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The Bank's Advisory Council is comprised of 14 members appointed
by the Bank's board of directors. Council members represent affordable-housing
and community-development organizations from each of the six New
England states. Two are executive directors of state housing finance
agencies (HFAs) who serve for one three-year term on a rotating
basis among the region's six HFAs. Twelve are executive directors
of community-development organizations — two from each state
— who serve a three-year term with an option to renew for an
additional three-year term.
The council plays an important role in keeping the Bank's affordable
housing and community-lending initiatives responsive to regional
needs across New England. Mark Nolan, one of five council members
who completed their terms at the end of 2004, noted that the council's
diverse composition is critical to its mission. "The Advisory
Council helps us reach out and share information across the different
parts of New England. We talk about proper planning and utilize
others' success stories to help people in need within our
own communities," Mr. Nolan said.
John Eller, senior vice president of housing and community investment
at the Bank, added, "The Advisory Council connects the Bank
with the community development networks and their practioners across
New England. The council partners with the Bank's board of directors
and senior staff to help the Bank target its community-lending agenda
and programs. It also reviews the Bank's Community-Lending and Affordable-Housing
Implementation Plans each year and recommends any needed changes
to the board of directors."
Linda Harvey, another council member whose term ended in December,
commented, "As a rural developer, I appreciated the opportunity
to highlight the unique realities of rural development and see the
Bank recognize these issues in its Affordable Housing Program. Through
the Advisory Council, the Bank has access to knowledge of affordable-housing
development from folks in the trenches, and uses that knowledge
to shape its policies."
Council members have a very real sense of how community lending
works because they put these types of deals together every day.
"By sharing their experience with the Bank, we are able to
make sure our programs work effectively," said Mr. Eller. "Council
members also share information and best practices through articles,
forums, and dialogue. Learning about strategic planning that meets
the specific needs of one region is quite useful for another region
facing similar challenges."
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Nolan. |
"Council discussions regarding topics like smart growth and
regulatory concerns would often result in the Bank hosting valuable
symposiums to examine these issues," said Ms. Harvey. "In
this way, the Advisory Council helps to position the Bank as an
educational resource for the New England community."
When addressing affordable housing within a particular community,
Mr. Nolan was quick to point out that each region has highly specified,
yet equally dramatic housing needs. He explained, "Affordable
housing is really about creating housing to meet an area's needs.
In Boston, there might be a pressing need for housing for doctors
who work in the city's numerous medical facilities, as well as a
high demand for affordable housing for low- to middle-income sectors
of the community."
The often competing economic needs within a municipality can further
complicate matters. "Homeownership is a huge priority, and
affordable rental housing is also important. As costs drive up budgets,
cities need more money from their tax base. That's why town taxes
typically don't go down. You frequently see two to three percent
annual increases because of growing costs of running schools and
maintaining infrastructure. If your tax base is primarily residential,
the tax burden on those residents is unbalanced," said Mr.
Nolan. A better strategy would be to foster a mix of industrial,
commercial, and residential elements that would allow taxes to be
distributed more evenly across the community.
Municipalities can sometimes lose sight of this when evaluating
new housing opportunities. A large track
of $300,000 to $400,000 houses might be appealing in terms of potential
tax revenue. However, the resources used by these households (schools,
roads, etc.) can quickly outpace their individual tax contributions.
This is why it is vital to help educate communities, regional planners,
and elected officials regarding strategic planning for the municipality.
Mr. Nolan believes that Advisory Council members have a unique
opportunity to influence a town's approach to planning. "We
can help encourage municipalities to look beyond meeting minimum
requirements for planning and zoning. We can make ourselves available
to show that proper development can assist communities in meeting
their growing financial demands with a balanced growth of business,
residential, industrial, and commercial development, utilizing the
financial vehicles available through the Federal Home Loan Bank
of Boston."
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