Commonwealth of Massachusetts
Citizens' Guide to State Services

Published by
William Francis Galvin
Secretary of the Commonwealth
Citizen Information Service

Housing/Community Development: Quasi-Public Affiliations

J16 Massachusetts Growth Capital Corporation

J17 Community Economic Development Assistance Corporation

J18 Massachusetts Housing Finance Agency

J19 Massachusetts Housing Partnership

J20 Massachusetts Development Finance Agency

J16 Massachusetts Growth Capital Corporation (MGCC)
529 Main Street, Suite 1M10
Charlestown, MA 02129
Tel: 617-523-6262
Fax: 617-523-7676

In 2010 the former Massachusetts Community Development Finance Corporation (CDFC) was merged along with Economic Stabilization Trust to the create the Massachusetts Growth Capital Corporation (MGCC), a quasi-public economic development agency, provides debt and equity financing for small business and real estate projects in targeted low-income and moderate-income communities throughout the Commonwealth. The Mission of the Massachusetts Growth Capital Corporation is to create and preserve jobs at small businesses, women and minority owned businesses, and to promote economic development in underserved, gateway municipalities and low and moderate income communities.

J17 Community Economic Development Assistance Corporation (CEDAC)
One Center Plaza, Suite 350
Boston, MA 02108
Tel: 617-727-5944
Fax: 617-727-5990

CEDAC is an independent state agency created by the Legislature in 1978 to increase the amount of affordable housing and foster revitalization of economically distressed areas by providing a range of development assistance programs to nonprofit development corporation throughout the state. Programs include: Technical Assistance Advances which are low-interest loan to cover predevelopment costs, Front Money Loan which provide additional financing for pre-devlopment costs, Site Control Loans which allow nonprofit developers to secure privately-owned sites, Spot Technical Assistance which are expedited small loans allowing staff review rather than CEDAC board review, and the Child Care Capital Investment Fund which provides technical assistance and term loans to metro Boston area child care providers to finances facilities' related capital spending.

J18 Massachusetts Housing Finance Agency (MHFA / MassHousing)
One Beacon Street
Boston, MA 02108-3110
Tel: 617-854-1000
Videophone: 1-866-758-1435
Fax: 617-854-1091

MassHousing is a self-supporting state agency which finances the construction, purchase, and rehabilitation of housing in Massachusetts. Loan programs designed to stimulate the construction of mixed-income rental housing, to assist in the preservation of the Commonwealth's existing housing stock, and to provide home ownership opportunities for low and moderate-income households are financed through the sale of tax-exempt securities. Subsidized apartments are subject to agency regulations governing household income and family size. Call MHFA for a list of developments. Through the Lead Paint Abatement Program, known as "Get the Lead Out", the MHFA will provide reduced rate loans of up to $15,000 to abate lead paint in private residences. Loans are available at zero, five, and 8.5 percent interest rates to applicants who meet certain income and dwelling requirements. The Mortgage Insurance Fund program provides required private mortgage insurance on all mortgages involving down payments of less than 20% of the home purchase price. The Homebuyer Counseling Program educates first-time buyers in the complexities of the home buying process and prepares them for the responsibilities of ownership. The latest program, FreshRate, designed to make home ownership a reality for families who have enough income to make payments but have not been able to set aside enough money for the down payment, is an affordable loan program offering 4% of the loan amount for down payment and closing cost assistance to those who qualify. Various Home Improvement Loans are available, such as: improving sewage disposal systems (including septic systems); enhancing basic living conditions, safety, or energy efficiency; and bringing a home up to standards required by state or local building codes. For all of these programs, homeowners must apply through the local rehabilitation agencies. Call MHFA for a list of these local agencies.

Regional Office:
59 Interstate Drive
West Springfield, MA 01089
Tel: 413-733-0999
TTY: 413-733-2103
Fax: 413-733-2045

J19 Massachusetts Housing Partnership (MHP)
160 Federal Street
Boston, MA 02110
Tel: 617-330-9955
Toll Free: 1-877-MHP-FUND (647-3863)
Fax: 617-330-1919

The Massachusetts Housing Partnership was created in 1985 to increase the availability of affordable housing through a working collaboration among the public, private, and non-profit sectors. MHP effort centers on the following activities: producing affordable housing for those in need; managing local growth through local policies which also provide for affordable housing opportunities; providing specialized housing opportunities for persons with special needs; and reclaiming abandoned and vacant properties. In 1990, the Legislature created the MHP Trust Fund overseen by a seven-member board, thus removing it from under the direct control and jurisdiction of the Department of Housing and Community Development. Partnership Funds One of the most unique aspects of the MHP is its ability to assemble resources, both new and existing. The MHP is a public/private enterprise established in 1985 to develop and preserve affordable housing through a working collaborative with local housing partnerships. Technical Assistance Funds of up to $50,000 are available to municipalities, non-profit and for-profit developers, professional corporations, community groups, tenant organizations, builders, and others with the capacity to generate innovative, new affordable housing ideas. Soft Second Program MHP administers the Soft Second Program. The Soft Second Program is a shallow interest rate subsidy that makes affordable first-time homeownership possible for low and moderate-income residents. The program provides for smaller mortgage payments by making it possible for the homebuyer to take a second mortgage. Consequently, the homebuyers first mortgage becomes smaller where the first mortgage will be for only 75 percent of the total purchase price. The homeowner will only have to make interest payments on the second mortgage for the first ten years, with principal and interest payments beginning in the 11th year. The program will then give the homeowner a subsidy loan that covers 75 percent of the interest payments on the second mortgage for the first five years. After the fifth year, the subsidy will decrease until approximately the ninth year when the homeowner will completely takeover the payments. A joint venture of MHP and the Department of Housing and Community Development, the program is available through participating local banks in more than 120 communities.

Regional Office:
462 Main Street
Amherst, MA 01002
Tel: 413-253-7379
Fax: 413-253-3002

J20 Massachusetts Development Finance Agency (MassDevelopment)
160 Federal Street
Boston, MA 02110
Tel: 617-451-2477
Toll Free: 1-800-445-8030 (within Mass. only)
Fax: 617-451-3429

With the consolidation of the Massachusetts Government Land Bank and the Massachusetts Industrial Finance Agency, MassDevelopment becomes the Commonwealth's primary source of public financing for economic development projects. The agency's programs include the Predevelopment Assistance Funding Program which seeds community development by funding pre-construction analyses associated with early-stage projects. The agency also provides direct loans and loan guarantees for projects with clear community development or job creation/retention potential. It is the Commonwealth's largest issuer of tax-exempt and taxable bonds for manufacturers, environmental businesses, health and elder-care providers as well as for nonprofit and educational institutions. A Tax-exempt Lease/Purchase Financing Program is available for industrial development and other non-profit agencies.
In addition, MassDevelopment administers a variety of targeted loan funds including the Emerging Technology Fund, which is a useful financing tool for economic growth for technology-based communities, and the Export Finance Guarantee Program, which is designed to enhance the overall scope of export activities in the state while helping exporters expand and compete in the global marketplace. Finally, the agency provides concentrated financing and technical assistance to large-scale real estate development projects across the state. There are several regional offices, call or visit their website for the nearest location.

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