NORTHAMPTON — Edwards Church in Northampton has announced a $500,000 investment in Springfield nonprofit group Way Finders, as part of an effort to increase the availability of affordable housing projects in the region.
Michael McSherry, a senior minister at Edwards Church, emphasized that the $500,000 was an investment, not a donation or a gift. The money is derived from the church moving existing investments it had in other market-based funds and reinvesting it instead into Way Finders.
“We were looking for a way our investments could be more in line with our values,” McSherry said. “What can we do with it that has a more desirable outcome?”
Though the church still is using the money as any investor would, with hopes of earning money through annual interest with the possibility of being repaid in six years’ time, McSherry noted that the Way Finders investment would earn a lower rate of return than a regular market fund investment. Though he declined to give the actual difference, McSherry said the church would stand to see only half the amount of growth through the new investment, comparing it to buying corporate bonds rather than regular stocks.
Edwards Church has maintained investment accounts as a sort of “rainy-day” fund for the past several decades. The recent $500,000 investment has its origins in a survey of congregants done in 2019 to gauge their preference on what causes the church could better support in the community. The congregation indicated that supporting affordable housing was an area of strong interest.
Though the new investment is not the entirety of the church’s existing portfolio, McSherry said it represented a “significant portion” of the church’s funds.
“There’s lots of causes and I wish we could give to all of them,” McSherry said. “Nothing gets better until there’s more [housing] inventory.”
The church’s investment committee subsequently looked for an affordable housing partner to invest in. They eventually settled on Way Finders, after realizing that it had its own fund that was open to outside investors.
The $500,000 goes into Way Finders’ Development Capital Fund, used on spending for pre-development plans such as hiring architects to draw up designs and lawyers to go over land-use arrangements.
“Our pre-development fund is vital because it covers the large expenses tied to all the work needed before we put a shovel in the dirt,” said Way Finders CEO Keith Fairey in a statement. “This includes architect fees, site preparation, permitting and due diligence.”
Way Finders currently has seven affordable housing development projects underway in communities across the Pioneer Valley and western Massachusetts, located in Amherst, South Hadley, Ludlow, Springfield and Agawam. In Northampton the organization manages several affordable housing properties, such as Live 155 and the Lumber Yard, both located on Pleasant Street.
In addition to the investment, Edwards Church also has previously provided grants to Manna Soup Kitchen, the Northampton Survival Center, and various interfaith charitable organizations. It also hosts an annual Thanksgiving dinner organized by Manna volunteers, often serving those struggling with homelessness or food insecurity.
“I wish we could do more,” McSherry said. “If any other affordable housing groups are looking for partners, give us a call.”
Alexander MacDougall can be reached at amacdougall@gazettenet.com.
