SUN Initiative Note Offering I

BCC created its Stabilizing Urban Neighborhoods (SUN) Initiative to address the disproportionate and destabilizing impact of foreclosures on low-income communities. SUN stops the displacement of families and the neighborhood-destabilizing effects of vacancy and abandonment by acquiring foreclosed properties before evictions occur, and reselling those properties at current market values to their current occupants with fixed rate mortgages they can afford. Since late 2009, SUN has provided over $48 million in financing to help over 300 Massachusetts households remain in their homes, reducing average mortgage principal and monthly mortgage payments by over 40%.

Federal Reserve Chairman Ben Bernanke highlighted SUN as an “innovative strategy” and a model for how “local communities are meeting the challenges of tough times in troubled communities.”

SUN has raised sufficient capital from private investors to provide $50 million in mortgage financing for foreclosed homeowners. Notes pay 4.25% annual interest, with a maturity date of 5/30/2015.

Financial description

Boston Community Capital's SUN Initiative has raised sufficient debt capital to provide $50 million in mortgage finance to foreclosed individuals and families. This debt pays 4.25% interest annually, with a May 30, 2015 maturity. It is secured by a $3.5 million first loss reserve. In addition, BCC is building a 25% portfolio level reserve against future loan losses and market decline.