A new $100 million MassHousing fund aims to create workforce housing for households earning 61% to 120% of the area median income (AMI) in Massachusetts.
“Making more affordable housing options available to working Massachusetts families is essential to economic growth and development in communities throughout the commonwealth,” said Gov. Charlie Baker. “These working middle-income families are the foundation of our economy and talented workforce, and the creation of this $100 million fund by MassHousing will advance opportunities for them to thrive and prosper.”
The workforce housing fund will benefit households that have been hard to reach with other housing programs like the low-income housing tax credit, which serves residents up to 60% of the AMI. The fund’s targeted households have incomes too high for subsidized housing but are priced out of affordable market rents as housing costs in Massachusetts continue to rise.
Officials announced the new initiative in Lynn near the future site of Gateway Residences, a 71-unit, mixed-income development receiving financing for 10 workforce housing units under the new initiative for moderate-income residents, and additional funding from the Department of Housing and Community Development for low-income units.
“MassHousing recognizes that many middle-income households are struggling with housing costs and the agency felt it was important to create this fund for workforce housing," said Timothy C. Sullivan, MassHousing executive director. “We are committed to working with Gov. Baker to increase affordable housing opportunities for low-, moderate-, and middle-income residents of the commonwealth.’’
MassHousing’s $100 million Investment for workforce housing:
- Targets individuals and families with incomes of 61% to 120% of the AMI;
- Provides up to $100,000 of subsidy per workforce housing unit to create 1,000 new units of workforce housing statewide;
- Leverages strategic opportunities to use state-owned land;
- Consists of newly constructed units or refinancing of a housing community where new units of workforce housing will be created;
- Remains consistent with development financing in MassHousing’s enabling statute to ensure that in addition to the workforce housing tier, at least 20% of the units in a financed development will be affordable to households at or below 80% of the AMI; and
- Ensures workforce housing units will be deed restricted as affordable to households with incomes between 61% and 120% of the AMI for an extended period of time, generally 30 years or longer.