director, Boston Nature Center

Sharon Higgins led participants through a hands-on activity on how to use containers, compost, and worms to transform food waste into a new habitat. According to one participant, the activity was “very practical and fun—I’m going to start having my teachers do compost bins with our leftovers from snack!”

Of course, a training on natural play spaces wouldn’t be complete without a trip outside. Claire Harris led participants on a walking tour of the Boston Nature Center’s Nature Nook. This public learning space provides numerous possibilities for outdoor play, including sand and water play, music and movement areas, climbing areas, garden beds, and a gathering space.  Claire shared her perspective on the development process as well as inspiration and ideas for future projects.

Participants then had the chance to conceptualize their project plans by creating a model with natural elements such as dirt, sticks, and rocks along with their own photos and architectural drawings. They shared these ideas with Joanne Hiromura and James Heroux, two architects experienced in outdoor play spaces, and received feedback and recommendations for their projects.

As one participant noted, the training offered a “great general overview of how to create and build an outdoor play space that fits operational and program needs.” Moreover, it allowed providers to start bringing their projects to life and provided them with the guidance and resources they need to make these visions a reality.

The Children’s Investment Fund has assisted Massachusetts organizations’ efforts to build natural play spaces near their facilities. If you are an OST or ECE provider interested in developing enriching space outdoors for children, or learning more about the Fund’s trainings and technical assistance, please contact Theresa Jordan, Director of Children’s Facilities Finance at tjordan@childrensinvestmentfundma.org or call 617-727-5944 or visit www.cedac.org/CIF.

The Children’s Investment Fund is an affiliate of the Community Economic Development Assistance Corporation (CEDAC). Click here to read the INSITES post on last year’s LTIO training.

Looking Back While Thinking Ahead: Celebrating CEDAC’s History

Two years ago, CEDAC launched the INSITES blog in anticipation of an important organizational milestone: our 40th anniversary.  We have enjoyed this opportunity to revisit our history and reflect on the events and the people who have led us to where we are today, and to highlight how community development in Massachusetts has evolved over four decades.

This past spring, we celebrated those 40 years at a gala event that honored the work of Boston community leader and former state representative Mel King, who sponsored the original legislation that established CEDAC in the late 1970s.  Mel has inspired the community development movement since its inception.  We were honored to recognize him at the event, and everyone who attended was moved by his powerful words about the primacy of teamwork. We are also very pleased to capture Mel’s voice – and vision – in a video that focuses on CEDAC’s past and present, and also the direction that community development is heading in Massachusetts.

As we close out this celebratory period, we invite you to spend a few minutes watching our anniversary video.

In addition to Mel, you’ll hear from our previous Executive Directors Carl Sussman and Mike Gondek;  current and  former CEDAC Board Chairs, Undersecretary of Housing and Community Development Janelle Chan and MassHousing’s Chrystal Kornegay; non-profit CDC partners Joanne Campbell (Valley Community Development Corporation), Andrew DeFranza (Harborlight Community Partners), and Yvette Dyson (Worcester Common Ground); and current staff members, CEDAC Executive Director Roger Herzog and Theresa Jordan, Director of Children’s Facilities Finance at Children’s Investment Fund.

The video also features a range of community development projects assisted by CEDAC and the children, individuals and families supported through high-quality affordable housing and early education and care facilities throughout our 40 year history.

We are deeply grateful for the opportunity to work with so many of you– and pleased to share some important moments over the last few years.  We look forward to the next chapter of community development in Massachusetts, and will continue to keep you informed of our work and progress through the INSITES blog! Thank you again for all that you do to support our shared agenda.

CEDAC Staff Shares Technical Expertise on Affordable Housing and Community Development Panels

As a public private community development financial institution, CEDAC’s technical assistance focuses on understanding the interplay between project development and public policy.  CEDAC’s staff includes experienced practitioners in the areas of affordable housing production and preservation, and community facility development serving the early education sector.  We explored some of these issues in lightning talks at our 40th anniversary event last March.  In addition, over the past year, several of our senior staff have shared this expertise in public presentations, and joined leaders and professionals across the country to discuss current and future trends in community development.

In April, Bill Brauner, Director of Housing Preservation and Policy, participated on a panel at CHAPA’s forum, “Meeting the Housing Shortage for People with Extremely Low Incomes.” The event discussed findings from a new study by the New England Public Policy Center at the Federal Reserve Bank of Boston on the current shortage of rental housing available to extremely low income households. Bill’s comments focused on the importance of preserving the long-term affordability of existing housing serving this population, given the risks that the housing could be converted to market. In July, Bill also served as a panelist at the National Housing & Rehabilitation Association’s (NH&RA) Symposium on Preservation Strategies, which focused on creative approaches to meeting the growing need to recapitalize the existing Low Income Housing Tax Credit (LIHTC) and HUD-assisted portfolio. The panel, entitled “State & Local Preservation Solutions,” also included the following speakers: Laura Abernathy, National Housing Trust; Anne Berman, Rhode Island Housing; and Beth Truby, Colorado Housing Finance Authority.

