Boston Community Capital 2009 Annual Report

THE MAGNITUDE OF THE PROBLEM DOES NOT RELIEVE US OF THE OBLIGATION TO take action.

BOSTON COMMUNITY CAPITAL 2009 ANNUAL REPORT Residents of Fountain Hill Square Condominiums, an owner-managed, 46-unit mixed-income development in Roxbury, MA, and a BCC borrower since 1997.

@Marilyn Humphries to our partners

WHEN THE GOING GETS TOUGH As we write, unemployment in the United States is still at its highest level in 25 years — with little relief in sight. Residential mortgage foreclosures continue to undermine the stability of families and neighborhoods and threaten to erode the gains we have all worked so hard Last year’s annual report described the launch to achieve. of our solar initiative. This year, we are pleased Reading a newspaper, watching the evening to report that our Energy Advantage affiliate has news or even talking to a neighbor, the message become the largest third-party owner of solar is clear. Times are bad — particularly for the panels in the Commonwealth. It provides 1.5 people we serve. million kilowatt hours of solar electricity annually for affordable housing and municipal facilities. Times may be bad, but you have not wavered. We are also developing mechanisms to finance Because of your staunch and ongoing support, energy efficiency improvements, and a tracking Boston Community Capital has been able not system to help property owners understand and only to react to bad times, but also to grow, to manage their energy usage. build on our past work, and to do more to help sustain our low-income communities. Our Loan Fund and Venture Fund continue to work with our borrowers and portfolio companies Last year’s annual report described our emerg- to help them weather the economic downturn ing focus on the foreclosure crisis. This year, with flexible capital, increased leveraging of we are pleased to invite you to read about our federal funding, and a focus on the long-term new Stabilizing Urban Neighborhoods (SUN) sustainability of projects, businesses and neigh- Initiative. In just the last few months, we have borhoods. We also hope you enjoy reading about raised over $30 million and prevented evictions our staff’s remarkable engagement in civic for more than 50 families. Our goal: To raise a leadership — and the organizational culture $50 million fund and assisting more than 2,000 that supports their efforts. families over the next five years. For over a quarter century, you have helped Boston Community Capital build healthy communities where low-income people live and work. We are grateful for your partnership and very much look forward to continuing our work together over the next 25 years.

Elyse D. Cherry DeWitt Jones Rebecca L. Regan NOT POWERLESS NOT POWERLESS FIGHTING EVICTION TAKES TEAMWORK AND UNCOMMON INGENUITY. Foreclosure is an ugly word. Eviction is uglier. People lose their homes and their life savings. Families find themselves on the street. And blocks of suddenly empty houses threaten hard-won neighborhood stability. But in Massachusetts, BCC has partnered with community advocates, legal aid organizations, and low-income residents to keep foreclosed homeowners and tenants in their homes— right where they belong. The statistics are grim. In 2009, there scores as a result of the foreclosure... generations of his family. A printing were 27,928 petitions to foreclose in then along comes BCC, and says, company supervisor, he had never Massachusetts, a 28 percent increase ‘We’ll do it.’ And the radical thing missed a mortgage payment — until over the previous year. The issue, is that BCC makes those loans he had a massive heart attack. “We however, isn’t just foreclosure; it is without ever lowering its standards. paid our mortgage, paid our bills, did the subsequent evictions. As David BCC is a tough underwriter, with everything right. Then I lost my job, Grossman, Director of the Harvard rigorous requirements-and they are and within three months the bank- Legal Aid Bureau, explains, “They not cutting corners.” ers were calling saying they would throw the occupants out, leaving foreclose on me.” them homeless, then board up the property, creating a Buddy Wilson and his grandsons blight on the neighborhood, outside their home in East increasing vandalism and Boston. With financing from BCC, Wilson was able to re-purchase lowering property values.” his home with a mortgage he could afford. Preventing vacancy is critical. So the Harvard Legal Aid Bureau partnered with grass-roots community organizers City Life/Vida Urbana, forming a sword and shield strategy. Harvard Legal Aid Bureau supplied extensive legal representation, including clinics to educate people on their legal rights. City Life provided media attention.

