MV Future Financing
Participation Loans for Affordable Housing
MV FUTURE FINANCING
Furthering the Bank's commitment to be part of the solution for the affordable housing crisis on Martha's Vineyard, MV Future Financing began in 2019 as an initiative with Island Housing Trust to provide low-cost loans to develop housing for low-to-mid income Martha's Vineyard residents. Effectively, MV Future Financing is a "Participation Loan," where individual donors may contribute to a particular project and invest in permanently affordable workforce housing. It is not a 100-percent banking loan - the Bank has a piece of the loan - but other donors also contribute to the purchase. Martha's Vineyard Bank acts as the lead lender, escrow agent, and loan servicer for each participant in the loan.
Financial Innovation with a Heart
from Island Housing Trust
Hanover House
One project was the Hanover House, which addressed Martha's Vineyard Hospital's difficulty with getting and retaining qualified staff. Investors were invited to participate in a $1.8 million below-market-rate 10-year loan (with a 2.5% return) to be used for year-round hospital employee housing. The Hanover House is a former 16-bedroom inn that Island Housing Trust had recently renovated and repurposed in Vineyard Haven.
"The ability for an individual, as a social impact investor, to be able to participate in a larger loan - as in the case of the Hanover House with $1.8 million financing - enables the individuals to have that mechanism available to them to be aggregated with other social impact investors," said James M. Anthony, President & CEO of Martha's Vineyard Bank. "As a group, they are able to meet the $1.8 million need by purchasing a portion of that loan at a level that's in line with their desire, ability, and dedication to the mission."
Martha's Vineyard Bank welcomes such innovative projects and takes pride in finding unique solutions that help solve problems.
MV Fishermen's Preservation Trust
Helping preserve small boat commercial fishing
MARTHA'S VINEYARD FISHERMEN'S PRESERVATION TRUST
The Martha's Vineyard Fishermen's Preservation Trust was started to help preserve and safeguard Martha's Vineyard's small boat commercial fishing industry and their sustainably harvested catch.
This non-profit supports the seafaring way of life that has been established by generations of commercial fishermen which is so important to the Island's culture. High prices of fishing permits and quota restrictions have made commercial fishing difficult. Martha's Vineyard Bank Charitable Foundation purchased a five-ton ice machine for Martha's Vineyard Fisherman's Preservation Trust / Martha's Vineyard Seafood Collaborative in 2021.