Program Description

FCF provides funding for community-based housing for clients of the Department of Mental Health (DMH) and Department of Developmental Services (DDS).

Eligible Applicants

Non-profit housing development agencies are eligible to apply for FCF funds. Non-profit corporations organized under M.G.L. c. 180 may also be required to be a 501(c)(3) organization under the Internal Revenue Code at the time of loan closing. In order to qualify as a non‑profit corporation, no member, shareholder, officer or employee of such corporation or its board of directors may profit, directly or indirectly, from the FCF assistance or from the Eligible Project. In addition, in order to qualify for purposes of the FCF program, DHCD must determine that a non‑profit corporation is capable of managing all of its responsibilities in connection with the proposed project.

Eligible Activities and Affordability Requirements

All housing must be pre-approved by DMH or DDS, and residents must be clients of DMH or DDS. FCF loans may used for the reasonable and necessary hard and soft costs to develop an eligible project, including costs of acquisition, construction, architecture/engineering, environmental testing and remediation, insurance, taxes, surveys and permits, development consultants, legal services, financing, relocation, title and recording, inspection services, marketing and rent-up, and developer overhead and fees.

Funding Limits

Maximum of 50% of total project development costs, with a recommended limit of $500,000 per project.

Loan Terms

Loans are structured as deferred payment loans with a 30-year term. DHCD may extend the loan period for an additional 10 years if the property continues to be used for DDS or DMH-approved purposes. Loans are subject to deed restrictions and title transfer agreements as provided for in loan documents, including a promissory note, mortgage and land use restriction.

Selection Criteria

Projects must be pre-selected by DMH or DDS, and underwritten for feasibility by DHCD's technical assistance partner, the Community Development Economic Assistance Corporation (CEDAC). The principles of sustainable development should be reflected in the project application.

How to Apply

DHCD makes FCF funding available continuously. Applicants must complete and submit a One Stop Housing Application to both DHCD and CEDAC. Also, applicants should contact the appropriate regional DDS or DMH Services housing coordinator to obtain pre-approval of the proposed project.

One Stop Application

Additional Program Information

FCF Regulations doc format of fcfregs.doc

FCF Forms and Applications


2013 Occupancy Training



For additional information please call the FCF staff at (617) 573-1300.