“For a year and a half we were organizing residents of foreclosed buildings into popular protests,” says @Marilyn Humphries Steve Meacham, City Life’s Director of Organizing. “Our demand Grossman explains, “In the neighbor- “In the meantime I had another heart was: Stop the evictions and let these hoods where we’re working, property attack. I am in the hospital, having open residents pay rent.” values have declined by more than heart surgery and as I am coming out 50% since 2007. BCC is able to provide of the recovery room, my friend who Grossman continues, “What we were a mortgage that is aligned with the owns the store across the street calls me missing for a long time was the end actual value of the property, not the to say, ‘Someone is putting a foreclosure game. We could stop the lenders from value assigned to it during the hous- sign on your house.’ That is when I got evicting the occupants, but the lender ing bubble. That reduction in principal involved with City Life, who introduced still owned the property. We needed is something that lenders have ada- me to BCC.” to get properties back in hands of — mantly refused, but BCC has managed ideally — the homeowners or tenants “BCC went straight to the mortgage to change some bankers’ minds.” themselves. BCC’s Stabilizing Urban company with an offer to buy the house Neighborhoods (SUN) Initiative pro- Meacham agrees, “BCC is an aggres- back. They purchased the home at a vides the missing piece, by stepping in sive negotiator in their purchase of discounted price, sold it back to me and to purchase the properties, then provid- foreclosed property. They offer the provided the mortgage. It only took ing funding for foreclosed homeowners banks the opportunity to get out of the three weeks before my wife and I were to buy their own homes back.” whole situation at the same price that signing the papers. And now I am in a they will get if they evict. As a result, mortgage I can afford.” Meacham explains that homeowners BCC is able to provide a real solution were willing to repurchase their build- “Luckily I met the right people. Without for lots of foreclosed homeowners. ings, “but they couldn’t get financing, them I wouldn’t be in my home.” because they had terrible credit Take Buddy Wilson. Over the last 45 years, his home has sheltered four NOT WASTEful NOT WASTEful IT’S SUSTAINABLE, AFFORDABLE —AND RIGHT. Many people think green buildings are a luxury. BCC disagrees—and we are proving that low-income communities can not only be part of the environmental movement, they can be part of the global solution. We are breaking down barriers while helping community organizations maximize the alignment between their specific mission and environmental integrity. Each driver is unique, but the outcome is consistent: Sustainability. On Cape Cod, Housing for All Beacon Communities Development is Describing the Cambridge Housing Corporation strives to provide homes a well-respected, for-profit developer Authority, Executive Director Greg to everyone who needs one. But Paul of mixed-income housing with a Russ says, “We have a public mission Hebert, Founder, President, and portfolio of 9,000 units. Explains to provide low-income housing as long Executive Director, is pragmatic about Pamela Goodman, President of Beacon as there is a need. From everyone’s what that takes. “My job is to be holis- Communities Development, “We’ve perspective — resident, landlord, tic in how we care for people. Houses worked with BCC on creating renew- community — making these buildings need to be heated and cooled and able energy resources for a number of consume less energy is a good thing. energized — habitable and sustainable. our properties. Now we are trying to These investments could add 40 years So we decided to put solar panels on develop a program for deep-energy ret- to the life of the buildings, so they will top of the buildings to provide energy. rofitting of older, affordable properties. be available to future families. It fits We also wanted to sell energy, but we Greater energy efficiency improves our mission; it also lowers our operat- didn’t know what we were doing.” operating costs and provides better living costs.” ability. It makes economic sense. It’s a “As a nonprofit we can’t take advan- Russ discusses techniques: “No single marketing tool. And it’s also the right tage of tax credits or accelerated thing is going to work for all the thing to do.” depreciation. BCC created a solar buildings; it takes a combination of power purchase agreement that allows strategies. We are installing photo- voltaics; we are also changing BCC’s Energy Advantage Program fuels, improving windows and provides 1.5 million kW h of solar insulation and other basic electricity annually for affordable housing and municipal facilities. structural elements.” pictured Solar panels in Charlestown, “BCC is a terrific partner - pro- Cambridge and Hopkinton. viding knowledge and expertise that lets us do what we do best, and still push the limits to create greater efficiencies. When we applied for stimulus money, partnership with BCC made us competitive. With their assistance, we’re poised to become largest genera- tor of photovoltaic power in Cambridge. That is not usually something a housing authority thinks about, but it is incred- ibly useful to the families we www borregosolar c house, the community, and the environment.

State Street Bank, the investor providing credit enhancement for BCC’s Energy Advantage work, saw the program as “a unique opportunity to make sure low-income communities aren’t left behind as we @Marilyn Humphries retool our energy systems for more environmentally sound us to reduce the cost of our electric- Development Director Josh Cohen alternatives,” says Joe McGrail, Vice ity, reduce our carbon footprint and adds, “BCC has the financial, legal, and President, Community Affairs. “State contribute to the growth of the solar development savvy to understand how Street is always looking for creative industry in Massachusetts - all without to align the goals of property owners ways to support low-income communi- costing our donors a penny.” with the broader goals of green design ties. BCC came up with a structure and energy efficiency. They know that worked. When we get a chance to “We should all be doing whatever we how to balance innovation with the invest in a deal like this, we jump.” can to help the earth. And as a non- financial realities of putting together a profit, we also need to stay focused on real estate development deal.” our core mission. BCC let us do both.” NOT abandoned NOT abandoned “ Mission-driven” MEANs MORE OPTIONS TO KEEP THINGS GOING. In these challenging times, some projects face setback after setback. Financing partners must take a hard look at a project’s finances and prospects, and some lenders have no choice but to liquidate underlying assets— but BCC has the flexibility to take a longer view, extending the time and resources needed to see the project to completion. That freedom can change not only the life of a project, but the lives of hundreds of people. As a CDFI, BCC has the flexibility to was finished at the original expected “We also wanted to structure the make practical, creative decisions that quality, but it took about six months deal to benefit from New Market Tax other financial institutions cannot. This longer than anticipated. Condo sales Credits, which required a much more flexibility can make a big difference and prices remained solid, but with complicated loan structure. BCC is in a project’s outcome. Bart Mitchell, the change in the economy, the pace of one of the few organizations with the developer of 700 Harrison, explains: sales was slower than we had project- sophistication to manage it.” ed. Since the extra months meant extra “700 Harrison is a $40 million new “BCC’s heroic actions led to very interest, BCC extended and increased construction mixed-use project in positive results. In early 2010, the our loan to cover our carrying costs. Boston’s South End. It offers truly last residential condominiums are They worked closely with our first mixed income housing, with 34 condos being sold and the last part of BCC’s mortgage lender who agreed to join at market rate, 23 condos for house- construction and bridge financing BCC in extending their deadlines and holds making up to 110% of area is being repaid. 84 households make offering additional capital. Some of our median income (AMI), and 23 for households making up to 700 Harrison created 84 new 80% of AMI. Because the site units of mixed-income for-sale was one of the South End’s housing, child care facilities, last vacant lots, 700 Harrison and neighborhood-oriented represented one of the largest retail in Boston’s South End. and last opportunities to create a significant amount of new mixed-income homeownership in a neighborhood that has very low-income rental housing, expensive condos, and nothing in between. The ground floor includes neighborhood-oriented retail and a beautiful community garden. Below that lies a two- story, 160-space parking garage for building residents and employees of the adjacent Boston Medical Center.”

