Across Massachusetts, the housing affordability crisis continues to deepen, and the state has set the goal of creating 222,000 new homes by 2035, while preserving its existing affordable housing. The state ranks third in the nation for highest housing costs, with a severe shortage of affordable rental options. Long-time residents are being priced out of the very communities they’ve helped build, eroding the social fabric and identity of our towns.

Community development corporations (CDCs) are uniquely positioned to respond to this crisis. Deeply rooted in the neighborhoods they serve, these nonprofits possess an understanding of local needs and a steadfast commitment to protecting residents. They prioritize preserving community culture and combating the destabilizing impacts of high housing costs—displacement, overcrowding and homelessness.

One strategy CDCs use to combat displacement and stabilize rising rents is purchasing Naturally Occurring Affordable Housing (NOAH), mainly older multifamily buildings, and preserving their affordability. In today’s competitive market, acquisitions of these multifamily properties require rent hikes of 25% or more just to break even—fueling the very displacement CDCs are trying to prevent. To level the playing field, they need access to low-cost, flexible capital that allows them to act quickly in acquiring properties and holding rents below market while securing tax credits for long-term affordability.

That’s where innovation and collaboration come into play.

In 2024, Opportunity Communities (OppCo)—a nonprofit dedicated to strengthening CDCs—launched the OppCo Housing Accelerator Fund (HAF). This revolving loan fund provides fast, affordable predevelopment and acquisition financing, giving CDCs the agility to compete in a high-cost housing market and preserve homes for long-term affordability.

The Neighborhood Developers (TND), a founding OppCo member, exemplifies the impact of this approach. In the past seven years since launching OppCo, TND has produced or preserved 507 affordable homes, expanding its portfolio by 87% to 769 units—with 345 more in the pipeline.

“We see an opportunity to preserve affordable homes by scaling up our ability to purchase existing multifamily buildings,” says TND Executive Director Rafael Mares. “But we need low-cost capital to realize this mission-driven strategy. With this resource, we can compete in the market and preserve homes as affordable once acquired.”

The HAF is a strategic response to a specific gap in the housing ecosystem. By bridging the financing gaps in acquisition and predevelopment, the Fund provides CDCs with the financial agility to compete in a hyper-competitive market, enabling them to act quickly from offer to closing, make necessary repairs, and subsidize rents in the interim. The Fund is a game-changer in Greater Boston, offering a crucial lifeline in preserving and expanding affordable housing options.

Affordable housing preservation

Already, the Fund’s impact is tangible. TND has acquired 91 homes using HAF financing, with 88 more homes identified for purchase in the coming months. These properties are being upgraded into energy-efficient, healthy homes—and on the way to being permanently preserved through deed restrictions.

A recent example is TND’s acquisition of the Park and Pearl properties in Chelsea, Massachusetts. These three historic buildings, home to 30 residential units, were in poor condition with rising rents threatening displacement. With the help of HAF and contributions from the city of Chelsea, public and private banks, a hospital and an impact investor, TND was able to move forward with purchasing the property. Just one week after closing, staff met with tenants to identify priorities for improvement. Repairs are already underway, including lead mitigation and pest control.

TND’s goal is to use the HAF to acquire and permanently preserve about 150-200 homes every five to seven years, modeling a new strategy for transforming NOAH units into deed-restricted assets that remain affordable for generations.

To date, the Housing Accelerator Fund has raised over $5 million of its $20 million goal, thanks to mission-driven investors and lenders. Now, OppCo is calling on philanthropic partners and impact investors to help expand the Fund’s capacity through grants, loans, guarantees and patient equity.

Ultimately, truly addressing Massachusetts’ housing affordability crisis requires us to equip community development nonprofits with the tools they need to lead the charge. The OppCo Housing Accelerator Fund is a smart, scalable solution to the housing crisis and we’re seeking investors to build it. Investing in the Fund is more than a financial contribution—it’s a commitment to keeping families in their homes, safeguarding the identity of our communities and building a more equitable future.

Kathy McGilvray is the CEO of Opportunity Communities. Rafael Mares is the executive director of The Neighborhood Developers.