The Economic Development Fund, a component of the Massachusetts Community Development Block Grant Program (CDBG), provides funding for projects that create and/or retain jobs, improve the local and/or regional tax base, or otherwise enhance the quality of life in the community. EDF gives priority assistance for physical improvements in support of job creation/retention. Historically, EDF has funded a range of economic and community development projects. Currently, program funding is limited to physical Improvements supporting downtown and commercial centers and economic development planning activities.
How it Works:
Eligible cities and towns may apply to the Department of Housing and Community Development (DHCD) for Economic Development Fund grants.
Who is Eligible:
- Municipalities with a population under 50,000; and,
- Municipalities which do not receive CDBG funds directly from the federal Department of Housing and Urban Development
Eligible Projects:
Mixed-Use Development & Adaptive Re-use of Buildings
- Rehabilitation or adaptive re-use of mixed-use buildings to develop Low or moderate income workforce housing.
- Assistance for exterior building improvements that address conditions of blight in an area of blight approved by DHCD.
- Assistance to remove immediate threats to health and safety site or structure that is not located in an area of blight approved by DHCD.
- Removal of architectural barriers. Limited to projects which cannot otherwise be eligible under another provision of HCDA, are unable to meet LMI/Jobs or another national objective, and have an economic development purpose.
Public Improvements
- Physical Improvement Projects Located in Downtown Commercial Centers, With Emphasis on Support of Mixed-Use Development, including:
- Assistance to communities for infrastructure and public facilities.
- Removal of architectural barriers as part of an infrastructure or public facilities.
Planning Projects Supporting Economic Development
- Planning studies which, if implemented, would lead to a project that has an economic development purpose and will meet a national objective.
- Planning and pre-development studies conducted in advance of site or topic specific CDBG-eligible economic development activities.
Section 108 Loan Guarantees
- Loan funds to assist revenue producing development activities undertaken by the municipality (infrastructure, housing) or by a business (economic development, housing).
Application Process:
Applications are accepted on a rolling basis as funding permits. Application Information Forms (AIFs) are submitted by the municipality to provide basic information about the proposal. DHCD staff review the AIF and schedule an initial meeting with the community. Following the initial meeting, the applicant community is notified whether it will be invited to submit an application and if so, whether any additional information is needed.
Loan/Grant Amounts:
- Assistance for a mixed-use development project may be $100,000 to $750,000 per project, plus administration costs.
- Public improvements projects are limited to assistance of $100,000 to $750,000 per project, plus administration costs.
- Planning projects may receive grants of up to $50,000, plus administration costs.
- Section 108 assistance is limited to $500,000 to $2,000,000 per project; and maximum $2,000,000 per year
For More Information:
Please contact DHCD's Division of Community Services at 617-573-1400. Division staff is also available by appointment to provide assistance with applications.