PATRICK-MURRAY ADMINISTRATION ANNOUNCES ANOTHER RECORD YEAR FOR MASSHOUSING
Agency's ability to access capital and support for low- and moderate-income homebuyers resulted in more than $838 million in overall lending for affordable housing
This landmark year shattered MassHousing's previous record of $753 million in overall lending set just last year. MassHousing has posted four consecutive record years for home mortgage lending and more than doubled its lending in fiscal 2010 for affordable rental housing.
"An affordable home is the foundation for economic success and recovery for the residents of Massachusetts,'' said Governor Patrick. "I am proud of the leadership role MassHousing has taken in helping thousands of working people find affordable housing, which will further strengthen our economy and our communities across the Commonwealth."
"MassHousing proves day in and day out that low- and moderate-income residents can be successful homeowners by using the Agency's quality, affordable, fixed-rate mortgage products,'' said Lieutenant Governor Timothy Murray. "MassHousing was the only lender in Massachusetts to offer a First-Time Homebuyer Tax Credit Loan and this proved to be the difference for hundreds of families who were able to monetize their federal tax credit when they bought their homes and who are now helping us revitalize our state's economy.''
In addition to its record-breaking year of providing affordable housing for Commonwealth residents, MassHousing also created the First-Time Homebuyer Tax Credit Loan program that allowed first-time homebuyers using a MassHousing first mortgage to borrow up to $8,000 in advance of their federal income tax credit to use for down payment and closing costs. The Agency closed 372 Tax Credit loans involving $2.7 million in Tax Credit loan financing and $69.4 million in first mortgage financing.
Agency-wide, MassHousing provided a total of $838.2 million in loans in fiscal year 2010, an increase of 11% over fiscal year 2009's previous record total of $753.2 million.
Approximately $554.8 million of FY '10 loans went to 3,138 Massachusetts borrowers to buy or refinance a home, which is also a MassHousing record for homeownership lending. Lending to homebuyers was up nearly 11% over fiscal 2009's homeownership total of $506 million.
MassHousing also posted $218 million in lending for affordable rental housing in fiscal 2010, which more than doubled 2009's total of $88.5 million. The Agency's rental lending effort involved the preservation of existing affordable rental housing and the production of new affordable rental housing.
MassHousing Executive Director Thomas R. Gleason attributed the Agency's strong performance over the last several years to the Agency's ability to access lending capital and its commitment to the preservation and production of rental housing and to first-time homebuyers when other lenders overreacted and retreated from the turbulent housing market.
"It was critical that the state's affordable housing bank showed confidence in this housing market and supported owners of rental housing who extended affordability to their low- and moderate-income renters and in our first-time homebuyers,'' said Gleason. "While we worked diligently to make lending capital available for our market, too many other lenders overreacted and tightened their mortgage lending. We remain one of the only lenders still offering low down payment options with responsible underwriting to create safe, predictable home mortgage products. We have proven that low- and moderate-income homebuyers are not just a good risk, they are good for business and the overall health of our local economy.''
MassHousing (The Massachusetts Housing Finance Agency) is an independent, quasi-public agency created in 1966 and charged with providing financing for affordable housing in Massachusetts. The Agency raises capital by selling bonds and lends the proceeds to low- and moderate-income homebuyers and homeowners, and to developers who build or preserve affordable and/or mixed-income rental housing. MassHousing does not use taxpayer dollars to sustain its operations, although it administers some publicly funded programs on behalf of the Commonwealth. Since its inception, MassHousing has provided more than $11billion for affordable housing. For more information, visit the MassHousing website at www.masshousing.com.