“From a financing standpoint @Marilyn Humphries this sort of project is complex; not public monies were also not available 700 Harrison their home; the condo- many lenders can handle it. They have until the last affordable-housing unit minium association is strong and is to be able to underwrite market-rate sold, so BCC gave us a bridge loan funding significant reserves. On the housing and understand government against that.” ground floor we have a small spe- regulations associated with affordable cialty foods store, a restaurant, and a housing subsidies; they also need to “Finally, in 2009, BCC became the bilingual child care center. Together look at the community purpose.” permanent lender for the retail and they create a vibrant street-front. These parking components, at a time when “BCC sees the whole picture. They gave kinds of independent retail tenants absolutely no other lenders were us a preconstruction loan, then during don’t have huge corporate balance available -- even though we were hit- construction they agreed to be a second sheets, but they are hard-working and ting all our commercial rent bench- mortgage construction lender. In both successful small businesses able to pay marks and reaching 100% occupancy cases, they provided appropriately- the rent and to bring needed services to of the retail and parking. This part priced financing without which we the neighborhood. of the project had a large social value- could not proceed. add: it was the first new retail space “BCC used imagination and intelligence on this part of Harrison Avenue in 30 to structure financing that made the Then the credit crunch came. years. When you have active ground project initially possible and then “When the project was 80% complete, floor retail it makes a lively, safe ensured it could be completed and our bonded general contractor de- neighborhood; that was one of the stabilized as a huge success for its resi- clared bankruptcy. The construction goals of the project.” dents, its neighborhood, and its city.” NOT isolated NOT isolated THE FABRIC OF A COMMUNITY IS WOVEN ONE SOUL AT A TIME. Strong communities stem from individuals whose hopes and dreams are cherished, nurtured and realized. BCC is committed to building those communities and to enabling their citizens’ dreams to become realities—and so we have deliberately built an organization that gives of its staff as well as its money. That exchange forms a powerful link between us and the communities we serve. Human capital is not on the BCC bal- communities, and felt that the organiza- empowerment; she completely embodies ance sheet. Nonetheless, it is a critical tion offered an opportunity to apply the the BCC values.” part of the organization—as important knowledge I’ve gained at BCC.” Five Williams adds, “BCC and The Food to the communities we serve as the years later, she is the incoming board Project are sort of mirrors of each financial capital we offer. Thus, from chair, and Executive Director Margaret other; we are looking at healthy people, BCC’s inception 25 years ago, we made Williams is grateful. As Williams notes, healthy land, healthy communities a conscious decision to create a culture “Many people who work in low-income and they are too. We just go about it in in which employees are encouraged to communities perceive it as a hand-out very complementary ways.” And that is pursue their own civic participation, situation; they are not interested in un- exactly the point. furthering BCC’s mission through their derstanding how the community wants personal commitment. to build itself. Jess gets community

The result empowers both BCC and the community—creating networks among BCC employees volunteer time, seemingly unrelated disciplines, provid- energy and expertise with orga- ing hands-on assistance to the organi- nizations like The Food Project, Boston Day and Evening Academy zations we support, and deepening our and Mother Caroline Academy and own knowledge of the inner-workings Education Center. of the communities where we work.

Consider BCC Senior Loan Officer Kathryn McHugh. She markets the loan fund to potential borrowers, un- derwrites loan requests, and conducts ongoing portfolio management. She is also an active volunteer on housing and homelessness issues: serving on the boards of the Somerville Homeless Coalition, the Jamaica Plain Housing Trust, and the Castle Square Tenants Organization Charitable Trust, and consulting to the State and the cities of Somerville, Attleboro and Taunton on policies and programs related to homelessness. In all these efforts, she is able to connect the bankers, contrac- Civic Engagement: A Partial List of Organizations Where BCC Staff Volunteer their Time tors and other professionals she knows Boston Day and Evening Academy MassHousing Home Ownership Advisory through her work at BCC with nonprof- Castle Square Tenants Organization Chari- Committee its that need their expertise. She also table Trust Mother Caroline Academy and Education brings the intelligence she gathers in Central Massachusetts Model T Club Center (Finance Committee) the course of her volunteerism to bear City of Boston, Renew Boston New Ecology Inc. Advisory Committee New England Trade Adjustment on her daily work. City Mission Society Investment Committee Assistance Center New England Women in Real Estate Jess Brooks, BCC’s Director of Coalition for Occupied Homes in Foreclosure Nonprofit Finance Fund Loan Committee Development and Communications, Dudley Pond Association Federal Reserve Bank of Boston- Community Northeastern University Law School is also deeply engaged with several Development Advisory Committee Dean’s Council nonprofits in the greater Boston area. First Parish Unitarian Universalist Church, The Philanthropic Initiative Her chief interest is The Food Project, Lexington Social Venture Partners Boston an organization that combines youth The Food Project City of Somerville, Homeless Assistance Continuum of Care Program development with sustainable farming, The Friends of GLBT Youth Jamaica Plain Housing Trust Somerville Homeless Coalition bringing together urban and suburban John Hopkins University Technology St. John the Evangelist Church, Wellesley - teens to grow healthy, local and afford- Commercialization Advisory Board Pastoral Planning Group able food that is distributed via farmer’s Kellogg Foundation Mission Driven City of Taunton, Ten Year Plan to end Chronic Homelessness markets, CSAs and food pantries. Investment Committee Low Income Investment Fund Community Tufts University Institute for Global Leadership Brooks joined the board because she Facilities Loan Committee United Way of Greater Attleboro & Taunton, Homeless Assistance Program was “interested in food justice, liked Massachusetts Cultural Council Massachusetts Interagency Task Force Wall Street Without Walls the idea of bringing together disparate on Homelessness Town of Wayland - Nike Site Reuse Advisory Committee Partners in our Mission

