MHP awards $4M in grants to support housing development

BOSTON, Sept. 25, 2008 --- In its continuing effort to support affordable housing production in Massachusetts, MHP has awarded nearly $4 million in grants to non-profit and community-based development organizations across the state.

MHP has awarded grants in three categories:

• $1.5 million to six non-profit organizations to increase their capital base and help leverage other lines of credit to support operations and specific development activities;
• $2.1 million in multi-year grants of two and three-years to 33 organizations to fund staff or consultants that will help these organizations produce or preserve affordable housing, or undertake community building activities related to housing production and preservation;
• In October, MHP will announce $375,000 in capacity innovation grants to support organizations that are pursuing new initiatives such as advancing the ability to produce housing in underserved areas, or special initiatives such as creating housing in partnership with service providers for homeless individuals and families.

Awarded through MHP’s Production Support Program, the grant program uses funds from Bank of America to provide non-profit and community-based organizations with a flexible source of funds to advance specific development projects.  

“These investments will help non-profits and CDCs in urban, suburban and rural communities create high quality, permanently affordable housing for people at a variety of income levels. In so doing, we will also stabilize communities under siege due to the foreclosure crisis, the growing inventory of vacant properties, and the ongoing credit crunch,” said Joseph Kriesberg, president of the Massachusetts Association of Community Development Corporations.  “The funding will also help sustain organizations at a time when many non profits are struggling themselves to move projects forward.”

This is the second time in just over three years that MHP has used its private bank funding to support the development activities of non-profit and community-based development organizations. In 2005, MHP initiated a three-year, $3 million grant program that made awards to 30 organizations to support the development of 3,500 units of affordable housing. Of this total, 924 units have been built or are in construction, with the remainder under site control and pending due to the resolution of regulatory and funding issues. This program was also supported with funds from Bank of America.

“There are few issues more critical to the lives of our neighbors and the stability of the Commonwealth’s economy than ensuring a supply of affordable housing,” said Robert E. Gallery, president, Bank of America Massachusetts.  “Bank of America is pleased to continue working with MHP to find innovative ways to address this crucial issue.”

MHP is a quasi-public state agency that supports affordable housing using private bank funds and at no cost to the taxpayer. This is possible due to a 1990 state law that requires companies that purchase Massachusetts banks to set aside a portion of the acquired assets to MHP. Since then, MHP's loan pool has grown to over $1 billion.

In addition to providing technical support to housing development organizations, MHP has provided over $610 million in loans and commitments for the financing of almost 15,000 units of rental housing throughout the state; and has partnered with banks to help nearly 12,000 low and moderate-income families purchase their first home through the SoftSecond Loan Program.