In the early morning hours of January 6^th, in the last sitting of the 192^nd General Court – merely hours before a new legislature would be sworn in, legislators approved the conference report to advance a comprehensive economic development, housing assistance and pandemic relief bill to the Governor’s desk. MACDC was very pleased that the legislature was able to enact this bill that will support small businesses, promote affordable and equitable housing opportunities, and, especially to our neighbors most disproportionately impacted by COVID-19, provide additional tenant protections across the Commonwealth.

Last June, MACDC was invited to testify before the Joint Committee on Economic Development and Emerging Technologies to offer our best recommendations for meeting some of the longstanding issues and emergent challenges brought to light in the wake of the COVID-19 pandemic. Both branches recognized the serious challenges facing our small business community, people of color, immigrants, women, and low- or moderate-income workers and consumers, and focused considerable efforts and resources to avoid deepening the fissures of racial and economic inequality in our state. We appreciate the resolute commitment of so many legislative champions and community partners to achieve this result.

(Separately, the legislature also finally approved Boston’s Home Rule Petition to allow for linkage and inclusionary zoning in Boston – a long sought victory for our Boston members.)

Several MACDC priorities were adopted as part of the Economic Development Bill and, at this time, await the Governor’s signature. Here is a summary of the conference agreement.

The bill includes many important programs and legislative changes impacting housing, small business development and economic development.  You can get in depth details by reading the bill ( Bill H.5250 (malegislature.gov)), and here are select highlights, which we believe will be of interest to our members: 

• Housing Choices legislation which allows municipalities to adopt pro-smart growth zoning changes by a simple majority.
• Zoning for multifamily housing will be required in all MBTA Communities. 
• Appeals Reforms (abutter appeals)
• $20 Million Expansion of State LIHTC
• Tenant Board Members at local housing authorities 
• Eviction Record Sealing
• Tenant Opportunity Purchase Legislation.

The legislation also authorizes a wide array of capital programs aimed at housing, economic development, and small businesses. These additional programs of interest include:   

Nuestra Comunidad's now completed Bartlett B Project was a part of the Boston Pilot Program. (Photo courtesy of Nuestra Comunidad) 

MACDC has been committed to the movement for racial and economic equity since its inception. To solidify this commitment, MACDC has pledged, in its 2018-2023 Strategic Plan, to contribute to the movement by working in four areas of economic development.

“We will continue our long-standing commitment to expanding small business development as a means of building wealth and community assets. To further reduce geographic inequity, we will help to build thriving neighborhoods and rural communities with stores, services, jobs, amenities, transportation and other assets and opportunities. We intend to help our members deliver effective financial empowerment programs to reduce income and wealth inequality. Finally, we will advocate for public policies that promote greater racial and geographic equity. To advance this vision, CDCs, Community Development Financial Institutions (CDFIs) and other community-based groups will need enhanced capacity, access to resources, and stronger public policies.”

Boston Pilot Program

A key initiative in this effort is the Boston Pilot program. In 2012, MACDC and the Massachusetts Minority Contractors Association (MMCA) launched a pilot initiative to achieve higher rates of minority- and women-business participation in CDC-sponsored construction projects in the city of Boston.  Four years later, we expanded the partnership (Phase II) to include four more CDCs and to extend the program to Greater Boston.

The original program included six Boston-based CDCs (Madison Park Development Corporation, Dorchester Bay EDC, Jamaica Plain NDC, Codman Square NDC, Nuestra Comunidad, and Urban Edge) that originally enrolled 12 projects in the program and generated collectively more than $61 million in business opportunities for minority- and women-owned businesses (M/WBEs).  Four additional CDCs – Somerville Community Corporation (SCC), Neighborhood of Affordable Housing (NOAH), Inquilinos Boricuas en Accion (IBA), and Asian CDC – have now joined the partnership and, collectively, have identified 25 projects with total development cost of $634 million, expected to be completed by 2021.

CDCs participating in the program commit to (1) best faith efforts to achieve 30% MBE and 10% WBE utilization on these construction projects, (2) meaningful opportunities for MBEs and WBEs to serve as general contractors, (3) meaningful opportunities to provide professional services to the project (i.e. legal, architecture, consulting, engineering) and (4)  to participate in regular meetings that offer peer-learning, trouble-shooting, and networking events with the broader M/WBE business communities to advance the goals of each CDC and the program overall.