BCC and its affiliates provide a wide range of debt and equity the investment of our New Markets Tax Credit allocations. products for low-income communities and individuals and for BCC Solar Energy Advantage works to stabilize and reduce emerging businesses and entrepreneurs. Boston Community energy and utility costs of existing affordable housing by Loan Fund lends money to nonprofit organizations, community improving their energy efficiency, conservation and renewable development corporations and local developers that build energy use. NSP Residential is a real estate company focused affordable housing and provide social and community services. on developing and implementing a wide range of innovative and Boston Community Venture Fund makes equity investments flexible real estate and mortgage loan acquisition strategies in businesses that create jobs or provide services for low-income aimed at stabilizing communities threatened by the foreclosure communities. Boston Community Managed Assets develops crisis. Aura Mortgage Advisors is a mortgage brokerage new business initiatives and innovative funding vehicles for low- business dedicated to helping people understand the mortgage income individuals and communities and administers process and own homes they can afford.

board of directors Glenn Morgan Matt Aliberti Edwards Angell Palmer Charles Clark, Chair RDW Group IFactory Loan Officer & Dodge, LLP YouthBuild USA Jennifer Pinck Gail D. Berlinger Legal Counsel Sarah Lincoln, Treasurer Pinck & Company, Inc. Portfolio Manager Foley Hoag, LLP Citizens Bank Rebecca L. Regan Jessica Brooks Legal Counsel, Energy Advantage Program James Walsh, S. J., Esq., Clerk Boston Community Capital Director of Development and Communications Metro Law Center of Steven J. Tromp The Reznick Group Consultants, New Markets James F. Walsh, P.C. Wainwright Bank & Trust Judith Currier Tax Credit Elyse D. Cherry Infrastructure Project Manager Boston Community Capital Anna Delgado Fred Unger venture committee Mortgage Counselor Heartwood Group, Inc. Julie Gould Consultant, Energy Mercy Housing Edward Dugger III, Chair E. Matthew Gautieri UNC Partners, Inc. Advantage Program Edward Dugger III Controller Elyse D. Cherry Lisa Zappala UNC Partners, Inc. Jessica Herrmann Senior Finance Advisor Boston Community Capital Data and Intake Specialist DeWitt Jones Tess DeLean Boston Community Capital Charles Clark Ryan Kim YouthBuild USA Summer Research Fellow Maria Maffei Data and Intake Specialist Independent Consultant DeWitt Jones Luis Matienzo Boston Community Capital Loan Operations Manager boston community capital Rebecca L. Regan major contributors Boston Community Capital James Walsh, S.J., Esq. Kathryn McHugh Metro Law Center of Alexander, Aronson, Victor Rivera Senior Loan Officer James F. Walsh, P.C. Finning & Company Bank of America Michael Nilles Mercedes Tompkins Senior Loan Officer Anonymous foundation staff Brookview House Andres Rodriguez Anonymous individuals Elyse D. Cherry Mortgage Counselor Anonymous donation in CEO, Boston Community Capital Kathryn Rugus memory of Arthur Perry President, Boston Community Administrative Assistant loan committee Venture Fund Sharon Shepard The Derek Bok Advised Fund DeWitt Jones Victor Rivera, Chair Venture Fund Managing The Boston Foundation Bank of America President, BCC Solar Energy Director Advantage Boston Private Bank Meg Bennett President, Boston Community Michelle Volpe Deutsche Bank Private & Trust Company Managed Assets Team Leader/Senior Loan Wealth Management Officer Louise J. Bowditch Rebecca L. Regan Eva Clarke President, Boston Community Brookline Savings Bank MMA Financial Loan Fund professional support Jess Brooks & Russ Neufeld Laura Hackell COO, Boston Community Capital Alexander, Aronson, Finning Independent Consultant Janet Buchwald & Joel Moskowitz Patricia D. Hanratty & Company, PC DeWitt Jones President, Aura Auditor Paul & Catherine Buttenwieser Boston Community Capital Mortgage Advisors President, NSP Residential Clean Energy Solutions Ann & Bob Buxbaum Maria Maffei Consultants, Energy Independent Consultant Andrew Chen Advantage Program CDFI Fund of the Linnie McLean CFO, Boston Community Capital U.S. Department of Treasury Venture Fund Managing Trillium Asset Management Director Cheek Family Foundation Sovereign Bank loan fund investors G. Neil Harper Elyse D. Cherry Art & Kimberly Stevens individuals Francis W. Hatch Family Fund of the Community Anne Covert Joel Abrams Serena Hatch Foundation for the National Sue & Jim Cunio Salem Capital Region Nancy Askin Lance Hayes Danversbank Sudbury United Methodist Church Alma & Mitch Balonon-Rosen Gail & Thomas Hedges Partners in our Mission Beate Klein Becker Berman DeValerio Robert & Naomi Tuchmann Bill Himelhoch Martin & Susana Fantozzi Trudi Veldman Norman & Nancy Beecher Dave & Karen Hinchen Newell Flather Lloyd & Ruth Weinreb Jean Gordon Bell Linda L. Humphrey James Gamill & We are also deeply grateful for the Susan Berry Hannah Elizabeth James Susan Alexander contributions of numerous individuals and organizations—including many Rev. Alden Besse Olivia James Charles & Sara Goldberg long-time supporters of our work— Alice Boelter† Maria & Greg Jobin-Leeds Charitable Trust who prefer to remain anonymous. Carol Brainerd Dick Jones & Viki Bok Carolyn E. Hannauer Robert Brainerd Daniel Kamentsky Patricia D. Hanratty & venture fund Cheryl Bancroft portfolio companies Larry & Susan Brillˆ Karen Karp Hecht Design Acelero Learning, Harlem, NY Jessica Brooks & Jonathan Katz & Norah Wylieˆ Russell Neufeld Hyde Park Savings Bank Eating Well, Charlotte, VT Benjamin Matlaw Kaufmanˆ Florence Brown Impact Community Capital Dynex, Inc., Chantilly, VA Nathan Asher Kaufmanˆ Michael Brown J.P. Morgan ESA, Inc., Chelmsford, MA D. Gail Kearns Janet Buchwald & DeWitt & Megan Jones GeoVue, Inc., Woburn, MA Elisabeth W. Keller & Joel Moskowitz Steven C. Bonsey Magellan Biosciences, Dick Jones & Viki Bok Margaret Bush