MAGGIE TOMKIEWICZ
“The [MAR Housing Opportunity Fund] program is a way to give back through normal business practice and get buyers and sellers involved in the community.”

A partnership between the Massachusetts Association of Realtors and TD Banknorth that offers brokers, buyers and sellers the opportunity to help provide housing for needy or displaced residents has just begun to play a part in the commonwealth.

The MAR Housing Opportunity Fund, or MARHOF, allows Realtors who get permission from their buyers and sellers to donate interest earned from deposits placed in escrow to the MAR Charitable & Educational Foundation’s Housing & Homeless Assistance Grant program. The funds are then dispersed to area organizations that supply help to those in need of shelter.

TD Banknorth has committed to hosting the MARHOF account and has waived transfer fees for firms that choose a TD Banknorth location to set up their accounts. In an attempt to kick-start the effort, the bank also contributed $5,000 in seed money through its own charitable branch.

Although the program was conceived and began development in 2004, MAR recently sent out an announcement in order to get the program into the hands and minds of local real estate offices in the hopes of making a difference on a local and statewide level.

“The MARHOF program is a way to give back through normal business practice and get buyers and sellers involved in the community,” said Maggie Tomkiewicz, president of MAR.

Joining with MAR seemed to be a natural partnership for TD Banknorth.

“Their footprint is the whole state and ours is, too. At TD Banknorth economic development, particularly in the affordable housing arena, has been a key charitable giving focus. That fit well with what MAR wanted to do and meant that we could reach further into markets we wanted to assist,” said Maria Wilson, vice president of community relations at TD Banknorth.

The program was designed to fit in with the existing real estate transaction process. Currently, a large number of agents and brokers place funds in a non-interest bearing escrow account. The MARHOF program shifts deposits in an interest-bearing account and uses the funds accrued over the typical 40-day period.

‘The Greater Good’

“A lot of Realtors have escrow accounts but don’t collect interest. This is an avenue that they can do with permission of buyers and sellers and have the interest go to the greater good, go to charity,” said Tomkiewicz.

Although the amount of interest that is garnered over the short term is only a matter of a few dollars – especially because the deposit funds tend to be relatively small – it can have an impact.

“Accounts stay in for maybe four to six weeks, so you’re not accruing that much money, but when you pool it all together it will make a great difference for organizations that need this so desperately,” said Sandra L. DeRienzo, chairman of MAR’s Charitable Education Foundation and a Realtor with Paula K. Aberman & Assoc. in Lancaster.

“If you figure that there are well over 1,000 real estate companies throughout Massachusetts – with something like 21,000 Realtors, all donating interest – well, that adds up,” said Tomkiewicz.

The MARHOF program just recently received its first enrollment form from Kathy Borawski, broker-owner of ReMax Hill and Valley in Northampton, who had received the letter sent from MAR.

“I’m quite a procrastinator. The letter has been sitting on my desk for two weeks and I told myself that I wanted to think about it, but then I just realized that I’d be stupid not to do this,” said Borawksi. “It’s a no-brainer. It’s a great program. My money’s been sitting in a non-interest-bearing escrow and if I added up all the money I could have made over the years, it’d be a lot. Now that will all go to a good cause.”

A slow start, however, does not necessarily mean that the program’s future is in question.

“All the forms have gone out and the response is a little slow, but this is a busy time for Realtors,” said DeRienzo. “This program couldn’t be easier. I can’t imagine anyone finding a reason not to do this.”

Those at TD Banknorth were similarly optimistic.

“It’s just started. It really just got off the ground. I think it will be well received in the market with Realtors, but also with buyers and sellers,” said Wilson. “The dollars are minimal to each buyer or seller; they aren’t out of pocket. They’re doing a great thing without feeling a big impact on their wallets.”

Though the MARHOF program is only in its fledgling stages, MAR’s Charitable & Educational Foundation has been donating to area and national organizations for years. Between 1992 and 2004, it distributed $49,600 in disaster assistance relief grants, $62,500 in educational scholarships, $30,200 in housing and homeless assistance grants and $24,500 in other charitable contributions.

Examples of donations include $10,000 to the Florida Association of Realtors Disaster Relief Fund to aid property owners affected by hurricanes Charley, Frances and Ivan in 2004; $1,500 to the Berkshire Emergency Fund for Homeless Children in Pittsfield/Great Barrington; and a three-year commitment to donate $5,000 to Habitat for Humanity Massachusetts.