East Boston Neighborhood Trust (EBNT)

In October 2022, the newly formed East Boston Neighborhood Trust (EBNT) acquired 36 multi-family buildings in East Boston to preserve 114 units for affordable housing. The EBNT is the first Mixed Income Neighborhood Trust (MINT) in Massachusetts. Typically, MINT models contain a mix of housing options for different income levels. Higher-rent units help subsidize lower-rent units. MINTs raise capital from a variety of sources, but control of their housing is ultimately governed by a trust made up of community representatives.

The East Boston CDC (EBCDC) led on the real estate details, yet relied on City Life Vida Urbana (CLVU) and Trust Neighborhoods to fundraise and create the EBNT legal structure. This deal was the first time EBCDC had worked with a grassroots organization on a real estate transaction, though it did have a prior relationship with CLVU. The EBNT was also supported by private investors who provided over $8 million in support: the Boston Impact Initiative, the Hyams Foundation, the Boston Foundation, the Eastern Bank Foundation, and Kataly Foundation. The Barr Foundation also provided EBCDC with a grant for the acquisition. Finally, the Center for Economic Democracy was a critical convenor for fundraising.

While the City of Boston provided $12 million from its Acquisition Opportunity Program (AOP), public subsidy alone was not enough to support the acquisition, even as a 0.0% interest loan. The Hyams Foundation’s $1 million and Boston Impact Initiative’s $500,000 subordinated loans are examples of private funding. CLVU even invested its own funds. It contributed $250,000 as a common equity investor. Its position, like other common equity investors, is most junior in the capital stack.