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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.
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. Developers are permitted to charge up to the Low Income Housing Tax Credit (LIHTC) rents in HSF units only upon initial rent-up and upon unit turnover. Please note that units funded with HOME and HSF must comply with HOME rent rules. Please see the additional rent information and program guidelines below.
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 list of entitlement and consortium communities on the HOME Investment Partnerships Program page.
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.
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 acceptable to DHCD set at the time of closing. All HSF loans are non-recourse and secured by a mortgage on the property.
DHCD makes HSF 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.
Winter 2018 NOFA
HSF Rental Application Guidelines
HSF Rental Terms and Conditions
DHCD Design Guidelines
Mass Historic Project Notification Form
Rent Policies for DHCD-Assisted Rental Projects
MA Fair Housing Marketing and Resident Selection Plan Guidelines