While the focus of this program remains on M/WBE participation – projects reporting as of March 2019 reflect rates of 32% MBE and 9% WBE Contractor Procurement percentages – there is consistent evidence that achieving these goals also will result in the hiring of more people of color on these projects, thereby achieving additional value in our efforts to increase the diversity of the workforce and for expanding economic opportunity across our communities.

Small Business Technical Assistance

Another key initiative promoting racial and economic equity is the Small Business Technical Assistance (SBTA) program.

The Small Business Technical Assistance (SBTA) grant program has been successfully serving businesses for over a decade, and MACDC has been the principal statewide advocacy organization promoting increased funding for this program.  The program is also supported by the Black and Latino Advisory Commissions both of which embraced the program in 2019 in their first set of priorities and recommendations.

After leading a statewide campaign, MACDC was grateful in July when the Baker administration and the Legislature agreed to increase funding for this program to $3.1 million in FY 2020 – a 50% increase from the prior year – that will empower an outstanding network of “Grantees,” – CDCs, CDFIs, and other community-based groups – to continue to help small businesses grow and thrive in every community. These grants range from $10,000 to $120,000 and allow CDCs and other community-based organizations to provide customized management and operational assistance, financial training, and lending services to small businesses. These resources are targeted to serving low- and moderate-income communities.

MACDC also has advocated for a related Microlending and Community Development Capital Program, which was reauthorized through the 2018 economic development bond bill at $1.25 million.  The Microlending program enables program partners to leverage more federal and private funding. For example, the national CDFI program requires a dollar-for-dollar match, and the Small Business Administration Micro Loan Program requires a 15% local match. This program helps Massachusetts leverage more of these funds. This year, the Baker Administration is making $250,000 available through this program and we will be advocating to increase that number next year.  

Massachusetts needs a strong network of community-based small business programs in order to address decades of structural and systemic racism that has led to the racial wealth gap in Massachusetts and across this country.  By advocating for the Small Business Technical Assistance and Micro Lending programs, we hope to contribute to closing that gap and helping more people of color and immigrants build their business, create wealth and expand opportunities for communities of color across the state.

MACDC is grateful to the Baker administration and the Legislature for funding the Small Business Technical Assistance (SBTA) Program at $2 million in FY 2019 (line item 7002- 0040), and we are pleased that the Massachusetts House of Representatives voted to increase SBTA funding to $3 million in its budget approved in April – a proposed 50% Program increase for FY 2020.

We are not done yet, and we’ll need your help next week, as the Senate begins debate on its FY20 budget on May 21st.

Last fall, the Baker administration and the Massachusetts Growth Capital Corporation (MGCC), announced $2 million in grants to 40 organizations. The grants range from $10,000 to $120,000 and will allow CDCs and other community-based organizations to provide customized management and operational assistance, financial training, and lending services to small businesses; these resources are targeted to serving low- to moderate-income communities.

There has been growing demand for these technical assistance and program resources; last year MGCC received requests for almost $4 million, and the demand for the program has almost tripled since it was launched in 2007.
Since then, MACDC has been seeking to increase SBTA Program funding to $4 million, in as much as the January 2018 Massachusetts Gaming Commission report, "Reinvesting the Gaming Economic Development Fund," recommended strategies to fund priorities, one of which was deemed to be support for small business technical assistance and lending.

We need your help to increase funding for the SBTA Program in FY 2020. The Senate Committee on Ways and Means has recommended level funding ($2 million) for SBTA.  However, Sen. Diana DiZoglio will be offering an amendment (#19) to increase funding to $4 million.  Please, take a moment to call your state senator and ask them to co-sponsor and support the DiZoglio amendment (#19) to increase funding SBTA at $4 million.

In a $42.7 billion state budget, $4 million represents less than 1/1000th, and it is not an unreasonable amount to request to ensure that small businesses continue to grow and thrive in every community.

Governor Baker was first exposed to the MA Food Trust program at a briefing with the MACDC Board, May 2016.

After more than 6 years of advocacy to establish, fund and launch this program, the Baker-Polito Administration has fulfilled its quest by providing over $1 Million in funding to increase access to healthy, local food options and by selecting co-administrators for the Massachusetts Food Trust Program.  The MA Food Trust Program, a recommendation from a study by the Massachusetts Grocery Access Task Force, was established in law in 2014.  Since then, the Massachusetts Public Health Association (MPHA) has led a statewide coalition of nearly 100 organizations to build legislative and administration support to develop, fund and implement a program, which fulfills our shared values:  good for jobs, good for communities and good for health.  MACDC has been proud to partner with MPHA and the Healthy Food Financing Working Group in pursuit of this vision.  Congratulations to MPHA, and the organizations that have been selected to administer this statewide program, the Local Enterprise Assistance Fund (LEAF) and Franklin County CDC.

