Affordable Rental Housing
With its experienced team of professionals and full range of financing options, MassDevelopment can help get housing developments off the ground. Our financing products can pay for predevelopment work, construction, and permanent financing.
The Brownfields Redevelopment Fund provides financing up to $100,000 for qualified partners to undertake environmental site assessment of brownfields properties located in Economically Distressed Areas (EDAs) of the state and loans with flexible terms up to $500,000 to clean-up contaminated sites.
Predevelopment loans are low interest rate loans up to $50,000 with deferred repayment terms to finance predevelopment costs for real estate projects.
Affordable Rental Housing Development Financing
MassDevelopment issues tax-exempt bonds for multi-family rental housing properties that meet affordable income requirements for federal tax-exempt status. Eligible rental housing projects include:
- Skilled Nursing
- Assisted Living
Bond proceeds can finance new construction or rehabilitation of existing housing or acquisition and preservation of “expiring use” projects. Interest on the bonds is exempt from federal taxes – and for certain bondholders is also exempt from state taxes – resulting in lower borrowing costs. Tax-exempt bonds may be sold in the capital markets or directly to your bank or another financial institution. Some capital market bonds may be issued without credit enhancements; most are underwritten by one of several programs:
- Fannie Mae
- Freddie Mac
- Bank letter of credit
- FHA Insurance
- Massachusetts Housing Partnership (MATCH Program)
4% Federal Low Income Housing Tax Credits
Multi-family and senior rental housing projects that qualify for tax-exempt bond financing may also be eligible for an allocation of 4% low income housing tax credits.
40B permitting allows developers to streamline the permitting process for affordable housing development. As a designated agency, MassDevelopment is authorized to issue site eligibility letters.
Rental Housing Development Financing
MassDevelopment makes loans and bank loan participations up to $5,000,000 for facility acquisition, renovation, construction, and permanent financing of rental housing and mixed-use projects.
Mortgage Insurance Guarantees can maximize financing available to your real estate project.