Nuestra Comunidad Development Corporation of Boston has developed the “Senior Abandonment-Prevention Program,” to provide loans and grants for senior citizens to rehabilitate rental units within their primary residences.

Incorporated in 1981, Nuestra Comunidad Development Corporation was founded by residents of the Dudley neighborhood of the Roxbury-Dorchester sections of Boston. The residents aimed to take control of the land, build new housing, and combine their energies for a better future for the community. Nuestra’s board is representative of the neighborhood it serves, in its ethnic and cultural diversity, and is composed of residents, local merchants, community advocates, and representatives of government, nonprofit and social-service sectors.
 
Nuestra is committed to building the wealth and enhancing the physical, economic and social well-being of Roxbury through a community-driven process that promotes self-sufficiency and neighborhood revitalization.
 
The Senior Abandonment-Prevention program was created after recognizing that many apartments in Nuestra’s target area were unoccupied or underutilized. In 1999, Nuestra began working with the city of Boston and local senior citizen’s groups to address this issue. The program began in September 2001.

Program Purpose.  Most owners are still residing in the buildings, but not renting available apartments for a variety of reasons. Many units are simply not in good condition. Many owners have had problems with tenants, and have no idea how to resolve them.
 
The goal of the Senior Abandonment-Prevention program is to get the unused apartments back into service. This, in turn, would raise the seniors’ income and provide much-needed affordable housing opportunities in the city.

Start-up Funds.  In order to launch the program, Nuestra CDC first needed to raise money for a loan and grant pool. The city allocated funds, as did the Federal Home Loan Bank (FHLB) and several local lenders.

Partners.  Many partners assist with this program, though Nuestra CDC conducts most of the direct work of providing counseling, managing the property rehabilitation, and packaging the loans and grants. Since housing usually is only part of the problem for these homeowners, local senior-service programs also are enlisted as partners — to help identify other needs the homeowners may have and link them to the appropriate services (such as Meals on Wheels, medical care, etc.).
 
In addition to funding, the city also contributes construction managers to provide project oversight. The Inspection Service Department (ISD) helps Nuestra CDC by forbearing — rather than condemning — properties that are in the process of being assisted through the program.

Program Requirements.  The program is available to low- and moderate-income owners in the southern neighborhoods of Boston. Participating homeowners must agree to rent the unit to low- and moderate-income households.

Loan and Grant Pools.  Three pools of money are available for customers in the Senior Abandonment-Prevention program. They are low-interest loans, at 30 years, from Nuestra CDC; no-interest loans from the city, which are due and payable on sale or transfer of the property; and grants from the FHLB.
 
To make the program work for each customer, Nuestra CDC typically provides a combination of funding from all three sources. Revenue from the loan payments goes back into the loan pool to help sustain the program.

Costs.  The main cost is the initial funding for the grant and loan pools, though there also are staffing costs. Operating this program is labor-intensive, since most customers need extra support. But Nuestra CDC is able to utilize its current lending and construction staff.

Marketing.  Outreach activities include hanging posters at locations associated with seniors, word of mouth, and announcements at community-organizing activities. The program also receives many referrals from city sources.

• Nuestra CDC has had 100 program applicants, even with no official marketing campaign. As of March 2002, two houses have been completed, one is in progress, and 20 additional projects are set to start.
   
• Nuestra CDC was very successful in raising money, and started with a $1.5-million loan pool.
   
• Monthly income for participating seniors is increasing. The monthly loan payment for the borrower typically is about $250, and the rent they charge typically is about $700, which leaves the remaining $450 as income for the senior.
   
• Over time, this program will provide substantial housing opportunities in a city where the rental housing market is extra tight; some agencies have a five-year waiting list.

• The Senior Abandonment-Prevention program is helping a frequently underserved market to remedy its housing issues. At the same time, the program is making available more affordable housing for low- and moderate-income residents. Though the program is costly, it is definitely worthwhile.
   
• Early on, Nuestra CDC realized that many seniors would need help with rental management and decided to manage the properties itself, when requested. Nuestra CDC expects that this activity will increase its fundraising needs by $50,000 a year for the next four years. Organizations can also arrange for management by a management company for seniors who need this service. The homeowner would have to pay the management company, but then would not have to be involved personally in typical landlord activities.
   
• There needs to be a designated person within the organization to work with these customers. Seniors often have complicated issues and are typically reluctant to talk about what is happening. Developing trust can be difficult, and more time often is needed to explain program requirements and procedures. This is another reason to partner with senior-service agencies, because most seniors already trust these organizations.
   
• Strong and committed funding partners are absolutely vital in starting up such a program. Nuestra CDC estimates the Senior Abandonment-Prevention program will need outside funding for at least three years before it is self-sufficient. Direct-support partners are equally important since these homeowners typically have a variety of issues that need to be addressed. Be creative when identifying potential partners; even the mail carriers are an important resource for Nuestra CDC: they know what is going on in the neighborhood and can tell Nuestra of homeowners in need.
   
• Coordinating and managing different sources of funding (each with its own set of regulations) can be complex. The city has specific standards and requirements, and other programs or city offices may need to get involved, depending on the condition of the property. It can be a challenge to coordinate all the pieces, though each is necessary. Work closely with all partners and keep the lines of communication open.
   
• The paperwork can be complicated. Unexpected situations arise that can be difficult to straighten out. Staff may need to help customers get liens released or deal with predatory-lending situations. Be prepared to get heavily involved in the customer’s life, and develop resource contacts that can help the customer overcome obstacles.

Agency interview with: Evelyn Friedman