Program Description

The Housing Stabilization Fund (HSF) is a state funded bond program that assists in the production and preservation of affordable housing for low and moderate-income families and individuals.

Eligible Applicants

For profit developers, non-profit developers, local housing authorities and municipalities in cooperation with for- profit or non-profit developers are eligible to apply for HSF funds.

Eligible Activities and Affordability Requirements

HSF monies can be used for the acquisition and/or rehabilitation of existing structures for rental use, including distressed or failed properties, or for the new construction of rental projects. Projects seeking HSF funds must have a minimum of 5 HSF-assisted units. All units receiving HSF assistance must be occupied by households with incomes no greater than 80% of the area median income during the first 40 years. During years 41 through 50, HSF assisted units maybe occupied by households with incomes no greater than 100% of area median income. Rents in HSF projects must conform to the high HOME rent schedule, U. S. Department of HUD Section 8 rental rates or other DHCD program rental rates. (Please see the additional program information below for a list of maximum rents and household incomes for your community.)

Funding Limits

DHCD will award the lesser of $1,000,000 per project and up to $50,000 per HSF-assisted unit in HOME entitlement/consortium communities. In non-entitlement or non-consortium communities, the maximum award is up to $65,000 per HSF-assisted unit, up to a per project maximum of $1,000,000. (Please see the additional program information below for a list of entitlement and consortium communities.)

Projects located in HOME entitlement or consortium communities must include a matching commitment of local funds, or the application will not be scored. In general, preference will be given to applications with full match commitments.

Loan Terms

In general, HSF monies are structured as a 50-year deferred payment loan at 0% interest. DHCD reserves the right to structure the loan with an interest rate above 0% to any HSF loan. In addition, projects receiving allocations of Low Income Housing Tax Credits in combination with HSF may be structured with an interest rate set at the Applicable Federal Rate (or higher) as required by the Tax Credits program. All HSF loans are non-recourse and secured by a mortgage on the property.

Selection Criteria

  • strength of overall concept
  • strength of development team
  • demonstrated need for project in the target neighborhood
  • suitable site and design
  • appropriate scope of rehabilitation or construction
  • appropriate total development cost for properties included in proposal
    financial viability of the project
  • degree of local support, including local funding commitments
  • evidence of readiness to proceed
  • evidence of satisfactory progress on projects previously funded with DHCD resources
  • certification in accordance with Executive Order 418
  • incorporation of sustainable development


How to Apply

DHCD makes HSF funding available through a Notice of Funding Availability (NOFA), twice yearly. Applicants must complete and submit the One Stop Housing Application.

One Stop Application

Current Notice of Funding Availability


Additional Program Information

HOME/HSF Program Application Guidelines pdf format of home-hsf_prog_guid.pdf
  HSF Rental Application Guidelines pdf format of hsf-rent_guid.pdf
  HSF Rental Terms and Conditions pdf format of hsfrent.pdf
  DHCD Design Guidelines pdf format of crrguide.pdf
MA 2014 HOME Program Rents pdf format of hudrent.pdf
MA 2014 HOME Income Limits pdf format of hudincome.pdf
Rental Completion Report doc format of rentalcompletionreport.doc
  HOME Entitlement and Consortium Communities pdf format of homeentitlements.pdf
  Housing Quality Standards (HQS) pdf format of housingqualitystandards.pdf
State Lead Paint Rules
Mass Historic Project Notification Form pdf format of masshistoricproject.pdf


 

Training

2013 Occupancy Training pdf format of 2013occupancycomplianceworkshop.pdf

 

Contact

For additional information please call the HOME/HSF staff at (617) 573-1300.