For more information on the award announcement, read the Baker Administration’s press release here:  https://www.mass.gov/news/baker-polito-administration-awards-over-1-million-in-funding-to-increase-access-to-healthy

The Massachusetts Senate is nearing the end of its week-long debate on its $41.4 billion budget, and, on balance, it has been a strong week for CDCs and our partners that serve small businesses and bring economic and housing opportunities to underserved families in communities across the Commonwealth.  Before jumping into the budget thicket, I’m excited to report that – during those intense deliberations – the conference committee completed its negotiations on the Housing Bond Bill, which was approved subsequently by both branches!  The $1.8 billion Bond Bill is on its way to Governor Baker, and, yes, it includes the extension and expansion of CITC through 2025!

Special thanks to Rep. Kevin Honan and Sen. Joseph Boncore, co-chairs of the Joint Committee on Housing and the conference committee, the lead conferees – Reps. Joe McGonagle and Brad Hill, Sens. John Keenan and Patrick O’Connor – and House Speaker Robert DeLeo and House Ways & Means Chairman Jeffrey Sanchez and Senate President Harriette Chandler and Senate Ways & Means Chairwoman Karen Spilka.  (See the attached summary of the final bill for more details.)

As to the Budget debate, here are a few highlights for MACDCs’ community and economic development priorities that have been addressed by further amendments and are in the final Senate Budget:

Small Business Technical Assistance (Sen. Julian Cyr, #796)

We were pleased to see that Governor Baker’s FY 2019 budget submission proposed to restore funding for SBTA to $2 million.  The House budget also would provide $2 million to this program.  As many of you know, our main FY 2019 budget priority has been to restore funding the SBTA program (line item 7002-0040) to at least $2 million.  Sen. Julian Cyr reintroduced his amendment from last year, to fund the Small Business Technical Assistance (SBTA) program at $2.5 million.  (The Senate Committee on Ways and Means had proposed $1.25 million for this program.)  The Senate adopted a “redraft” of Sen. Cyr’s amendment to provide $1.5 million.  We are extremely grateful to Sen. Cyr and his 12 colleagues who joined him as cosponsors (Sens. DiDomenico, Hinds, Gobi, Eldridge, Moore, Fattman, Welch, L’Italien, Collins, Tran, O’Connor and Brownsberger), and further encouraged by his commitment to help us secure greater funding in the Budget conference committee.

Chapter 206 – Homeownership Education and Foreclosure Prevention Counseling (Sen. Eldridge, #684)

We are pleased to report that the Senate adopted an amendment by Sen. Jamie Eldridge to add an additional $500,000, for Chapter 206 funding from the MA Division of Banks (DOB) (line item 7006-0011), to enable nonprofit counseling agencies to provide homebuyer education and foreclosure prevention counseling.  (The Administration has proposed $1.55 million – and the House concurred – which they say is sufficient to enable DOB to cover their own administrative costs and provide $1.3 million in grants to non-profit organizations, essentially level funding. Funding is possible through administrative fees associated with the licensure of loan originators, according to Chapter 255F of the Massachusetts General Laws, under which DOB may use retained revenue to fund this program.  Grants are awarded through a competitive application process under criteria determined by DOB. The Eldridge amendment (redraft #864) will increase funding to $2.05 million.  Please express your compliments and gratitude to Sen. Eldridge and his cosponsors:  Sens. Hinds, L’Italien, Collins, O’Connor, and Welch.

Community Preservation Trust Fund (Sen. Cynthia Creem, #3)

Cities and towns that adopt the Community Preservation Act (CPA) draw funds from two sources – a local property tax surcharge and an annual distribution from the statewide CPA Trust Fund.  State matching funds are projected to decline to 11% in 2018.  MACDC supported the amendment and is grateful that the Senate unanimously adopted Sen. Creem’s proposal for a $30 increase to the recording fees at State Registries of Deeds – unadjusted since it was established 18 years ago – to provide a 30% (estimate) CPA Trust Fund first round distribution for all CPA communities across the Commonwealth.