Also in April, Sara Barcan, Director of Housing Development, moderated a panel on the challenges of affordable housing development, at Boston Bisnow’s annual affordable housing conference. Sara led a conversation on what’s needed to produce enough affordable rental housing to keep up with current demand, and emphasized the ongoing lack of housing for our most deeply low-income households. Panelists included Rodger Brown, Preservation of Affordable Housing (); Anthony Fracasso, MassDevelopment; Andy Waxman, The Community Builders (TCB); Mike Fish, Dellbrook JKS; and Fernando Domenech, DHK Architects.

CEDAC affiliate Children’s Investment Fund (the Fund) has also been active in several national discussions this year. In February, Theresa Jordan, Director of Children’s Facilities Finance, served as a panelist for the Enterprise Community Partners webinar entitled “Designing Home & Hope: Pairing Housing and Early Childhood Education Facilities — Case Studies from Boston and Seattle.” Enterprise published the Home & Hope report in 2018 to document the project development process and highlight key issues to consider for co-locating housing and early education and care. The Fund and CEDAC have invested in several of these facilities in Massachusetts. Theresa presented a case study of Brookview House, a program in Boston’s Dorchester neighborhood that co-locates afterschool space with affordable housing. Check out the recorded webinar online.

The Fund has continued to collaborate with the National Children’s Facilities Network and the Bipartisan Policy Center in their efforts to call national attention to the need for increased investment in early childhood facilities. “From the Ground Up: Improving Child Care and Early Learning Facilities” released by the Bipartisan Policy Center in May echoes CIF’s findings that the physical environment is an essential component of high quality early education. This spring, Theresa also participated in a live webcast panel presentation sponsored by the Bipartisan Policy Center that explored opportunities for financing facilities through capacity building, community partnerships and federal and philanthropic engagement. The panel, moderated by Sarah Muncey, Neighborhood Villages, also included Nicole Barcliff, Local Initiatives Support Corporation (LISC); Patricia A. Browne, National Children’s Center; Eric Buchanan, Buffet Early Childhood Fund; Erica Mackey, MyVillage; Linda K. Smith, BPC; and Rusty Smith, Rural Studio. Theresa highlighted the Fund’s intensive technical assistance work, training early learning organizations on the facilities development process, and the success of the EEOST Capital Fund. You can watch and download the recorded webinar here.

Finally, Bill Brauner has organized an upcoming forum on October 7 that will discuss how providers can access federal funding to recapitalize existing senior housing developments. HUD has recently released guidance for owners of existing Section 202 properties with Project Rental Assistance Contracts (PRAC) who wish to convert PRAC to Section 8 using the Rental Assistance Demonstration (RAD).  Thomas Davis, Director of HUD’s Recapitalization Office, will explain how Section 202 owners can use RAD as a preservation tool for their Section 202 PRAC projects. Other speakers will include Dan Rogers, Chief, Asset Management Division, HUD Boston; Emily Cooper, Chief Housing Officer, MA Executive Office of Elder Affairs, and a panel of elderly housing developers. Click here to register today.

As we look ahead to the future of community development, we are encouraged to see a growing awareness that affordable housing and child care facilities are critical components to strong neighborhoods across the country. We look forward to continuing to participate in discussions and trainings with partners across the country to advance this community development agenda.

An Affordable Housing Preservation Celebration: Newcastle/Saranac Apartments

Last Wednesday, August 14th, a diverse group of stakeholders, including advocates, neighborhood residents, community developers, lenders, public officials, and partners at the city and state level, came together to celebrate an important achievement – the preservation of 97 units of affordable housing at Newcastle/Saranac Apartments in Boston’s Lower Roxbury neighborhood.  Boston’s Mayor Martin J. Walsh joined the Fenway Community Development Corporation (Fenway CDC) and their development partner The Schochet Companies to highlight why maintaining these affordable units is so important and to praise the perseverance of those who worked hard to make this project a reality.

“Preserving Boston’s affordability is key to ensuring everyone who wants to live here can afford to do so, and I’m particularly pleased our commitment to the Newcastle/Saranac Apartments will both preserve and renovate 97 units of our existing affordable housing stock,” said Mayor Walsh in a press release. “I want to thank the Fenway CDC and our partners for working with us to make sure families can stay in their homes. Together, we’re protecting long-time residents from displacement, and we’re helping maintain the character of this community.”

