Chelsea, MA — In a strategic move aimed at bolstering affordable housing in Massachusetts, First Citizens Bank has announced a $1 million investment to support The Neighborhood Developers (TND) in its efforts to combat displacement in the Greater Boston area.
The investment, made through an Equity Equivalent Investment (EQ2), will be managed by Opportunity Communities (OppCo) under the newly established OppCo Housing Accelerator Fund.
The OppCo Housing Accelerator Fund is designed to provide crucial predevelopment and acquisition financing to community developers, offering them access to capital at favorable rates. The fund’s goal is to strengthen the capacity of community developers to increase affordable housing production and preservation in an environment where rising property prices threaten to displace low- and moderate-income residents.
“Community developers can’t keep up with the demand for affordable housing with rising prices in Greater Boston,” said Kathy McGilvray, CEO of OppCo. “Many multifamily properties now sell at prices that can only be justified by 25% or higher rent increases, causing displacement in the communities that our member-CDCs serve. This fund provides low-cost capital to support CDCs to advance their affordable housing production and preservation efforts.”
TND, a nonprofit organization committed to revitalizing neighborhoods and creating affordable housing, will direct the funds to expand its anti-displacement initiatives. By enhancing their capacity to acquire, develop, and preserve affordable housing, TND aims to address the growing affordability crisis in one of the nation’s most expensive housing markets.
Fiona Hsu, Head of Community Development Finance at First Citizens Bank, expressed her company’s commitment to tackling the affordable housing crisis. “First Citizens Bank recognizes the urgent need for affordable housing units in Massachusetts, and we are dedicated to investing in their financing through our CDFI/CDC partners,” she said. “We are pleased to partner with OppCo with the shared goal of building sustainable, long-term, thriving communities in the towns and cities that we serve.”
The collaboration between First Citizens Bank, OppCo, and TND marks a significant step forward in the effort to preserve affordable housing and prevent displacement in Greater Boston. As property values continue to rise, initiatives like these are essential to ensuring that long-time residents are not priced out of their communities.
