1. NCDA Annual Conference June 2016
Mill Cities Community Investments
Presentation by James Barnes, Lawrence MA Community Development Director

3. History of Lawrence, Mass.
Founded in 1845 by the Essex Company as a planned industrial city

6. Lawrence Facts 7 square miles
Population 72,043 (2000) to 76,377 (2010), and 77,312 in 2012
76 % Latino
Median Household Income:
$32,581 in 2013 compared to $67,888 for state and $49,452 for Lowell
30% Homeownership Rate

7. More Lawrence Facts Unemployment Rate Twice State Average
Every census tract except one >51% Low/Moderate Income Population
Annual CDBG = $1.7 Mil down to $1.3
Annual HOME = $1 Million down to $.6

10. The Mill Cities Community Investments Story

11. 2001 CDC Director in Lowell has an Idea
Traveled to conferences via NeighborWorks
Learned about CDFI’s
Had some leftover grant money – used for equity stake plus loan, the business was a success and grew
How to duplicate? TA grant from CDFI

12. 2002 Change in leadership and direction at CDC
Executive Director joins local bank
CDFI idea not pursued

13. 2006 CDFI Idea Revisited
Leaders from two Community Development Corporations
Coalition for a Better Acre – Lowell
Lawrence CommunityWorks - Lawrence
Reaction to Foreclosure Crisis
Looking for a tool for helping troubled homeowners refinance healthily
Regional Approach to Meet a Population Threshold – Lowell & Lawrence

14. First Steps Recruited Advisory Board
Wrote Expansion Grant Application to NeighborWorks
Obtained Seed Funding and some small lines of credit

15. 2007 Banker Returns to Take Helm
Returned Director and Lawrence Housing Activist co-write application for CDFI status.
But landscape has changed – housing market showing some cracks
Mission of two CDC’s – housing focused
Response to foreclosure crisis
Emphasis was on housing

16. 2008 Started with $100,000 to invest and 6 month operating budget
Fundraising goal of $250,000
Idea to revolve the first $100,000 until CDFI came through

17. 2011CDFI Funds Approved
$600,000
Home Improvement Loans and Down Payment Assistance

18. 2013 MCCI becomes Mass Housing “Get the Lead Out” Lender
Became Number One Mass Housing Lead Lender in State
56 Lead Loans in Portfolio

19. 2014
Small Underwriting Contract for Lawrence Small Business Loan Program – CDBG
Demonstrated to the Board that Mill Cities could handle Business Loans

20. 2015 - Lawrence Partnership Created
Banks want to lend
Need some level of guarantee
CDBG provides 10% loan guarantee
Bankers ask Mill Cities to do the Underwriting
And finally Mills Cities is doing what founder hoped to do back in 2001

21. Conclusions Visionaries to create something Key player to carry it out
Strong, supportive board to sustain it
Change and growth are slow and incremental