Municipalities & Public Entities
To help cities and towns in Massachusetts meet their development needs, MassDevelopment offers financing programs as well as real estate technical assistance services. We provide financing options for projects from predevelopment through permanent financing.
The Brownfields Redevelopment Fund provides financing up to $100,000 for qualified parties to undertake environmental site assessment of brownfields properties located in Economically Distressed Areas (EDAs) of Massachusetts 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 associated with real estate projects. Government facility projects are ineligible, and governmental entities must be authorized to enter into a loan agreement with MassDevelopment.
Real Estate Financing
Clean Renewable Energy Bonds (CREBS)
MassDevelopment issues CREBS to state and local governmental entities to purchase or construct clean renewable energy generation facilities such as solar, wind, geothermal, biomass, or small irrigation power and hydropower. CREBS are tax-credit bonds – the federal government provides a tax credit to the bondholder in lieu of the issuer paying interest to the bondholder, thereby offering the equivalent of interest-free financing.
For qualified real estate and equipment projects that are particularly challenging or not traditionally financed by General Obligation Bonds, MassDevelopment can issue tax-exempt bonds on behalf of a municipality or public entity. Interest on the bonds is exempt from federal taxes – and for certain bondholders also from state taxes – resulting in lower borrowing costs.
MassDevelopment issues tax-exempt bonds to finance public infrastructure improvements needed for development projects to progress. Infrastructure includes roadways, treatment facilities, transportation facilities, streetscape, sidewalks, parks, recreational facilities, parking garages, bridges, tunnels, and wharves.
Infrastructure programs that use MassDevelopment tax-exempt financings are:
- Infrastructure Investment Incentive Act (I-cubed or I3)
- District Improvement Financing (DIF)
- Special Assessments
Real estate loans and bank loan participations, up to $5,000,000, can be used for facility acquisition, renovation, construction, expansion, and permanent financing.
The Massachusetts Cultural Facilities Fund (CFF) provides capital grants to finance the acquisition, design, renovation, expansion, or construction of cultural facilities in Massachusetts and feasibility and technical assistance grants to finance studies related to capital projects undertaken by cultural organizations. The Cultural Facilities Fund is jointly administered by MassDevelopment and the Massachusetts Cultural Council.
Real Estate Development Services
The 43D Expedited Permitting Program offers communities a tool for economic development. 43D provides an efficient process for municipal permitting, guarantees local permitting decisions on priority development sites within 180 days, and increases visibility of your community and development site(s).