Boston-Edison Development Incorporated
In 1990, a group of residents founded Boston-Edison Development, Inc. (BEDI), a 501 (c)(3) non-profit housing rehabilitation corporation. BEDI acquires abandoned, tax defaulted and dilapidated houses, rehabilitates them and re-sells them to individuals and families. BEDI has completed eight houses and sold seven; the eighth house is currently for sale. Four of the houses were acquired through Wayne County's Project SAVED or the Revitalife programs; three houses were purchased from the City of Detroit, and one from an individual. BEDI is the only non-profit housing association in the City that receives its primary funding through loans from residents and friends of the District.
Anyone can invest in BEDI. This is how the loan program works. The investor loans BEDI a minimum of $250 and receives a promissory note bearing interest at 3.5% per annum. The note has a due date that is two years from the date the money is loaned. For example, if someone loans BEDI $500 on March 1, 2007, the due date on the note will be March 1, 2009. Interest is compounded annually, which means that on March 1, 2008, in our example, BEDI computes interest on $500 at 3/5%, which comes to $17.50, rounded off to $18. The $18 is added to the principal, for a new principal amount of $518. On March 1, 2009, BEDI computes interest at 3.5% on $518, which comes to $18.11, rounded off to $18.
The investor has a choice of (1) rolling over the note plus interest in the new principal amount of $536 and leaving the investment in BEDI for another two years; (2) taking out only the interest earned, which in our example is $36.00; or (3) increasing the amount of the note and continuing the investment. Current investors routinely roll over their notes so BEDI can continue its work. Interest income earned, whether received or rolled over, is reported to the IRS in the anniversary year of the note.
The officers and directors of BEDI serve without compensation. All profit earned on a rehabilitated house is put into the next house in need of rehabilitation.
BEDI has won numerous awards from historic preservation and community organizations. BEDI's work, together with the efforts of the Association, has assisted in maintaining neighborhood stability, promoting architectural and historic awareness and increasing property values.
See the homes that BEDI has rehabilitated and put back on the market: