Here's how Silicon Valley Bank collapse threatened Brockton housing and what's being done

Christopher Butler, The Enterprise
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BROCKTON – Following the collapse of Silicon Valley Bank in California, over 700 units of affordable housing currently under construction across Massachusetts, including some in Brockton, were put at risk of falling through the cracks.

But officials Thursday assured Brockton residents that none of the projects would be halted.

"Many people would ask what the heck does that have to do with Massachusetts," said U.S. Rep. Stephen Lynch, a Boston Democrat whose district includes Brockton, Easton, Stoughton and East and West Bridgewater.

According to Lynch, Silicon Valley Bank purchased Boston Private Bank & Trust and committed $11.2 billion to the "Community Beliefs Plan," in which the bank would invest in affordable housing developments across the state. Currently, 18 housing development projects, totaling more than 700 homes, are funded roughly 70% to 80% by Silicon Valley Bank.

U.S. Rep. Stephen F. Lynch speaks at Brockton City Hall on Thursday, May 4, 2023, about the efforts to keep affordable housing projects in Brockton intact after the collapse of Silicon Valley Bank.
U.S. Rep. Stephen F. Lynch speaks at Brockton City Hall on Thursday, May 4, 2023, about the efforts to keep affordable housing projects in Brockton intact after the collapse of Silicon Valley Bank.

Lynch – along with Brockton Mayor Robert Sullivan and Martin Gruenberg, chair of the Federal Deposit Insurance Corporation (FDIC) – gathered in Brockton City Hall on Thursday to discuss how the Silicon Valley Bank failure will impact Brockton's low-income residents.

When the bank first closed, its "high net worth" customers' deposits were secured, but "low-income tenants were not protected," Lynch said.

He and local affordable housing officials met with Gruenberg and other members of the FDIC – which oversees the implementation of the Community Reinvestment Act – over the last several weeks.

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Brockton Mayor Robert Sullivan speaks to the audience assembled at City Hall on Thursday, May 4, 2023, to discuss the impact of the Silicon Valley Bank collapse and to encourage First Citizen's Bank to honor SVB's commitments to invest in affordable housing. To Sullivan's left is U.S. Rep. Stephen F. Lynch, who has been working with the mayor on this matter.

Members of the FDIC guaranteed that the 18 housing projects in Massachusetts would move forward, now funded by First Citizens Bank which took over Silicon Valley Bank, said Eric Shapin, the director of public policy for the Citizens Housing and Planning Association.

"Don't forget about affordable housing," Shapin said.

Downtown Brockton building is a Silicon Valley Bank project

In downtown Brockton, at Montello and Center streets, an old 8-story building is currently being renovated into a mixed-income apartment complex planned to be completed this summer. Eleven of the 55 housing units will be reserved for low-income tenants who make no more than 80% of the area median income.

The 68,000 square foot development is one of the 18 projects in which Silicon Valley Bank was involved. Shapin said 150,000 Massachusetts residents are on the waitlist for affordable housing.

The Anglim, an 8-story building at 93 Center St. in downtown Brockton, is under construction and is planned to be completed by summer 2023. Of the future 55 apartments, 11 units will be reserved for low-income tenants.
The Anglim, an 8-story building at 93 Center St. in downtown Brockton, is under construction and is planned to be completed by summer 2023. Of the future 55 apartments, 11 units will be reserved for low-income tenants.

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Eric Shupin, director of public policy for Citizens Housing and Planning Solutions, speaks to the audience at Brockton City Hall on Thursday, May 4, 2023, concerning affordable housing in the wake of the Silicon Valley Bank collapse. To the right is U.S. Rep. Stephen F. Lynch.
Eric Shupin, director of public policy for Citizens Housing and Planning Solutions, speaks to the audience at Brockton City Hall on Thursday, May 4, 2023, concerning affordable housing in the wake of the Silicon Valley Bank collapse. To the right is U.S. Rep. Stephen F. Lynch.

FDIC says projects will move forward despite Silicon Valley Bank collapse

At Thursday's press conference, Lynch said the FDIC "reassured (us) that those commitments will be continued by the subsequent bank" until the projects are fulfilled.

Lynch praised Brockton's approach to affordable housing on Thursday, as well as the resources the city provides low-income tenants. He and Sullivan toured the Center Street development construction site with Gruenberg to provide FDIC with "a good snapshot of what this means going forward," Lynch said.

This article originally appeared on The Enterprise: Mass. affordable housing safe despite Silicon Valley Bank collapse