Boston Community Capital and MassDevelopment Awarded $3 Million for Work in Massachusetts’ Gateway Cities
December 19, 2016
The Kresge Foundation invests to expand opportunities for communities facing economic challenges
FOR IMMEDIATE RELEASE
Jordan Smith, 646-335-0621
Kelsey Abbruzzese, MassDevelopment, 617-330-2086 & 617-448-9077 (cell)
Boston, MA—The Kresge Foundation is awarding $3 million to Boston Community Capital’s (BCC) loan fund to invest in Massachusetts’ Gateway Cities, small to mid-size regional cities with industrial histories. BCC is partnering with MassDevelopment, Massachusetts’ economic development and finance authority, through the Agency’s Transformative Development Initiative (TDI), a place-based economic development program for Gateway Cities. BCC and MassDevelopment will use the award to invest in mixed-use projects in the 10 TDI Districts, which are small, designated zones within Gateway Cities that receive technical assistance, real estate services and equity investments from MassDevelopment. The mixed-used projects will include large-scale real estate projects that combine residential, commercial, and cultural uses into a single building or block.
“We’re delighted to have Kresge as a partner in Boston Community Capital’s efforts to strengthen communities across Massachusetts,” said Elyse Cherry, CEO of BCC. “This investment will help us provide flexible, patient financing to support creative "place-making" developments in cities across the Commonwealth.”
In many Massachusetts cities, residential and commercial rents are low, while costs for rehabilitation of older buildings or new infill development tend to be high. Commercial vacancies, especially in downtown areas, can make it difficult to attract outside capital. The Kresge award will help retain existing residents or attract new ones by investing in real estate in these cities, drawing opportunities for quality housing, jobs and services.
“MassDevelopment is grateful to The Kresge Foundation for this investment and Boston Community Capital for its partnership on this effort to spur economic development in Massachusetts’ Gateway Cities,” said MassDevelopment President and CEO Marty Jones. “With this award, the Transformative Development Initiative will be able to support vibrant mixed-use developments that will help revitalize these important communities.”
“We’re very excited to support the great work that Boston Community Capital and MassDevelopment are doing in Massachusetts’ Gateway Cities,” said Joe Evans, the Portfolio Manager of Social Investment Practice at Kresge. “We’re proud to partner with and support an effort that will expand opportunities for residents across the state by providing these communities with a consistent, flexible source of capital to invest in local infrastructure, construction and other improvements.” The grant to BCC and MassDevelopment is part of Kresge Community Finance, a $14 million investment into community development financial institutions and development finance authorities working to improve outcomes for low-income people living in America’s cities.
About the Organizations
Boston Community Capital (BCC) is a nonprofit community development financial institution dedicated to building healthy communities where low-income people live and work. Since 1985, BCC has invested more than $1 billion in projects that provide affordable housing, good jobs, and new opportunities in low-income communities, connecting these neighborhoods to the mainstream economy.
MassDevelopment, the state’s finance and development agency, works with businesses, nonprofits, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2016, MassDevelopment financed or managed 352 projects generating investment of more than $4 billion in the Massachusetts economy. These projects are projected to create about 8,200 jobs and build or rehabilitate about 4,200 residential units.