Bond Financing

Our bond financing programs offer a cost-effective way to finance real estate and equipment in Massachusetts. Lower rates and flexible terms keep you competitive while providing a smart solution for the refinancing of debt.


Consolidated Bond Sale Calendar

Tax-Exempt Bonds

Exempt from federal taxes and in certain cases Massachusetts state taxes, tax-exempt bonds are usually the lowest interest rate option for real estate projects and new equipment purchases. Tax-exempt bonds can be sold in the capital markets or directly to your bank or another financial institution. Tax-exempt equipment financings can be structured as leases issued by MassDevelopment and purchased by financial institutions which engage in lease financing.

Projects eligible for tax-exempt financing include:

  • 501(c)3 nonprofit real estate and equipment
  • Affordable rental housing
  • Assisted living and long-term care facilities
  • Public infrastructure projects
  • Manufacturing facilities and equipment
  • Municipal and governmental projects
  • Solid waste recovery and recycling projects

Bond Financing Brochure





Taxable Bonds

We can issue taxable bonds for a variety of purposes including advance refundings, capital projects that are ineligible for tax-exempt financing, and a taxable “tail” in conjunction with a tax-exempt financing if the borrower wants to finance ineligible costs.

Infrastructure Financing

MassDevelopment offers three unique financing programs designed to support public infrastructure projects. The programs can be used independently, or in combination, and involve the establishment of an identified development/redevelopment district to finance infrastructure that will spur real estate development that may not otherwise occur. We can issue tax-exempt and taxable bonds for these projects.

What can be financed?

  • Roadways and intersections
  • Water and wastewater facilities and related lines
  • Transportation facilities such as train stations, bus depots, etc.
  • Seawalls, docks, wharves, bridges, culverts, and tunnels
  • Streetscape, sidewalks, electric lines, and street lights
  • Parks, playgrounds and recreational facilities
  • Parking garages
  • Brownfield mitigation
  • Site acquisition, demolition and site pad development
  • Soft and financing costs (engineering, architectural, etc.)
  • Infrastructure financed can be located in or be supporting development in the district. It must be publicly owned upon completion. In certain circumstances, ownership can be via an easement or a lease.

Infrastructure Investment Incentive Program (I-Cubed)

  • Public-Private partnership to support approved development projects with major infrastructure needs in the range of $5 million to $50 million.
  • Administered by the Secretary of Administration and Finance and the Commissioner of the Department of Revenue in partnership with MassDevelopment.
  • Once development is complete, debt service is paid by the Commonwealth from new state tax revenue generated from job creation and other economic activity from the project.

District Improvement Financing (DIF)

  • Known as Tax Increment Financing (TIF) in other states.
  • Using new property tax revenues collected from a predefined geographic area to pay infrastructure project costs through a bond or pay-as-you-go.
  • Incremental property taxes from new growth in a district used to create infrastructure investment.
  • Bonds can be issued by the municipality or MassDevelopment on behalf of the district.
  • Review MassDevelopment DIF tools and resources.

Local Infrastructure Development Program (23-L)

  • Special assessment financing for infrastructure improvements.
  • Landowners in benefited district pay bond debt service through special assessments on parcels that stay in place if the property is sold.
  • Shifts burden for infrastructure to the private sector; landowner consent needed.
  • Bonds can be issued by MassDevelopment on behalf of the district.

Infrastructure Financing Brochure


Low-Income Rental Housing

MassDevelopment provides tax-exempt bond financing and 4% low-income housing tax credits (in partnership with the Department of Housing and Community Development) to help fund the new construction and preservation of affordable rental housing projects. Please contact Tony Fracasso for more detail regarding specific rules and regulations which govern project eligibility.


The Short Term Asset Reserve (STAR) Fund is a comprehensively managed, permitted investment fund designed for an optimal return through requisition. Investments include short-term government securities and other high-quality money market instruments to ensure the safety and liquidity of the underlying principle.


AAA S&P Rating

  • MassDevelopment STAR Fund’s Rating is AAAm. Standard & Poor’s fund ratings are based on analysis of credit quality, market price exposure, and management. According to Standard & Poor’s rating criteria, the AAAm rating signifies excellent safety of invested principal and a superior capacity to maintain a $1.00 per share net asset value. However, the rating is neither a “market” rating nor a recommendation to buy, hold or sell the securities.
  • For a full description on rating methodology, visit S&P Global Ratings.



  • This information is for institutional investor use only, not for further distribution to retail investors, and does not represent an offer to sell or a solicitation of an offer to buy or sell any fund or other security. Investors should consider the Fund's investment objectives, risks, charges and expenses before investing in the Fund. This and other information about the Fund is available in the Fund’s current Information Statement, which should be read carefully before investing. A copy of the Fund’s Information Statement may be obtained by calling the Investment Advisor at 1-800-937-2736. While the Fund seeks to maintain a stable net asset value of $1.00 per unit, it is possible to lose money investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Units of the Fund are distributed by PFM Fund Distributors, Inc., member Financial Industry Regulatory Authority (FINRA) ( and Securities Investor Protection Corporation (SIPC) ( PFM Fund Distributors, Inc. is an affiliate of PFM Asset Management LLC.