Guidance  FY27 MBTA Communities Catalyst Fund Guidelines

Date:	01/23/2026
Organization:	Executive Office of Housing and Livable Communities

Program Information and these Guidelines have been developed for applicants to the MBTA Communities Catalyst Fund (Catalyst Fund). The Executive Office of Housing and Livable Communities (EOHLC) may issue additional guidance, clarification, or revisions which shall be incorporated by reference into these Guidelines. This document is intended to clarify, interpret, and explain existing program requirements, and to provide guidance on EOHLC’s applicant selection process. It is not intended to be exhaustive.

FY27 MBTA Communities Catalyst Fund Overview

The MBTA Communities Catalyst Fund (Catalyst Fund) is a program of the Healey-Driscoll Administration to support its efforts to increase housing production in the Commonwealth and recognize local efforts by MBTA Communities with an approved 3A district compliant with M.G.L. Chapter 40A, Section 3A. Grant funds may be used for a variety of activities related to horizontal infrastructure projects associated with housing development.

Maximum Award

There is no set minimum or maximum amount that an eligible applicant may request. Awards will typically fund projects with grant requests between $250,000 – $1M. Applicants should request funding to support a complete project or complete phase(s) and must provide clear justification for the requested amount. Applicants are encouraged to conduct due diligence to determine accurate estimates of project costs to better understand actual costs and timing of expenditures for the proposed project.

• While a cash match is not required, a match may factor in EOHLC’s applicant selection process. Projects that include at least a 10% local cash match will receive bonus points in application review. To be considered, any match funds must contribute to the direct costs of the infrastructure work. Note that staff time is not considered a cash match.

EOHLC reserves the right to make partial awards for amounts less than the original request and to deny an award to applicants with existing or past violations of EOHLC contractual obligations. Funding availability is subject to the final state budget and capital investment plan.

Project Examples

Examples of eligible projects include but are not limited to:

1. Improvements to physical public infrastructure near a permitted housing project in a compliant 3A district, such as water, sewer, sidewalks, roads, or other multi-modal infrastructure to increase safety, mobility, and accessibility, that will support and/or yield new or additional housing units.
2. Engineering designs for improvements to physical infrastructure, such as water, sewer, sidewalks, and roads, that will create capacity for increased multi-family housing production.

Eligibility & Use of Funds

Eligible Applicants

Municipalities that are MBTA Communities and that have received a determination of compliance letter from EOHLC by the time of application deadline are eligible for consideration of a FY27 Catalyst Fund grant. Eligible municipalities must be the lead applicant and recipient of grant funds.

Other public entities and private firms, such as but not limited to Redevelopment Authorities, Economic Development Industrial Corporations, Water and Sewer Districts, other bodies created by legislative act to serve a municipality, and home builders, are ineligible to apply as the lead applicant. Ineligible lead entities must apply in partnership with an eligible municipality.

Housing Moratoria or Restrictive Bylaws

Applicants with adopted housing moratoria or other restrictive bylaws that do not allow for at least a 5% increase in housing production over a single year are ineligible. Email McKenzie Bell, Senior Community Grants Coordinator, at [e-mail] with questions about this eligibility factor.

Use of Funds

Funding is available through the “Infrastructure” category of the Community One Stop for Growth development continuum. Grants will fund a variety of activities in eligible locations related to horizontal infrastructure projects associated with imminent housing development. Eligible activities include but are not limited to design, construction, repair, and other improvements to infrastructure to advance projects that support housing and/or mixed-use development, such as:

• Sewer lines, septic systems, and other sanitary waste disposal systems, water lines, wells and water treatment systems;
• Utility extensions;
• Streets, roads, curb cuts, and other transit improvements such as, crosswalks, traffic calming measures, pedestrian and bicycle ways; and
• Other related horizontal infrastructure work adjacent to planned or imminent housing improvements.

Grant funds shall not be used to support:

1. Any activities related to assertion of the General Land Area Minimum (GLAM) (1.5% of total land area) safe harbor under 760 CMR 56.03(b)(Chapter 40B);
2. Routine administrative tasks of municipal staff, including, but not limited to, grant application preparation, procurement, or grant administration;
3. Vertical construction or building and foundation activities;
4. Parking and parking garages; or
5. A development with primary municipal use.

Project Location Restrictions

To be eligible for funding, infrastructure projects must be located within or adjacent to a 3A District determined to be compliant by EOHLC.

• For the purposes of this grant, “adjacent" shall mean a parcel or right-of way that immediately abuts an approved 3A District or a parcel or right-of way documented to be associated with an approved 3A District despite not being included in it.

Timeline of Funds

FY27 grants are expected to be awarded in the fall of 2026. As a two-fiscal year grant, FY27 funded projects must be completed by June 30, 2028.

Grant Application

Full Application

The MBTA Communities Catalyst Fund is part of the Community One Stop for Growth (COSG), a single application portal and collaborative review process of community and economic development grant programs that make targeted investments based on a Development Continuum.

The Full Application is organized into the following sections:

• Form 1 – Applicant Information
• Form 2 – Project Information
• Form 3 – Certification of Application Submission Authority

To be considered for funding through the COSG, applicants must include complete responses to all required questions.

Application Review

EOHLC reserves the right to request additional information from the applicant or external sources as may be necessary to complete the application review. EOHLC also reserves the right to recommend partial grant awards, as deemed appropriate. Full Applications will be scored for the responsiveness to the following criteria:

• Project Eligibility: Does the project promote multi-family housing production? Does the project meet the outlined location restrictions within or adjacent to a compliant 3A District?
• Project Readiness:Is the project achievable within the proposed timeline? Evaluation will consider planning to date with factors such as due diligence, stakeholder/public engagement, site readiness, permitting, and design completeness.
• Project Financial Feasibility:Is the project’s budget reasonable? Evaluation will consider factors such as whether the project is fully or partially funded, match funding, schedule of expenditure, and reasonableness of cost estimates.
• Project Outcomes & Impact: How will the project directly produce multi-family housing units? Evaluation will consider factors such as the number of housing units developed, the number of affordable units developed, and the level of affordability of said units.

Evaluation will also consider the following factors:

• Past performance with all prior EOHLC capital grants and capital grant contracts;
• Regional/geographic diversity of awardees;
• Whether an applicant is a first-time EOHLC capital grants recipient;
• Prior EOHLC support or investment;
• Successful implementation of a prior EOHLC capital grant;
• Environmental resiliency; and
• Alignment with Secretariat priorities.

Grant Award

Award of Funds and Grant Contract

Successful applicants must be ready to enter into a contract with EOHLC within 30 days after receiving contract documents. Funding is subject to approval of the EOHLC operating and capital budgets. Grant projects may begin as of the execution of the contract. If selected, an awardee will be required to submit the following forms to complete a contract:

• Commonwealth Standard Contract Form, filled out and e-signed by the Awardee
• Commonwealth Scope and Budget Form (available from EOHLC)
• Completed Contractor Authorized Signature Listing Form (available from EOHLC)
• Completed Budget and Fiscal Exercise Form (available from EOHLC)

Grant Distribution and Invoicing

Granted funds will be disbursed on a cost reimbursement basis. Only work completed during the period of the executed contract will be eligible for reimbursement. Upon receipt of all required deliverables, the grantee will be reimbursed for the balance of outstanding grant funds.