Introduced in May, Community Development advances are fast becoming members' hands-down choice for funding affordable housing and economic development. It's no wonder why. The discounted advances are an easy way for members to support much-needed initiatives in their communities.

As of September 30, 27 members had successfully applied for a total of $177.2 million in Community Development advances to fund 67 affordable- housing, economic-development, and mixed-use initiatives. An even more versatile resource than the Community Investment Program (CIP) and CIP Plus advances they replaced, the new advances offer higher income limits for economic-development initiatives and no reporting requirements.

One Massachusetts member has been quick to demonstrate how Community Development advances can meet a variety of funding needs. Medford Co-Operative Bank has applied for almost $13.5 million to help finance nine very different initiatives in Massachusetts and New Hampshire.

Funding Affordable Housing
Medford Co-Operative will use a $4 million Community Development advance to fund its long-running first-time home-buyer program. As a result, an additional 25 very low-, low-, and moderate-income buyers will receive discounted mortgages.

The member will also use a $200,000 advance to help a homeless shelter buy a two-family home in Malden, Massachusetts. Malden-based Shelter, Inc., will rent the units to moderate-income tenants moving from transitional housing to independent living.

A $1.9 million advance will allow Medford Co-Operative to finance the construction of 24 condominiums in Malden. F&M Realty Trust will sell up to five units to the Malden Redevelopment Authority, which will rent them to moderate-income tenants. The remaining units will be sold to households earning up to 115 percent of the area median family income.

In addition, the member will use a $2 million advance to finance the acquisition and construction costs of a seven-home subdivision in Beverly, Massachusetts. Tower Homes, Inc., of Tewksbury, Massachusetts, will make five homes available to moderate-income households and will sell two at market prices.

About 20 out of 24 new homes in Portsmouth, New Hampshire, will soon welcome moderate-income families — thanks to a $2.2 million advance. Medford Co-Operative used the advance to fund the subdivision's acquisition and construction costs. The developer is Hawthorne Estates Realty Trust of Wilmington, Massachusetts.

Funding Economic Development
Medford Co-Operative will also use Community Development advances to finance a diverse group of non-housing endeavors that create or retain jobs for individuals earning up to 100 percent of the area median family income or otherwise benefit income-eligible households.

For starters, the member will use a $300,000 advance to help fund the construction of Knowledge Beginnings, Inc., a day-care center in Chelmsford, Massachusetts. The facility will serve families earning at or below the area median family income, and will create about 31 jobs for low- to moderate-income individuals.

Meanwhile, a $900,000 advance will support the Hoffs Kitchen Company's purchase of a new factory. The initiative qualified for an economic- development advance because it will allow the Medford-based bakery business to expand its business, creating additional positions for low- to moderate-income employees.

A $700,000 advance will help finance Ocean Realty Trust's acquisition of a building in Billerica, Massachusetts, which it will rent to a motorcycle dealership. The initiative qualified for the advance because most of the dealer's employees earn at or below the area median family income.

Finally, a $1.3 million Community Development advance will help the member refinance two retail stores and a gourmet food store in Lexington, Massachusetts. The refinancing qualified for the advance because eight of the stores' 11 employees earn less than the area median family income.

To provide substantial support to the many worthwhile initiatives in their communities, members can take down a total amount of Community Development advances equal to the greater of $10 million, 100 percent of their average amount of capital stock held in the previous year, or 15 percent of their average balance of advances outstanding in the previous year.

For eligibility guidelines or an application for a Community Development advance, visit the Community Development advances section.