TDI Equity Investment Program
MassDevelopment uses its TDI Equity Investment Program to support properties with potential to spur transformative development in and around a TDI District. Through the program, MassDevelopment invests in near-term projects that will have significant economic impacts within a TDI District; are consistent with Commonwealth and Agency priorities; engage and build capacity in local communities and partners; catalyze market demand and support TDI District goals; and lack other sufficient funding sources to proceed.
Notice of Funding Availability
MassDevelopment is introducing a notice of funding availability under a new, revamped version of the TDI Equity Investment Program to support projects on key properties in TDI Districts that will have significant economic impacts on neighborhood revitalization goals. TDI uses a “toolkit” approach to targeted neighborhood economic development, and this new program will serve as a key tool for assisting real estate developments in active TDI Districts, for the first time providing grants directly to developers and property owners to help make catalytic deals financially feasible. Applicants also have the opportunity to request funding as a loan in lieu of a grant.
Projects must be in or within close proximity to the TDI Districts in the following cities: Chelsea, Chicopee, Fall River, Fitchburg, Lawrence, Springfield, and Worcester. Projects must be located so that their completion will have a significant impact on the neighborhood in and around the TDI District.
The following types of applicants are eligible to apply for the program:
- Public: Local governmental agencies and entities
- Nonprofit: Community Development Corporations or other non-profit real estate developers, educational institutions, community action agencies, nonprofit entrepreneur support organizations
- For-profit entities: private property owners and private developers
To be funded, projects must be actionable in the near term, serve active TDI District partnership priorities, engage and build capacity in local communities and partners, catalyze market demand and support TDI District goals, and demonstrate an existing financial feasibility gap. Funding availability per project is anticipated to be in the range of $50,000-$1,000,000 per project.
Funding can be used for hard costs, soft costs, or acquisition costs as part of the applicant’s overall capital stack. Funds cannot not be used for pre-development costs, operating funds, staff salaries, or furniture, fixtures, or equipment.
The applicant must demonstrate its ability to secure all necessary permits and close on any other necessary financing and commence the project within approximately 12 months of the Agency’s notification that funds are committed to the project. The applicant needs to have a market-realistic development plan for the project that will bring new, active uses into the TDI District, that is financially feasible but for a gap that this program could be used to fill.
Beginning March 26, 2021, we will be accepting applications on a rolling basis. This is a two-step process. First, applicants must complete an initial Concept Project Plan for initial screening. These will be reviewed as they are received and applicants that meet the requirements will be invited to apply to the second part of the process. In this second step, applicants will have 90 days from receiving a notice to proceed to complete the full application and assemble required documents. Step Two Applications will be reviewed at least quarterly, but MassDevelopment reserves the right to review on an as-needed basis to satisfy program requirements. TDI will assess eligibility and project strength on the following high level criteria: public purpose, ability to execute the project, and local impact.
For more information, contact:
Director Transformative Development