Hopkinton, MA Stephen L. Kidder Meryl A. Kessler & Scott I. Oran James & Susan Butler SelecTech, Inc., Avon, MA Judith S. King Sam Knight Paul & Catherine Buttenwieser TREK Diagnostics Systems, W. Scott Klinger Krokidas & Bluestein LLP Cleveland, OH James Campen Samuel Knight Warren Leon & WorkSource Staffing Partnership, Barbara E. Casey† Dawn J. Kramer Cynthia E. Robinson Brookline, MA Dawn Colsia^ Mike Lapham Rachelle Linner ZipCar, Inc., Cambridge, MA Martha Crawford John & Josephine Lavely M. Brinton Lykes Marie Crocetti Rachelle Linner Steven & Robin Lydenberg venture fund investors Francis Cummings John Lippitt Harry Margolis & Susan Phillips (llc members) Anonymous foundation Judy & Bill Currier Steve & Robin Lydenberg Herman and Frieda L. Miller Foundation Anonymous individuals Iphigenia Demetriades† Jamie Maguire Peter Munkenbeck Bank of America Capital Steven DePaul & Jane R. Matlawˆ Corporation Elisabeth Rendeiro Nehemiah Corporation of America Gregory Maul TD Banknorth, N.A. Laurie Dewey Greg & Peggy Nilles John J. McCooe Paul & Catherine Buttenwieser Carl Dickson Judith & Arthur Obermayer N. Carlile Miller Citizens Bank Carol Dickson Arthur Perry Trust Richard & Margriet Morris Richard & Priscilla Hunt John Dickson Edward N. Perry & Eva Moseley Priscilla Dickson Cynthia W. Wood The Roy A. Hunt Foundation Ted & Caroline Murray Curtis Engberg Pitts Family Fund at the The Hyams Foundation, Inc. Jessie Myszka Boston Foundation David Ennis & Kathleen Macridis- Institute for a Civil Society Ines Neu-Polonius Rebecca Regan & Meghan Ennis Jacobs Family Foundation Catharine Nicholson Regan-Loomis Katharine Esty JPMorgan Chase Community Ingeborg Nickelsen William & Eleanor Revelle Terry & Kris Finn Development Group Anne & Eric Nordell Robert Treat Paine Association Thomas Fitzgerald & Ann Curby The John D. & Catherine T. Joan & Roderick Nordell Parnassus Fund MacArthur Foundation David M. Friezeˆ Clients of NorthStar Asset Reynders, McVeigh Opportunity Finance Network Linda & Michael Friezeˆ Management, Inc. Capital Management, LLC Property & Casualty Initiative Lauren & Bill Gabovitchˆ Richard D. Olson, Jr. & Hugh & Frances Rogovin Richard R. Smith The Rockefeller Foundation Phil Giffee Naomi Rosenfeld Scott Oran & Meryl Kesslerˆ Harvy Simkovits Judy Goldberg Theodore & Dorothy Osgood Sara Schnorr State Street Bank Bruce & Eva Gordon Robert & Anita Ouellette Nina Schwarzschild Sovereign Bank Janet & Mark Gottesmanˆ Katherine Perls John & Claire Simon Ralph Taylor Happy Green Edward N. Perry & Fenwick Smith Cynthia Wood Laura Hackell† Beatrice Phear Rebecca Regan & Massachusetts Conference of foundations & institutions loan fund Meghan Regan-Loomis the United Church of Christ Banc of America Community borrowers John Regier Needham Clergy Association Development Corporation Arch Street Development Elaine Reily & Marilyn Stern New England Annual Bank of New York Mellon* Allem Realty Trust Ronald Riggert Conference of the United Belmont Savings Bank* Methodist Church Alliance for Animals Kathryn Rothermel The Boston Foundation Old South Church in Boston Alliance for Young Families Jeremy & Aviva Rothman-Shore Boston Private Bank & Trust Parish of All Saints Church, Company* Allston-Brighton Community Larry & Nancy Rowe Belmont Development Corporation Boston Trust & Investment Kathryn Rugus Parish of the Epiphany, Management Company Architectural Heritage Foundation Maggie & John Russell Winchester Brown Brothers Harriman Artists Cooperative at Skip Schiel Presbyterian Church in Sudbury 300 Summer Street Calvert Social Investment Fund Karin Segal Presbytery of Boston Artist Tenants of the South End Cascap Cooperative Corporation Zoe Sherman Saint Paul’s Episcopal Church, Central Cooperative Bank* Asian Community Ken Sinclair & Mary Blagdon Brookline Citizens Bank*° Development Corporation John Stix School Sisters of Notre Dame, Wilton, CT Community Development Financial Beacon Communities David & Suki Stolow Institutions Fund* Seeds of Change Berkshire Arts & Technology Alice Stowell Dedham Institution for Savings* (BArT) Charter Public School Sisters of the Assumption of John & Nadine Suhrbier the Blessed Virgin Dorchester Bay Economic Bethel AME Church Development Corporation Sandra Sweetnam & David Smith Sisters of Charity of Halifax Beverly Affordable Housing Eastern Bank* Joyce Tavon & Richard Caruso Sisters of Charity of Montreal, Boston Aging Concerns— Ralph Taylor Grey Nuns ENAID Housing Trust Young & Old United, Inc. Lewis & Sandra Thompson Sisters of Charity of Saint Fannie Mae Foundation Boston Citywide Land Trust Mrs. William Thompson Elizabeth, New Jersey Fidelity Management Trust Boston Film & Video Foundation Joan Tighe Sisters of St. Francis of Company° Boston Neighborhood Philadelphia Housing Services Maynard Tishman Fiduciary Trust Company Society of the Divine Word, Funding Exchange Endowment Bridge Housing Corporation Clients of Trillium Asset Chicago Province Management Funding Exchange Pooled Fund Brookside Artists, LLC Society of the Holy Child Jesus Trudi Veldman Harvard University* Cambodian Mutual Assistance Society of St. John the Evangelist Association Jonathan Wallach & F.B. Heron Foundation* Linda Hanson Sons of Mary, Health of the Sick HSBC Bank USA Casa Esperanza Douglas & Judith Weinstock St. Anne’s-in-the-Fields, Lincoln Hyde Park Savings Bank* Casa Myrna Vazquez, Inc. Charles Wibiralske & Kate LaPine Sudbury United Methodist Church The Life Initiative° Casa Nueva Vida Elizabeth Winship Temple Emanuel of Newtonˆ Mass Development° Cascap Margaret Winslow Temple Israel of Boston^ McAuley Institute° Chelsea Neighborhood Housing Services Howard Wolkˆ Temple Shalom of Newtonˆ Metropolitan Life Foundation Chestnut Street Cooperative Lee A. Work The American Baptist Churches Metropolitan Life Insurance of Massachusetts Citizen Schools Evelyn & Lawrence Zuk Company The Micah Fund: The Greater Miles Properties Citizens For Affordable Housing in Boston Jewish