Massachusetts Foreclosed Properties Initiative

Citizens’ Housing and Planning Association (CHAPA), a statewide non-profit affordable housing organization, is launching a new statewide program that helps communities in the wake of the growing foreclosure crisis.  This program will address the greatest challenge these communities face—getting foreclosed properties back on the market and re-occupied.  CHAPA will serve as a foreclosed properties clearinghouse connecting banks that own foreclosed properties with local organizations (individual homebuyers do not qualify), which will purchase the properties and upgrade these homes for low- and moderate-income families. 

Background and Program Goals

In 2008, there were more than 12,000 foreclosure deeds in Massachusetts, more than triple the amount in 2006.  These properties have had a negative impact in municipalities across the Commonwealth from Cape Cod to Western Massachusetts and in many cases have led to the destabilization of certain neighborhoods.

CHAPA has designed this program in coordination with the Patrick-Murray Administration; a broad-based local advisory committee; and the National Community Stabilization Trust, a national non-profit organization specifically created to help local communities acquire foreclosed properties.  The program’s local partners include over 70 housing organizations and 30 municipalities (see attached list).  The first phase of the program includes properties owned by Fannie Mae, Freddie Mac, Citi, Wells Fargo, GMAC, JP Morgan Chase (including Washington Mutual), and Bank of America (including Countrywide).  Additional banks may be included in a second phase of the program.

The goals of the program are to:

• Stabilize neighborhoods by reducing vacant and abandoned units and by providing important property tax revenues to municipalities.
• Ensure that the sale of foreclosed properties is done in a sustainable manner that does not set the stage for a future cycle of foreclosures and property decline.
• Help responsible renters who are living in foreclosed properties avoid eviction and displacement.
• Provide affordable housing opportunities—both homeownership and rental—to low and moderate income residents.

CHAPA’s Role

CHAPA will act as a clearinghouse for statewide information, specifically:

• Pre-qualify and designate local organizations that are eligible to purchase properties.
• Transmit property information to potential purchasers in a timely fashion.
• Work with banks and the National Community Stabilization Trust to facilitate the sale of properties to certified purchasers in an efficient manner.

Program Components

First Look

The participating banks will provide a fist look to eligible purchasers prior to listing the property on the open market. During this time period (which is likely to be an average of 14 days), the seller will provide local organizations with physical access to the property and offer an adjusted sale price.  This process will ensure that capable buyers will return the homes to productive use and in good condition.  In addressing the critical bottleneck to the process, participating banks will assign a senior level contact person with authority to provide up-to-date listings of foreclosed properties, grant property inspections, and negotiate acquisitions.  

Bulk Sale

Participating banks will provide the opportunity to purchase multiple properties in a community as part of a bulk sale, particularly in areas with a higher concentration of foreclosed properties.  This will allow local organizations to renovate properties on a whole block or in larger areas of a neighborhood, thereby having a greater impact on revitalization efforts.  

Program Outcomes

• 2012 Progress Report for the Massachusetts Foreclosed Properties Initiative
• Neighborhood Stabilization in Massachusetts Brochure

Qualified Purchasers and Municipal Partners

Qualified Purchasers

• Advocates
• Affordable Housing Associates of Lynn
• Barnstable Housing Authority
• Bay Cove Human Services
• Beverly Affordable Housing Coalition
• Boston Community Capital
• Bread and Roses Housing
• Brockton Housing Authority
• Career Resources Corporation
• Caritas Communities
• Castle Rock Properties
• Center for Human Development
• Charles Housing Companies
• Chelsea Neighborhood Developers
• Chicopee Neighborhood Development Corporation
• Citizens for Adequate Housing
• Coalition for a Better Acre
• Codman Square Neighborhood Development Corporation
• Combined Resources Company
• Common Ground Development Corporation
• Community Action for Better Housing
• Community Care Services
• Community Counseling of Bristol County
• Dorchester Bay Economic Development Corporation
• East Boston Community Development Corporation
• Emmaus
• Fairfield Real Estate Development Corporation
• Fall River Community Housing Resource Board
• Falmouth Housing Authority
• HAP
• Harborlight Community Partners
• House of Hope Housing
• Housing Assistance Corporation
• Lawrence CommunityWorks
• Leominster Development Corporation
• Lynn Housing Authority and Neighborhood Development (LHAND)
• Lynn Investing in Neighborhood Corporation (LINC)
• Main South Community Development Corporation
• Marlborough Community Development Authority
• Mattapan Community Development Corporation
• Mental Health Association
• Methuen Housing Authority
• Neighborhood Development Associates
• Neighborhood Housing Services of the South Shore
• Neighborhood of Affordable Housing (NOAH)
• North End Housing Initiative
• Nuestra Comunidad Development Corporation
• Oak Hill Community Development Corporation
• Pine Street Inn
• Planning Office for Urban Affairs
• Plymouth Bay Housing Corporation
• Quincy Community Action Programs
• Salem Harbor Community Development Corporation
• Somerville Community Corporation
• Springfield Neighborhood Housing Services
• Second Generation Trust
• Self Help
• Southwest Boston Community Development Corporation
• Star Contracting Company
• The 1810 Realty Group
• The Resources Incorporated for Community and Economic Development (TRI)
• Twin Cities Community Development Corporation
• Union Block Realty Trust
• Urban Edge
• Urban LandWorks
• Wabash Construction
• Windale Developers
• Worcester Common Ground
• Worcester Community Housing Resources
• Worcester East Side Community Development Corporation
• Worcester Housing Authority
• Yarock Memorial Housing

Municipal Partners

• Attleboro
• Barnstable
• Billerica
• Boston
• Brockton
• Chelsea
• Chicopee
• Fall River
• Falmouth
• Fitchburg
• Framingham
• Haverhill
• Holyoke
• Lawrence
• Leominster
• Lowell
• Lynn
• Marlborough
• Marshfield
• Methuen
• Milford
• New Bedford
• Quincy
• Peabody
• Revere
• Salem
• Somerville
• Springfield
• Taunton
• Weymouth
• Worcester