Newcastle/Saranac was part of a portfolio of projects financed under MassHousing’s 13A program decades ago.  Thousands of affordable units were created in Massachusetts through the program, but the mortgages developers used to produce this housing have reached the end of their 40-year terms, and those units are now at risk of conversion to market rate. The Commonwealth’s housing agencies have been working hard over the last few years to preserve the affordability of those units, and have employed a diverse array of financing and regulatory tools, including the innovative Chapter 40T law, to do so.

CEDAC worked closely with public partners including the City of Boston, the Massachusetts Department of Housing and Community Development (DHCD), and MassHousing to help preserve Newcastle/Saranac. Our key role was in assembling, issuing commitments and closing on the $29 million acquisition loan to Fenway CDC and Schochet that allowed the sale from its previous owners to this new partnership to close last January.  This is the largest loan in CEDAC’s 40-year history.  We worked with a fantastic group of lenders who participated in this loan, including Eastern Bank, Boston Private Bank, The Life Initiative, and Massachusetts Housing Investment Corporation.

In my remarks at the celebratory event, I noted that a preservation project of this magnitude and complexity requires considerable collaboration among public agencies. The City of Boston has been the driving force to preserve these 97 homes, and without leadership from Mayor Walsh and the strong commitment by his team led by Sheila Dillon at the Department of Neighborhood Development (DND), the residents of Newcastle/Saranac likely would be facing displacement rather than celebrating the long-term affordability of their homes.

CEDAC and DND have built a very effective housing preservation partnership for nearly 30 years, resulting in the preservation of literally thousands of existing affordable units.  City support has allowed CEDAC to deliver technical assistance to tenants and non-profit buyers such as Fenway CDC, and we manage a city revolving loan fund for preservation.  CEDAC is grateful for this long-term and effective partnership with the City.

I would like to recognize the incredible work of the CEDAC team- in particular Bill Brauner, our Director of Housing Preservation and Policy, who spearheaded the preservation effort that resulted in the acquisition of Newcastle/Saranac. Debbie Schnitzer, our Director of Finance and Operations, and Jaclyn Pacejo, Program Associate, were also invaluable in making this loan possible.

We are thrilled to be a part of this important housing preservation achievement that will allow many long-time residents to remain in their homes and community.

Click above to view CEDAC’s remarks, or click here to see the full event captured by Boston City TV.

Secretary Kennealy’s #15k4ma Tour Looks at Affordable Housing in the Commonwealth

Massachusetts Secretary of Housing and Economic Development Mike Kennealy has just completed a very special tour across the Commonwealth.  Over the course of eight days, he stopped in multiple communities to highlight 28 affordable housing projects in various stages of development across Massachusetts, and by doing so, he has demonstrated why the state remains a national leader in community development.  The tour, which you can learn about at Secretary Kennealy’s Twitter account and by searching the hashtag #15k4ma, began by celebrating the funding announcement recently made by the Baker-Polito Administration supporting the production and preservation of 1,349 affordable housing units in the state.  That celebration took place in Governor Baker’s hometown of Swampscott on July 18th.

CEDAC staff joined Secretary Kennealy for a number of these visits to non-profit sponsored development projects, including the final day in the South Coast area, which took place earlier this week.  Among the projects that the Secretary visited was Noquochoke Village in Westport, where The Community Builders (TCB) hosted a ribbon cutting event for the new production of 50 units of mixed-income housing, including 10 units designated for extremely low-income families.  CEDAC provided pre-development financing for that project, and we worked with TCB to access bond funds from the Community Based Housing (CBH) Program to create four fully accessible units for persons with disabilities.

The South Coast tour moved on to New Bedford, where we visited two important supportive housing projects.  The first project, Willis Street Apartments, is under construction and will provide permanent supportive housing for veterans.  This project is being developed through a strong collaboration between two non-profits: Veterans Transition House and the Women’s Development Corporation.  CEDAC has managed the state’s Housing Innovations Fund investment in this project.  We then toured the second project, developed by the YWCA Southeastern Massachusetts.  The organization’s “Under One Roof” project features the co-location of new supportive housing for formerly homeless women and a new out-of-school time child care facility.

This YWCA project has received financial and technical support from CEDAC and our affiliate, the Children’s Investment Fund.  We are so proud to partner with the dynamic YWCA team, led by Executive Director Gail Fortes.  Gail led the tour for Secretary Kennealy and senior DHCD officials, including Undersecretary of Housing and Community Development Janelle Chan and Associate Director Kate Racer.  Hearing Gail’s passion and excitement about this new YWCA facility reminded us of why we featured her as one of the speakers at our 40th anniversary celebration in March.  You can read more about this project and other developments that have co-located child care and housing in this Banker and Tradesman op-ed from January 2018.

