Boston Community Capital (BCC) has been awarded $5.5 million in loans and grants to run a program to help people at risk of foreclosure.
The group was awarded a $5 million low-cost loan and a $500,000 unrestricted grant for its "proven" model to keep people in their homes even once foreclosure has occurred. The Stabilizing Urban Neighborhoods (SUN) program is in the midst of a $50 million pilot in Boston and Revere, in which it purchases foreclosed homes at distressed market prices – before homeowners and tenants have been evicted – and sells the homes back to the original occupants at prices they can afford. By keeping families in their homes, the SUN Initiative stabilizes families and neighborhoods, according to a statement.
BCC was awarded the funds through the Wachovia Wells Fargo NEXT Award in Opportunity Finance. The NEXT Awards, an awards program for community development financial institutions (CDFIs), recognized Boston Community Capital as a CDFI with a history of outstanding accomplishment, extraordinary future potential for growth, innovation and impact, and a high degree of readiness to use and leverage a large, flexible investment successfully, according to a statement.
The other recipient, Washington’s Enterprise Cascadia will receive $2.75 million to continue its "green financing" and initiatives to manage climate change. The new initiative, Clean Energy Works, is a multi-faceted program designed to create jobs while cutting carbon emissions. Its main component is a low-interest consumer loan that finances energy-efficient retrofits for homes and coordinates contractors to do the work. These retrofits reduce the homeowner’s monthly energy costs by an amount roughly equivalent to the loan payment, thus removing an obstacle to implementing energy-efficient measures. Loan repayment occurs on the utility bill, making it easier for homeowners to track and manage their finances.
"On behalf of the selection committee, I want to congratulate BCC and Enterprise Cascadia for being NEXT awardees for 2010," said Mark Pinsky, president and CEO of Opportunity Finance Network, which administers the NEXT Awards with Wachovia Wells Fargo and the John D. and Catherine T. MacArthur Foundation. "Their vision, insight, enthusiasm, and commitment to social responsibility prove that they are leaders for the future of the CDFI industry."