[Note:  When the Senate completes its budget, a conference committee of House and Senate members will be convened to reconcile the differences between each chamber's bill and to send a consolidated budget agreement to the Governor, ideally by June 30^th.]

We appreciate the support CDCs receive from so many of the members in the Legislature, including many of its leaders who aren’t direct cosponsors listed above, and have offered tremendous guidance and support to shape other important legislation in addition to the budget.  CDC members work to help prepare families and small businesses to meet economic challenges in every corner of the Commonwealth.  The important initiatives we have outlined above are helping families and businesses to succeed, and we couldn’t do it without them, or you, so be sure to say, “thanks.”

And, thank you for your advocacy.

By any objective measure, MACDC’s 2018 Lobby Day was a tremendous success.  On April 24, more than 150 community development practitioners and patrons filled the MA State House, with passion and vigor, both to thank the Governor and legislators who have supported important community economic development priorities this past year and to urge decisive action for completing important legislation before the end of the session on July 31st. 

Lobby Day coincided with the beginning of the House of Representatives’ week of formal budget debate.  Because of months of planning, outreach and engagement – primarily through State House meetings, committee hearings and in-district “Doughnuts” meetings – CDCs had secured broad support from Governor Baker, legislators and the House Committee on Ways and Means for several important budget priorities. In January, the Governor had proposed to restore funding for the Small Business Technical Assistance (SBTA) program to $2 million in FY 2019, and to provide sufficient funding through the Division of Banks to provide at least $1.3 million for the State’s Chapter 206 grant program, which allows nonprofit partners to offer homebuyer education and foreclosure prevention counseling in communities across the Commonwealth.  Chairman Jeff Sanchez and the House Committee on Ways and Means adopted these recommendations and the full House of Representatives passed in its budget late last week.  (We encouraged senators to support these same policy initiatives through its budget process beginning in May.)

Fortunately, at this time the legislature already has advanced two of our most important priorities to a conference committee – the extension and expansion of the Community Investment Tax Credit (CITC) program and a five-year extension of a $1.7 billion Housing Bond Bill – and should complete its compromise deliberations and send a bill to Governor Baker in the next few weeks.

Thus, MACDC members and its partners fanned out around the State House to thank legislators for this support and to encourage them to complete action on statewide zoning reform and restored state funding for the Community Preservation Trust Fund before the end of the legislative session July 31st.

MACDC’s Board met with Governor Baker to express our gratitude for his support and to highlight several key CDC member initiatives, to address community health disparities and low-income homeownership challenges, which may foretell important state - community partnership opportunities in the years ahead.

At the noon luncheon, a boost of encouragement was offered in remarks made by retiring Rep. Steve Kulik of Worthington, a longtime champion for our community economic development priorities (e.g., zoning reform, SBTA, CPA, CITC, Rural Policy Commission, etc.) who vowed to make a strong push through the end of his term.  Senate President Harriette Chandler was the keynote speaker and she reiterated her commitment to housing affordability and her full-throated support of CDCs (see, prepared text of her remarks) offered a power chord for a chorus of activists to take heart from the rest of this session.

Fire away!

As members of the Massachusetts Smart Growth Alliance (MSGA), MACDC enthusiastically endorses the Great Neighborhoods campaign, led by MSGA, which is all about safeguarding and securing many of the things we all care about: better housing choices for families and seniors; more vibrant, walkable downtowns that promote healthy living and local businesses; and a development approach that preserves natural resources and protects us from climate change.

You may already know some of the following unfortunate facts:

· The median home sale price is now over $400,000 while the median rent in the state is $2600 per month. Nearly some quarter-million families in Massachusetts pay more than half their income on housing.

· At the same time, 13 acres of open space are lost to sprawling development in Massachusetts, and the average single-family lot in Metro Boston is now larger than a professional football field.

· At least 52% of Americans want to live in places where they do not have to use a car often.

You can learn more about the Campaign, sign the petition, and read the Call to Action here, which lists organizations that endorse these shared principles. Please contact Larry Field at the MA Smart Growth Alliance if your organization can endorse the Campaign. His email address is larry@ma-smartgrowth.org.

A broad range of organizations has joined the Great Neighborhoods campaign to promote its core principles and to call on state leaders to pass a strong bill this session that addresses the housing crisis and looks to create healthier, walkable places to live and thrive. We urge that your organization join the Great Neighborhoods campaign and that you individually sign the petition calling on state leaders to act!