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Housing Stabilization Fund (HSF)

The Housing Stabilization Fund (HSF) is a state funded program for municipalities, non-profit, or for-profit developers to support affordable rental housing production and rehabilitation.

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.
  • 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.

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 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.

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 acceptable to DHCD set at the time of closing.
  • 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).

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

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