Fund for Newton Development Organization religious organizations Community Economic National Cooperative Bank (CAN-DO) Development Corporation° Augustinians of the Assumption Development, a CJP/JCRC City Lights Initiativeˆ The Obermayer Foundationˆ Belmont United Methodist Church The City School Boston Tzedec Community Fundˆ The Paulist Center Endowment, Opportunity Finance Network Boston, MA Codman Square Neighborhood Christ Church Episcopal, Parnassus Fund Development Corporation Cambridge Clients of Trillium Asset Property & Casualty Initiative° Management Communities United, Inc. Daughters of Charity of St. Vincent Rosie’s Place Community Action Agency DePaul, Northeast Province, Inc. Trinitarian Congregational Church, Concord Robert Treat Paine Association of Somerville Evangelical Lutheran Rowe Family Charitable Trust Community Action for Better Church of America TZEDEC Economic Development Fund of the Jewish Funds for Rubblestone Foundation Housing (CABH) First Church of Christ, Bedford Justiceˆ The Erich & Hannah Sachs Community Servings First Congregational Unitarian Universalist Association Foundation Cushing Manor Support Facility Church of Winchester of Congregations Salem Five Cents Savings Bank* DIAL-SELF Teen Services First Congregational Church of United Parish of Auburndale Winchester Women’s Association State Street Bank* Dimock Community Health Center United Parish in Brookline (Social Justice for Women) First Parish in Lincoln TD Banknorth, N.A.* Winchester Unitarian Society Dorchester Bay Economic First Parish in Weston Wainwright Bank & Trust Women of the Epiphany, Company° Development Corporation First Parish of Westwood, Winchester Dorchester Gardenlands United Church Walpole Co-operative Bank Women’s Association of the Eliot Dorchester Home & Garden Harvard Epworth United Church, Newton And the many individuals, institutions, E.L. Haynes Public Charter School Methodist Church, Cambridge and religious organizations who wish to Jewish Community remain anonymous. East Boston Community Relations Councilˆ * Equity Equivalent Investor Development Corporation ° Purchaser of loan participations ˆ Investor in The Micah Fund: The Greater Ecumenical Social Action Boston Jewish Fund for Community Economic Development, a CJP/JCRC Committee (ESAC) Initiative † Wellesley Alumnae Investor Ellington Street Milton-Fuller Housing Corporation Quincy Geneva Housing Tuttle House, Inc. Cooperative Corporation Mission SAFE Development Corporation University Lutheran Association of Elizabeth Stone House: Mitchell Properties Rehoboth Bethel Development Greater Boston/Harvard Square Transitional Housing Project Corporation Homeless Shelter Neighborhood of Affordable Emmanuel Gospel Center Housing (NOAH) Roxbury Multi-Service Center Urban Edge Housing Corporation ETC Development Corporation Neighborhood Development Ruggles Affordable Assisted Veterans Benefits Clearinghouse Fairbanks Development, LLC Corporation of Grove Hall Living Center Development Corporation Fairfield Real Estate Development New Boston Fund Salem Harbor Community Valley Community Development Development Corporation Corporation Falmouth Housing Corporation North Metropolitan Salem Mission Victory Programs Fenway Community Homemakers—Home Health Development Corporation Aide Service Second Home/United Homes for VIET-AID Children Finex House November Collective Visiting Nurses Association Cooperative Corporation Shelter, Inc. (VNA), Somerville First Night, Inc. Forest Glen Cooperative Fort Point Arts Community BCC’s loan to Arch Street Development Fountain Hill Condo Association will allow the group to rehab 86 units of Franklin Field South affordable rental housing in Providence, Neighborhood Association RI — including 46 apartments for low- Friends of Shattuck Shelter income seniors and 40 units of scattered The Garment District site family housing — and maintain them Gay & Lesbian Advocates as affordable. & Defenders (GLAD) Generations, Inc./Magic Me Guidance Center, Inc./Center Inc. H R Ross Industries Hart Development Associates Harvard Community Health Center/Griffin House Harwich Ecumenical Council for the Homeless HEARTH (formerly Committee to End Elder Homelessness) HomeStart, Inc. Hope House Humphreys Street Studios Inquilinos Boricuas en Accion (IBA) Island Housing Trust Jamaica Plain Neighborhood Development Corporation Jamaica Plain Scattered Site Cooperative Jewish Community Housing for the Elderly (JCHE) Jumpstart for Young Children, Inc. @Marilyn Humphries Just-A-Start Corporation Keen Development Corporation Nuestra Comunidad SMILE Pre-School Inc. VNA Lowell Street Limited Kit Clark Senior Services/ Partnership Federated Dorchester Development Corporation Sojourner House Vocational Advancement Center Neighborhood Houses Nu-Life Development Corporation Somerville Community Corporation Wabash Construction Lawrence Community Works Oaktree Development South Boston Neighborhood Lifehouse Operation Outreach—USA, Inc. Development Corporation WATCH, Inc. Living in Dorchester Otisfield, LLC Spontaneous Celebrations Watertown Community Housing Madison Park Development Paige Academy Michael Stella Windale Developers, Inc. Corporation Park View Cooperative Tent City Corporation Women’s Educational Center (The Women’s Center) Mattapan Community Corporation The Communities Group (TCG) Development Corporation Paul Sullivan Housing Trust of Massachusetts Women’s Housing Initiative (Brookview House) MD Properties Peace at Home The Leaguers, Inc. Women’s Institute for New Growth Media & Technology Charter High Penikese Island School The Starting Line/MOPPETS (MATCH) School & Support (WINGS) Peterbridge, Inc. Frank Thomas/Otisfield, LLC Methunion Manor Cooperative Worcester Common Ground Corporation Pine Street Inn Trinity Development/Foley Worcester East Side CDC Assisted Living Miles Properties, Inc. Putnam & Western Cooperative YWCA of Boston Trust on Behalf of Eastern Service Workers Association FINANCIAL PERFORMANCE

