Randy Rice

Overview

Boston Community Loan Fund (BCLF) was established in 1985 by socially responsible investors with a focus on lending to nonprofits for affordable housing in Boston.

In 1994, BCLF established Boston Community Capital (BCC), a nonprofit holding company, to respond to new credit and capital needs in low-income communities.  BCLF became an affiliate of BCC. They also established two new nonprofit affiliates: Boston Community Venture Fund and Boston Community Managed Assets.  Together, these organizations comprise the BCC organization. Their mission is to build healthy communities where low-income people live and work.

BCLF serves as a financial intermediary that connects low-income people and communities to the mainstream economy.  They provide a range of existing financial vehicles, products and services and strive to create new ones; they also act as an investment banker for low-income communities.

Client Population

While the majority of BCLF’s lending is in MA, the Loan Fund is not geographically limited, and has recently made loans in Connecticut, New Jersey and Washington, DC. All BCLF borrowers serve low-income communities or individuals, with 82% of its borrowers’ clients having household incomes below 80% of the area median income; 60% of its borrowers’ clients are minorities; and a significant portion are female-headed households.

Impact

BCLF currently has more than $100 million in assets under management.  It provides a wide range of debt products to nonprofit and community organizations and for-profit developers who share the mission of serving low-income people and communities.  The affordable housing financing BCLF provides has created more than $116 million in equity for first-time homeowners, and has helped save low-income families nearly $600 million in cumulative rent. BCLF has expanded beyond their initial focus on affordable housing to include commercial real estate, organizational working capital, and social and community services, such as day care facilities and community arts programs.   Since 1985, the Loan Fund has lent more than $240 million – more than three quarters of that lending has occurred in the last five years.

Since 1985, BCC has made more than 400 loans and investments totaling more than $370 million to support organizations and businesses that benefit under-served communities.  These loans and investments have helped:

• Build or preserve affordable homes for 8,500 families and individuals
• Strengthen more than 300 community organizations
• Support child care facilities and youth programs serving 7,000 children
• Renovate 530,000 square feet of commercial real estate in distressed communities, and
• Create more than 1,400 jobs in low-income communities.

Programs

In 2007, BCC launched Aura Mortgage Advisors, a mortgage brokerage business dedicated to helping people understand the mortgage process and own a home they can afford. Aura works to educate future hopeful homeowners on the perils of predatory lending practices, teaching them how to pick the right mortgage options, and helping them make well-informed decisions throughout the process.

BCC Solar Energy Advantage (BCC SEA) works to stabilize and reduce energy and utility costs of existing affordable housing by improving their energy efficiency, conservation and renewable energy use.  BCC SEA also administers the Green Building Production Network, a private sector consortium of financing, technical assistance and advocacy organizations dedicated to providing Community Development Corporations with financing and tools to design and build “greener” and healthier homes for low-income residents.

Investing with BCLF

On behalf of our clients, Trillium Asset Management Corporation (“Trillium”) made its first investment with BCLF in 1986. Trillium’s Director of Finance and Administration, Linnie McLean, has been a member of BCLF’s Loan Committee since 1997. On our client’s behalf, Trillium will make investments in BCLF of at least $5,000 for a minimum term of two years.

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