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MassHousing program uses debt and equity to unblock mixed-income homes
The Massachusetts quasi-public agency has funded six mixed-income projects totaling 605 units and received expressions of interest from dozens more under the BILD program.
Housing shortage conditions and high borrowing and construction costs have made some mixed-income projects hard to finance, prompting Massachusetts to expand a new approach via MassHousing’s Bringing Innovation to Lending and Development, or BILD, program, according to a report highlighted by Bisnow.
The Urban Institute said BILD uses public money as both debt and equity to fill gaps in capital stacks, aiming to catalyze more mixed-income housing production while allowing states to add both affordable and market-rate units, the outlet reported.
MassHousing, a quasi-public agency, received $50 million from the state to support BILD as part of the Healey-Driscoll administration’s Affordable Homes Act. The administration has set a goal of building an additional 222,000 housing units by 2035 to address the shortage, the report said.
Bisnow said the program has two components, the FORGE loan and the Momentum Fund. FORGE includes a senior mortgage originated by Berkadia and backed by Freddie Mac, plus a subordinate MassHousing loan that accounts for 10% of the total debt, and MassHousing has already funded six projects totaling 605 units while drawing expressions of interest from dozens of other deals.