What was so encouraging about Secretary Kennealy’s tour is that it highlighted so well the different kinds of community development projects under production throughout the state.  He visited supportive housing projects on Cape Cod; preservation projects in Worcester, Bedford, and Northampton; and production projects in Boston and Arlington.  A broad range of projects at different stages of development were featured, showing once again the health and strength of the community development sector in transforming urban, suburban, and rural communities in Massachusetts. We would also like to acknowledge Kate Racer, DHCD’s Associate Director, for her critical role in planning and attending these visits.

CEDAC is pleased to be a part of a community development system in Massachusetts that works hard every day to strengthen neighborhoods, and we’re so glad that we get a chance to work with our non-profit partners to help families and individuals live in quality affordable housing.  Many thanks to Secretary Kennealy and Undersecretary Chan for their leadership and support of the sector and especially, through this tour, in promoting the great projects where the state has made strategic investments.  We can’t wait to see them all when they are completed.

Please find below a list of nonprofit organizations, projects and communities visited on Secretary Kennealy’s housing tour in July and August, 2019:

Baker-Polito Administration Announces $118 Million in Awards to Produce and Preserve Affordable Housing Across the Commonwealth

The highlight of the year for affordable housing production and preservation occurred on July 18th with the announcement of funding awards in the annual rental housing funding round to 28 affordable housing projects in Massachusetts. When Governor Baker signed the $1.8 billion Housing Bond bill last year – the largest the state has ever seen – it was clear that the Baker-Polito Administration was committed to providing high-quality affordable housing to communities throughout the Commonwealth.  The Governor, joined by Secretary of Housing and Economic Development Michael Kennealy, Undersecretary for Housing and Community Development Janelle Chan, state and local officials and project developers, announced the new funding awards, totaling $118 million, in his hometown of Swampscott, where a new project developed by B’nai B’rith Housing is located.  This funding will preserve or produce 1,581 rental units, including 1,349 affordable units. Over twenty percent, or 273 of these units, will be set aside for extremely low-income households with incomes no greater than 30% of the area median income.

“We are pleased to announce these Affordable Rental Housing Awards to advance the production and preservation of more than 1,500 rental housing units throughout the state,” said Governor Charlie Baker in the press release announcing the awards. “Housing is both a valuable tool and critical precursor for economic development, and these projects will provide stability to many households in need,” said Lt. Governor Karyn Polito in the same announcement.

CEDAC works closely with DHCD to stimulate the production of affordable housing among the state’s robust non-profit community development sector, both through its early stage financing and technical assistance program, as well as its management of three supportive housing bond programs: the Housing Innovations Fund (HIF), the Facilities Consolidation Fund (FCF), and the Community Based Housing (CBH) program.

To date, CEDAC has committed over $3.9 million of early stage predevelopment and/or acquisition financing to nine of the projects receiving awards.  A brief summary of these nine projects follows:

