SUN Initiative Note Offering II

United States of America

Last updated 13 May 2020, by Impactyield.

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This is the second debt offering from BCC based on the Stabilizing Urban Neighborhoods (SUN) Initiative strategy launched in 2009. For information on the first offering, select SUN Initiative Note Offering I from the list of additional fund/product profiles on ImpactBase at right below.

Concerned about the disproportionate impact of foreclosures on low-income communities BCC launched the SUN Initiative, a foreclosure relief program that stops the displacement of families and the neighborhood-destabilizing effects of vacancy and abandonment by acquiring foreclosed properties before evictions occur. SUN then resells those properties at current market values to their current occupants with fixed rate mortgages they can afford.

Federal Reserve Chairman Ben Bernanke has highlighted the SUN Initiative as an “innovative strategy” and a model for how “local communities are meeting the challenges of tough times in troubled communities.” Since late 2009, BCC has provided over $48 million in financing to help over 300 Massachusetts residents remain in their homes, reducing average mortgage principal and monthly housing payments by more than 40%.

Now SUN is seeking to sell the revenue stream from the performing mortgage notes to recapitalize the initiative, to support additional lending, and to pave the way for expansion of the model nationwide.

Asset class

Fund style

Not listed

Financial description

Boston Community Capital is proposing a $25 million loan with a ten-year term and a 5% interest-only coupon backed by the revenue stream from a $25 million pool of mortgages to SUN Initiative borrowers. The SUN Initiative purchases foreclosed properties at current market values before evictions have occurred and resells those properties to the current homeowners with 30-year, fixed rate mortgages. Through July 2012, SUN has helped over 250 Massachusetts households remain in their homes, reducing average principal balance and monthly mortgage payments by over 40%.
While BCC would need the right to partially pay down the outstanding principal as mortgages are refinanced, BCC would also be prepared to use best efforts to replace those refinanced mortgages with new mortgages so that the payment stream remains as constant as possible. BCC has modeled losses in the pool at a rate of 5%, but it is also prepared to stand behind that assumption by assuming the first 20% of losses in the pool.
BCC has prepared a package for potential investors including detailed loan-level information on the mortgage loans contained in the $25 million pool, BCC's financial model together with its related assumptions, and a proposed structure for the transaction.

11 years

of track record


the year funded

75,000,000 USD


Asset manager

BlueHub Capital


Headquarters location:

Other funds managed by this asset manager: SUN Initiative Note Offering I

SDG goals

SDG targets

Increase aid for trade support

Increase access to financial services and markets

Key performance indicators

Fund overview

Asset manager: BlueHub Capital

Product track record: Fund has 11 years of track record

Target IRR: 5%

Committed Capital: 0 USD (US Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:


Inception year: 2012

Vintage year: n.a.

Target region: , , ,

Target close date: 01/12/2012

Product term: 10 year maturity + coupon

Assets under management: 75,000,000 USD (US Dollar)

Investment size: Min: 50,000; Max: 500,000; Avg: 230,000

Co-investment policy:

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 60

Fund investments to date exited or repaid: 0

Management fee: n.a.

Carried interest: n.a.

Hurdle rate: n.a.

GIIN Investors' Council Investment: Yes

Limited Partners / Investors: n.a.

Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors




Phone number: 0.00

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Jessica Brooks

Senior Vice President, Development and Communications

Impact Performance


Impact thesis

Since launching the SUN Initiative in late 2009, BCC has financed over $48 million in mortgages to keep over 300 families in their homes, and it is on track to lend a total of $30 million in 2012. Currently, SUN is focused on homeowners in Massachusetts, but it is in discussions with groups interested in bringing the model to cities around the country.
SUN works with clients to understand their finances and what they can afford to pay for a mortgage. After working with their banks to negotiate a purchase of the foreclosed property for its current distressed market value, on average, the clients' monthly housing payments reduce by more than 40%.
By helping homeowners remain in their homes, SUN not only prevents the displacement of families and helps children remain in a stable school environment, but reduces vacancies that destabilize neighborhoods.
To date borrowers are 60% African American, 29% Caucasian, 23% Hispanic/ Latino, and <2% Asian/ American Indian and the typical professions of our borrowers are teachers, nurses aides, bus drivers, child care providers, and assembly workers.

Impact Management


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