Nonprofits play a critical role in developing affordable housing and preserving housing in communities where there are limited affordable housing opportunities for lower-income households.  Community Development Corporations (CDCs) and other nonprofit housing developers produce hundreds of housing units annually, providing first-time homebuyer opportunities, affordable rental units, and permanent housing options for transitional and at-risk populations.  Nonprofit housing organizations facilitate challenging real estate deals (even when they are not the actual developer), invest in weak markets, and often structure their contracting to create more opportunities for women and minority contractors and low-income residents.  In return they receive low fees and very limited financial support for their work, making it a significant challenge to meet their mission.  

While a critical player in the housing arena, nonprofits compete for often meager operational and project funding.  Equity and programmatic funding are often hard to secure for CDCs, especially since the elimination of the state’s Community Enterprise Economic Development Program.  

Nonprofits are also burdened by complex funding systems and multiple layers of financing that make it increasingly difficult to create a revenue stream sufficient to sustain their programs.  These financial challenges also weaken the sector’s ability to engage in pro-active planning, community engagement and community building that can support housing development and other neighborhood goals.

7.a    The Massachusetts Housing Partnership’s Housing Production Support Program should be increased to $2 million annually

7.b    The Department of Housing and Community Development should revise scoring criteria for the Qualified Allocation Plan in regard to MetroFuture consistency and nonprofit participation

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