cumulative dollars invested Aura Mortgage / NSP Residential $450 m (as of 12/31/2009) $400 m

$350 m New Markets $300 m

$250 m Venture Fund

$200 m

$150 m Loan Fund $100 m

$50 m

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Subtotal Housing $225,660,068 boston community loan fund loans Subtotal NonHousing + $87,058,752 by type 1985–2009 cumulative Total $312,718,820 (as of 12/31/2009) = 36% Affordable Homeownership $112,849,381

Affordable Child Care, Schools Rental Housing and Youth $87,074,617 28% 18% $56,775,617

10% 8% Community Facilities Supportive and Commercial Housing and Shelters Real Estate $25,736,070 $30,283,135

self-sustainability ratio personnel expense as percentage (as of 12/31/2009) of assets under management (as of 12/31/2009)

220% $500 m 8% $500 m 200% $450 m $450 m Total Assets 7% Total Assets 180% Under Management $400 m Under Management $400 m 160% 6% $350 m $350 m 140% Self-sustainability Ratio Personnel Expense 5% $300 m as % of Assets Under $300 m 120% Management $250 m 4% $250 m 100% $200 m $200 m 80% 3% $150 m $150 m 60% 2% $100 m $100 m 40% 1% 20% $50 m $50 m

0% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Las Ventas, a specialty grocery store at 700 Harrison, in Boston’s South End, provides Spanish foods, including bocadillos, meats, cheeses and imported spices. The location New Markets represents the first new retail space on this part of Harrison Avenue in three decades.

Community Facilities and Commercial Real Estate $30,283,135

1984 The Housing Concerns Committee of Old South Church asks the Institute for Com- munity Economics (ICE) to initiate and guide the development of a revolving loan fund for low-income housing in the Boston area. In December, the Boston Community Loan Fund (BCLF) incorporates. 1985 In May, BCLF holds its first annual meeting and elects its first 12-member Board of Directors. Board includes Nikki Flionis, President; David Wiley, Vice President; Jerome Groskind, Treasurer; Elyse Cherry, Clerk/Secretary, and James Walsh, Member. In July, DeWitt Jones joins as a full-time Mission Statement fund manager. Boston Community Capital’s mission is to build healthy communities where low-income people live and work. To this end, we finance affordable housing, child care facilities, arts programs, schools, health clinics, youth programs and other community services; invest equity dollars into businesses that create social and financial returns; and develop new financial tools that connect On August 9, BCLF receives its first low-income communities to mainstream financial loan from Terri Ragot and, in turn, markets. We serve as a vehicle for a wide range of makes a loan to Tent City. investors, including individuals, institutions and faith-based organizations. Working together, we achieve the cost-effective access to capital that is a key to building healthy communities. 1988 1990 In the face of the banking and real estate collapse, BCLF establishes – and meets – goal of restructuring its portfolio without losing a single investor dollar or a single Tent City today unit of housing.

