Facilities Consolidation Fund (FCF)

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

Eligible Applicants

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

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 be 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.

FCF 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 FCF funds must be certified by DMH or DDS, and all units receiving FCF assistance must be occupied by clients of DMH or DDS.

Funding Limits

DHCD will award no more than 50% of total project development costs per FCF unit, with a recommended limit of $750,000 per project.

Loan Terms

in general FCF Loans are structured as 30-year deferred payment loans at 0% interest with ten-year extensions available at DHCD’s discretion. DHCD may extend the loan period for an additional 10 years if the property continues to be used for DDS or DMH-approved purposes, and DHCD reserves the right to structure any FCF loan with an interest rate above 0%. Loans are subject to deed restrictions and title transfer agreements as provided for in loan documents, including a promissory note, mortgage and use restriction.

Selection Criteria

Projects must be certified by DMH or DDS through DHCD’s pre-application process, and underwritten for feasibility by DHCD's technical assistance partner, the Community Development Economic Assistance Corporation (CEDAC). Factors for consideration will include:

  • 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
  • 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 FCF funding available through a Notice of Funding Availability (NOFA). Applicants must submit an application for funding using the Department’s Mass One Stop+ web-based application.

Mass OneStop+

Winter 2018 NOFA Housing Development Programs

FCF funding is also available on a rolling basis for projects not seeking any other DHCD resources. Applicants for rolling FCF must complete and submit a One Stop Housing Application to

both DHCD and CEDAC. Prior to submitting an application, applicants must contact the appropriate regional DDS or DMH Services housing coordinator and submit a pre-application to receive certification for the proposed project.

One Stop Application

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