Leaders from across the Federal Reserve System visited Chelsea, Massachusetts, on Monday to learn about local economic conditions and hear about the lasting impacts of the Federal Reserve Bank of Boston’s Working Cities Challenge. The Fed contingent, including Reserve Bank presidents and first vice presidents – among them Boston Fed President Susan M. Collins and First Vice President Karen Pennell – met with Chelsea residents and community leaders. They also toured the downtown of this majority Hispanic/Latino city of about 38,000, located a few miles from Boston’s financial district.
During a panel discussion about Chelsea’s economic progress, longtime resident José Agustin Iraheta Zaldaña said Chelsea is a place where local groups collaborate for support but has faced poverty, high crime rates, and substance use issues. Zaldaña, co-director of community building for the nonprofit The Neighborhood Developers, which hosted the visitors, highlighted these challenges.
In 2014, Chelsea received a three-year grant of $250,000 through the Boston Fed’s Working Cities Challenge. This initiative focuses on promoting economic development in smaller post-industrial cities. Zaldaña mentioned that community members aimed to reduce crime by 30% over the next decade. “By 2017, we met our goal. … We can’t credit everything to Chelsea Thrives (the Working Cities Challenge team), but we can definitely say it contributed,” he said. “We look at the bad but also the good – and how we can improve our communities in a systematic way where all our partners can work together.”
Fed leaders learned about “The Hub,” a focal point of Chelsea Thrives’ crime reduction efforts during a panel discussion moderated by Boston Fed Community Affairs Officer Prabal Chakrabarti. This network involves social services, police, and community agencies aiming to support at-risk residents to prevent crime and emergencies.
Mark Dohan from NewVue Communities spoke about Fitchburg's experience with Working Cities since 2014. He noted efforts to revitalize North of Main neighborhood by making it attractive as a “gateway to arts and culture.” Today, parts of historic downtown have been rebuilt with ongoing construction projects like a new library and public art displays contributing to new resident-owned small businesses.
The visit began with a tour of 25 Sixth Street where The Neighborhood Developers are constructing 62 affordable housing units expected to be completed later this year.
A regional housing crisis was discussed in another panel moderated by Tamar Kotelchuck from Regional & Community Outreach at the Boston Fed. Rafael Mares from The Neighborhood Developers emphasized their work on keeping rents affordable through acquiring properties before they hit market rates.
Chrystal Kornegay from MassHousing remarked that New England's housing crisis mirrors national trends where rent burdens affect more income brackets: “We’re having to think about a housing system that isn’t just affordable for our lowest-income folks but across the spectrum,” she said.
Rachel Heller from Citizens Housing and Planning Association pointed out changing public attitudes towards affordable housing as more people are impacted by the crisis: “We’re changing the conversation at the local level,” she said.
---