Makes first loan over $200,000 to Rehoboth 1986 Bethel Development Corporation. 1991 By close of year one, BCLF has 19 investors Grows long-term lending capacity five-fold and a loan pool of over $440,000; it lever- to $1 million, by actively seeking five-year ages an additional $65 million in public and loans from investors. private financing to create or preserve over 360 units of affordable housing. Nine loans have been repaid and all loan payments are 1989 on schedule. Lends $1.7 million, doubling cumulative lending to date. 1992 TOTAL LOAN POOL 1985-1989 Hosts the National Association of Community Development Loan Funds (NACDLF) Annual Conference.

BCLF provides first loan over $100,000 to Casa Myrna Vazquez. 85 86 87 88 89 $62,000 440,000 1.2m 2.2m 5.2m Membership nearly doubles from 35 to 68. BCLF joins 25 other loan funds around the country to establish the National Association Total loan pool grows to over $5 million from of Community Development Loan Funds (now more than 300 investors, which the organiza- Opportunity Finance Network). tion uses to provide or preserve over 1,000 affordable housing units with no loan losses. Expands lending area to Cambridge, Massachusetts with loan to the Cambridge and Somerville Cooperative Apartment 1987 Project (now Cascap). Initiates bridge lending program with loan to Dimock Community Health Center/Social Justice for Women.

Staff expands to five. Collaborates with Boston Aging Concerns on the “100 Rooms Campaign,” renovating 100 lodging house rooms. 1993 1996 Broadens its mission to include community Boston Community Venture Fund initiates development lending, and provides working a $5 million private placement offering and capital to allow a community organization to invests its first $50,000 in WorkSource restructure its finances. Staffing Partnership. Pictured below: Cooperative Home Care of Boston is BCLF’s a WorkSource graduate. first business borrower, a pre-cursor of our Venture Funds. Pictured below: Graduation ceremony for Cooperative Home Care’s first Bill Clinton signs legislation to create the class of home health aides. Community Development Financial Institutions Fund.

Receives an inaugural award from the Com- Helps establish the Community Development munity Development Financial Institutions Venture Capital Alliance (CDVCA). Fund of the U.S. Department of Treasury. 1995 1997 1994 BCLF becomes Boston Community Capital Establishes One-to-Four Family Program (BCC), an umbrella organization with three to renovates distressed homes in targeted affiliated nonprofits: Boston Community Loan neighborhoods. Fund, Boston Community Venture Fund, and Boston Community Managed Assets. 1998 Hosts Treasury Secretary Robert Rubin for an event celebrating the launch of our Venture Fund. Moves to new offices at Palladio Hall in the heart of Dudley Square, Roxbury.

We are growing. Permanent capital increases to nearly $750,000. 1999 2005 2007 Writes a five year strategic plan to grow NMTC leverage loan to Media and Technology Publishes “Recouping the True Costs of to an $80 million organization. Charter High (MATCH) School is the first of Foreclosure,” a white paper describing the Broadens geographic reach to encompass its kind, paving the way to new expertise in destabilizing impact of foreclosures on the entire state of Massachusetts. a growing industry. low-income communities in Massachusetts. Launches a second $15 million Venture Fund, Funds projects in rural Maine and Recognized by the Calvert Foundation as one focused on lending across the Northeast. Washington State, expanding geographic of five “U.S. leaders in promoting affordable reach nationwide. housing/responsiblelending solutions to help thwart predatory lending and mortgage foreclosures.”

Partners with four other organizations to create the Green Building Production Network Assets under Management reach $26 million 2008 to provide grants and technical assistance to Launches Solar Energy Advantage, to finance enable affordable housing projects to have renewable energy for affordable housing. substantial green outcomes. SEA becomes the largest third-party owner of solar panels in the Commonwealth of Massachusetts, and a model for the financing 2001 of renewable energy. Completes “Realizing Return: A Proposal for the Development of an Exit Strategy for the Community Development Venture Capital Industry.”

Assets under Management continue to grow — over $150 million under management on 12/31/05

Successfully exits from venture investment City Fresh Foods, which brings a 17% annual return on investment. 2006 2009 Receives second New Markets Tax Launches Stabilizing Urban Neighborhoods Credit award. (SUN) Initiative to address the foreclosure Receives one of the highest ratings crisis in low-income communities. SUN helps possible from the CDFI Assessment and families facing eviction due to foreclosure Rating System (CARS). remain in their homes by purchasing foreclosed properties at steep discounts 2004 Launches Aura Mortgage Advisors to combat Receives $70 million New Markets Tax and re-conveying them to current occupants predatory lending practices and provide Credit award, one of the largest made to with fixed rate mortgages they can afford. low-income communities with affordable any nonprofit in the nation. home mortgages. BCC has over $500 million under management. Develops replicable model for financing affordable housing with renewable energy and green design. Residents of Carleton Court in Providence, RI. Located in a former parochial school off Atwells Avenue, the development provides 46 affordable rental apartments for low-income seniors.

Creighton Condominiums provides 16 affordable homes for first-time homeowners on the former site of Blessed Sacrament Church in Jamaica Plain - including six in the relocated 115-year-old rectory. BCC provided acquisition and construction financing for affordable housing at 270 Centre Street in Jamaica Plain, including an NMTC leverage loan.

Bilingual child care facilities at 700 Harrison in Boston’s South End help create a vibrant street-front and bring valuable services to the neighborhood.

The redevelopment plan for the 3.2 acre historic Blessed Sacrament campus includes 81 new affordable homes, new retail space for small-scale businesses, public green space, and commercial space for nonprofit youth organizations. editor jessica brooks designhecht design copy trevania henderson printingkirkwood printing ©2009. all rights reserved.

www.bostoncommunitycapital.org boston community capital p 617.427.8600 f 617.427.9300 for more information, contact us at: for more information, contact us at: 56 Warren Street Palladio Hall Boston, MA 02119-3236