  • Cabot Street (Beverly) – The non-profit YMCA of the North Shore, with their development consultant Harborlight Community Partners, will rehabilitate and expand 45 existing single room occupancy (SRO) units into studio apartments and construct 24 new units in the central business district of Beverly. All units will be affordable, restricted for individuals earning less than 60% of area median income (AMI), with 20 units restricted for extremely low-income individuals. CEDAC has committed more than $195,000 in predevelopment funding to the project, and the development received HIF and FCF resources.
  • Bartlett Station Building A (Boston) – A part of a multi-phase redevelopment of a former MBTA site in Roxbury, Nuestra Comunidad Development Corporation is producing 42 new rental units, with 12 focused on extremely low-income households. CEDAC has provided $400,000 in predevelopment financing to this phase of the multi-phase development.
  • Dudley Terrace Apartments (Boston) – Located in Dorchester, Dorchester Bay Economic Development Corporation will preserve the long-term affordability of 56 rental units. Twenty units will be restricted for extremely low-income households, including formerly homeless individuals and families. CEDAC has committed $200,000 in predevelopment funding, and the project will receive FCF funding.
  • Parcel 25 Phase 2 (Boston) – Mission Hill Neighborhood Housing Services is building 46 new units of transit-oriented housing for families located in Mission Hill adjacent to the Roxbury Crossing station on the MBTA’s Orange Line. Eight units will be focused on extremely low-income families, including formerly homeless households. CEDAC has committed $397,000 in predevelopment financing to this phase, and the project will receive CBH funds.
  • Harbor Village (Gloucester) – A mixed-use project consisting of affordable rental units and commercial space in Gloucester’s downtown, North Shore Community Development Coalition, along with its nonprofit local partner Action Inc., will construct 30 new housing units with eight units restricted for extremely low-income households. CEDAC has provided the project a total of $1.4 million in acquisition and predevelopment financing, including $250,000 in low interest capital from the Home Funders Collaborative. The project will receive CBH and HIF funds.
  • Sirk and Chestnut Square Redevelopment (Lowell) – A preservation project sponsored by The Caleb Foundation, Sirk and Chestnut Square will rehabilitate 87 units of affordable housing, eight of which will be restricted for extremely low-income households. CEDAC has committed $100,000 in predevelopment financing for this project.
  • Terrapin Ridge (Sandwich) – The Women’s Institute for Housing and Economic Development is building 30 new units of affordable housing for families, with 14 units designated for extremely low-income households. CEDAC has committed $400,000 in predevelopment funding for this project, including $238,500 in low interest capital from the Home Funders Collaborative. The development has received CBH funds and HIF financing.
  • Cole Avenue (Williamstown) – Berkshire Housing Development Corp is developing 41 newly-constructed units of affordable housing on a town-owned, former industrial site near the Hoosic River. Eight of the units will be designated for extremely low-income households. CEDAC has committed $400,000 in predevelopment financing, and the project will receive CBH and HIF funding.
  • 126 Chandler (Worcester) – Worcester Common Ground will revitalize a long-vacant mill building to construct new affordable units in Worcester’s Piedmont neighborhood. The project will offer 31 total affordable housing units, nine of which will be restricted to extremely low-income households. CEDAC has committed $150,000 in acquisition funding and $305,000 in predevelopment financing, and the development will receive CBH funding.

In addition to these nine projects, CEDAC will work with several additional projects who received funding awards of HIF, FCF, or CBH funds, including these three exciting CDC or local housing authority-sponsored projects:

  • Holtzer Park (Boston) – Urban Edge will be building 62 new units of transit-oriented housing for families in Roxbury and Jamaica Plain, with 13 of those units focused on extremely low-income households, including formerly homeless families. The project will receive CBH, FCF and HIF financing.
  • Old Colony Phase Three B4 (Boston) – the Boston Housing Authority is working with Beacon Communities Development LLC on an ongoing redevelopment of an 840+ unit public housing project in South Boston. When the project is completed, this phase will offer 88 total affordable units. Nine of the units will be restricted for extremely low-income households, including formerly homeless families. CBH funding has been committed to this project.
  • St. Therese Condo I and St. Therese Condo II (Everett) – Both are part of a two-phase new construction project by The Neighborhood Developers (TND), its first affordable housing project in the city of Everett. When completed, St. Therese Condo I will feature 44 units, all of which will be affordable to seniors, with eight units further restricted for extremely low-income seniors. St. Therese Condo II will feature 33 units, all of which will be affordable to seniors, with six available to extremely low-income seniors.  Both phases will receive CBH and HIF funds.

This announcement was made close to an awarded project that is a good example of affordable housing and social services going hand-in-hand: Senior Residences at the Machon.  B’nai B’rith Housing will convert a former elementary school into 38 new units of senior housing, 8 of which will be reserved for extremely low-income households, and will provide long-term, onsite support services to its residents.  This is one of the first projects to be built in Swampscott after the town created its first-ever Affordable Housing Trust Fund in 2017, and it will allow seniors from the community to age in place.

Many of the projects receiving funding awards have incorporated supportive housing for certain target populations into these larger developments. The Administration has promoted collaboration between the state’s housing and human services agencies to increase the production of supportive housing to serve vulnerable populations. The Massachusetts Executive Offices of Health and Human Services and Elder Affairs are key partners to the Department of Housing and Community Development (DHCD) in this effort.

DHCD Undersecretary Janelle Chan, who also serves as CEDAC’s Board Chair, summed up the importance of these funding awards for these projects when she said, “Housing that meets the needs of residents is the foundation for thriving communities, supporting strong neighborhoods and vibrant downtowns. Today’s awards enable the creation of housing for low-income families, seniors, and individuals, including those transitioning out of homelessness. These high-impact projects will bring new residents to Fitchburg, Gloucester, and Methuen’s downtown districts, redevelop vacant school properties in Southbridge, Swampscott and Taunton, and leverage town-owned land in Williamstown. This is just a sample of the amazing developments we are supporting, all of which will benefit thousands of residents upon their completion.”

Read the official press release from the Baker-Polito Administration.