CHHSM Member Helps UCC Congregations Invest in City Housing

In Worcester, Massachusetts, UCC congregations are working together with CHHSM member Worcester Area Mission Society (WAMS) to improve the lives of communi- ty residents by investing capital into Worcester’s distressed neighborhoods.

Through the Community Loan Fund, launched with WAMS’ leadership more than fifteen years ago, congrega- tions can invest a portion of their endowment or reserves in the Fund for a money market rate of return. In turn, the fund uses the capital to provide financing for acquisition of and construction on targeted properties. The fund also provides finance startup costs for inner-city entrepreneurs. UCC congregations and their individual members, as well as the Massachusetts Conference, are longtime leading investors in the Fund and have been joined by many others from the wider churchand secular community.

Known as a tugboat lender, the Community Loan Fund pulls new capital into areas where conventional credit has been shallow. By providing the first dollar into projects, the fund leverages the participation of banks and other lenders to create a significant multiplier effect. Community Loan Fund financing has built more than 300 units of housing, seeded 12 small businesses, provided 16 home improve- ment loans and made more than 200 down payment loans to first-time homebuyers. In 2007, the Loan Fund created two new financial tools: a refinance product to rescue inner city homeowners with good credit who have been vic- timized by predatory lenders, and a mortgage product to help young families and municipal workers stretch their buying power in order to afford entry level homes in their communities.

The fund, which currently has $2.5 million in assets, is professionally managed as part of Worcester Community Housing Resources, Inc., and has been designated by the US Treasury Department as a certified Community Devel- opment Financial Institution. All investors have been re- paid on time.

To learn more about the Community Loan Fund and other Worcester Area Mission Society projects, please visit www.wamsucc.org .