FOR IMMEDIATE RELEASE
Three philanthropic entities have announced they are partnering with Home Funders to build homes for extremely low-income families. State Street Corporation, Fidelity Management Trust Company, and the Annie E. Casey Foundation have together committed $2.5 million, matched by The Paul and Phyllis Fireman Charitable Foundation and Highland Street Connection.

The $5 million infusion comes as Home Funders approaches a milestone of nearly 1,000 units either under construction or in the pipeline – 271 of those units are specifically for the benefit of families making less than 30% of the median income. Projects for a total of 126 extremely affordable units are already under construction throughout Massachusetts, and 145 more such units in the planning stage have been identified for funding - a strong indication of the impact such financing options can have when applied.

Home Funders uses Program Related Investments to provide low-interest, long-term financing for projects with 30% of the units for extremely low-income families. Home Funders funded its first project in July, 2003, after a group of private foundations took the unusual step of committing $15.5 million in long term investments to spur development of housing for families on the lowest ends of the pay scale. Home Funders loans are distributed through the Massachusetts Housing Partnership (MHP) and the Community Economic Development Assistance Corporation (CEDAC).

Under the guidelines for “extremely low-income” families, a family of four is supported by two parents making minimum wage or a single parent making $11 per hour. At that income, it is impossible to pay market value rents. It is estimated that over 10,000 families in Massachusetts are homeless as a result and thousands more live in sub-standard housing.

“There is an urgent need, and what is commonly called ‘affordable housing’ is tragically and completely out of reach for many working families. The impact of homelessness on these children – from simple nutritional needs to education – can’t be overstated when parents are forced to choose between paying for rent or basic necessities,” said Dan Fireman of the Paul and Phyllis Fireman Charitable Foundation, a founder of Home Funders.

“So great was the need that foundations made the unusual move of dipping into endowments to create a fund that got results, and we issued a challenge to the philanthropic, business and government communities to join us to create a model that makes a concrete impact. We’re getting the results, and today these three respected institutions are providing us the steam to go further,” said Elizabeth Smith, Executive Director of the Hyams Foundation, a Home Funders founding partner.

“The funds originally put forth were put to work almost immediately, a display of the appetite among developers for program related investments,” said Robert Wadsworth of the Boston Foundation, and Chair of the Home Funders collaborative. “We’re changing the equation for affordable housing development, and every new dollar committed has a project waiting.”

State Street Corporation has committed $1 million to Home Funders. George A. Russell Jr., Executive Vice President of Community Affairs for State Street Corporation, noted that “Community development is a prime component of our goals, and the creation of sustainable affordable housing is the most basic element of strong communities. We saw in Home Funders a unique method of leveraging funds to create housing far beyond the dollars committed, and a platform on which to spur greater changes in our efforts to combat the crisis in family homelessness.”

Fidelity Management Trust Company has invested $500,000. The Annie E. Casey Foundation, the first national foundation to join as Home Funders, contributed $1 million.

“Through all our work, we’re committed to putting resources behind initiatives that achieve tangible change and can demonstrate practical planning to effect that change,” said Garland Yates, Senior Associate of the Community Change Initiative of the Annie E. Casey Foundation. “It’s clear to us that our investment will result in community transformations that include creating homes for families. It also provides a national model that proves ending family homelessness is not only an idealistic goal, but a completely realistic one.”

Last fall, The Paul and Phyllis Fireman Charitable Foundation and Highland Street Connection issued a public challenge through a $5 million matching pledge to new partners. $2.5 million is still committed as a matching pledge, and new partnerships are being aggressively pursued. The overall goal was established as a fund of $26 million – these latest infusions bring the total fund to nearly $19 million.

“Our commitment goes far beyond throwing money at a good cause and works cooperatively with government agencies and the non-profit and business community to build the units families desperately need and to spur change in the system until no child needs to grow up without a home,” said JoAnn McGrath, Trustee of the Highland Street Connection. “In one year, we’re on track with many units underway and more coming toward meeting our ten year goal – and we renew our challenge to the philanthropic and business communities to join us.”

# # #