Boston Community Capital

Boston Community Capital
Name	Boston Community Capital
Type	Community development financial institution
Founded	1985
Headquarters	Boston, Massachusetts
Area served	New England; United States
Key people	Pam Johnston; Jay Williams
Products	Community development loans; mortgage lending; small business financing; New Markets Tax Credit investments

Boston Community Capital is a nonprofit community development financial institution headquartered in Boston, Massachusetts. It provides capital, loans, and technical assistance to underserved neighborhoods across New England and the United States, with programs targeting affordable housing, small business development, and community facilities. The organization operates at the intersection of urban revitalization, social impact investing, and public policy advocacy.

History

Founded in 1985 amid efforts to revitalize urban neighborhoods in Boston, Massachusetts, the organization emerged during a period of activism associated with local development initiatives and national policy debates such as the aftermath of the Community Reinvestment Act discussions. Early activity connected the group to affordable housing campaigns in neighborhoods affected by deindustrialization in Greater Boston, collaborations with institutions like the Massachusetts Housing Finance Agency, and nonprofit networks including Local Initiatives Support Corporation and NeighborWorks America. Over subsequent decades the organization expanded financing capacity through participation in federal programs including the Low-Income Housing Tax Credit and the New Markets Tax Credit, while working alongside municipal actors from the City of Boston to suburban and rural partners across Massachusetts, Connecticut, Rhode Island, and Maine.

Mission and Programs

The organization’s mission emphasizes equitable access to capital for underserved communities, aligning with initiatives spearheaded by foundations such as the Ford Foundation and Surdna Foundation and advocacy coalitions including Prosperity Now and the Center for Community Capital. Programmatic areas include affordable rental housing preservation, homeownership counseling linked to NeighborWorks America standards, financing for community health centers like Fenway Health-affiliated providers, and commercial corridor revitalization in partnership with local chambers such as the Boston Chamber of Commerce. Workforce development collaborations have included links to entities like the Federal Home Loan Bank of Boston and philanthropic partners such as the Kresge Foundation.

Financial Products and Services

The organization offers a suite of financial products tailored to community development needs: predevelopment loans, construction financing, permanent mortgage products, small business working capital, and subordinated debt. It leverages federal tools like the New Markets Tax Credit program administered by the Community Development Financial Institutions Fund and utilizes capital from intermediaries such as the Low Income Investment Fund and the Roca network. Investors have included national banks referenced in Community Reinvestment Act compliance relationships, regional lenders like Eastern Bank and Rockland Trust, and philanthropic investment arms including Robert Wood Johnson Foundation program-related investments. The entity has employed credit enhancements from agencies such as the MassHousing authority to de-risk transactions.

Impact and Community Development Initiatives

Projects financed have included preservation of multifamily affordable housing in neighborhoods impacted by gentrification dynamics observed in Dorchester, Boston and Roxbury, Boston, rehabilitation of historic commercial blocks on corridors similar to Washington Street (Boston) contexts, and creation of community facilities analogous to charter school and health center projects affiliated with KIPP Public Charter Schools and Community Health Centers networks. The organization reports outcomes in units preserved, jobs retained or created in partnership with MassHire career centers, and catalytic investments that have leveraged capital from entities like the American Cities Foundation and municipal bond issuances overseen by state treasuries. Impact evaluation methodologies have drawn on frameworks used by Urban Institute and Federal Reserve Bank of Boston research.

Governance and Leadership

Governance is conducted by a volunteer board of directors drawn from leaders in banking, philanthropy, real estate, and nonprofit sectors, reflecting governance practices similar to those at institutions like Enterprise Community Partners and Habitat for Humanity International. Senior leadership has included executives with experience at development banks, civic finance offices such as the Massachusetts Development Finance Agency, and national CDFI networks led by peers at Opportunity Finance Network. Board committees oversee audit functions with auditors comparable to regional firms and compliance aligning with regulations influenced by the Office of the Comptroller of the Currency and federal chartering norms for financial intermediaries.

Partnerships and Funding Sources

The organization partners with federal agencies including the Department of Housing and Urban Development and the Economic Development Administration, state entities like the Massachusetts Department of Housing and Community Development, local governments including the City of Boston and municipal housing authorities, national philanthropies such as the Lily Endowment and the Charles Stewart Mott Foundation, and private-sector banks involved in Community Reinvestment Act partnerships. Capital sources span mission-driven investors, program-related investments from foundations, catalytic capital from entities like the Z. Smith Reynolds Foundation, and syndication relationships with national lenders including Wells Fargo and regional institutions similar to Santander Bank for community investment mandates.

Category:Non-profit organizations based in Boston Category:Community development financial institutions