During the year ended June 30, 2025, MassHousing administered one Flexible Subsidy Loan under HUD’s Operating Assistance for Troubled Multifamily Housing Projects program (Federal Assistance Listing No. 14.164). This loan was issued to a project owner through MassHousing in a previous fiscal year for the purpose of restoring or maintaining the project’s physical and financial soundness, to assist in the management of the project, and to maintain the low to moderate income character of the project. Repayment terms of the loan were contingent upon the cash flow of the project, and the loan bore interest at 1%. On October 30, 2024, the loan, with an outstanding principal and deferred interest amount of $380,000, was restructured and sold out of the Flexible Subsidy Loan Program to MassHousing to facilitate the redevelopment of the site. There were no outstanding loans included on the Schedule at June 30, 2025.
MassHousing receives fee income in consideration for serving as HUD’s contract administrator with respect to the Performance-Based Contract Administration (“PBCA”) project-based Section 8 subsidy program in the Commonwealth under the Housing Assistance Payments Program for Low Income Families (Federal Assistance Listing No. 14.195). Starting in 2011, HUD sought to achieve cost savings in the PBCA program and initiated the first of several processes for re-bidding PBCA administration in multiple states. Each such process has been withdrawn or overturned following legal challenges. On December 5, 2024, HUD executed the eleventh amendment to the Annual Contributions Contract (ACC) relative to the PBCA program. The ACC was extended for a subsequent term of twelve (12) months, beginning on February 1, 2025 and ending on January 31, 2026, with the option by HUD to further extend the contract for up to four additional and successive terms of six (6) calendar months each, subject to the availability of sufficient appropriations.
The U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund (the Capital Magnet Fund or CMF) (Federal Assistance Listing No. 21.011) offers competitively awarded grants to finance affordable housing solutions and community revitalization efforts that benefit low-income people and communities nationwide. These awards can be used to finance affordable housing activities, as well as related economic development activities and community service facilities and to pay direct administrative expenses. As of June 30, 2025, MassHousing has been awarded the following amounts: MassHousing is using the funds to provide gap-filler financing for rental housing ($38.8 million) and to provide down payment assistance loans to income-eligible first-time homebuyers ($2.3 million).
Effective November 17, 2021, the Commonwealth of Massachusetts (the Commonwealth) provided a subaward of $47.0 million to MassHousing, in its capacity as a “Contractor”, to provide administration and project management for the distribution of federal financial assistance received by the Commonwealth through the Homeowner Assistance Fund (HAF) authorized under Section 3206 of the American Rescue Plan Act of 2021, H.R. 1319 (the “ARPA”) and administered by the U.S. Department of Treasury (“Treasury”). The contract was amended on June 22, 2022 and the subaward was reduced by $7.0 million to $40.0 million. The contract was further amended on May 31, 2023 and the subaward was reduced by $13.0 million to $27.0 million. On August 4, 2023, the HAF contract was amended and the subaward was increased by $2.8 million to $29.8 million. The contract was further amended on December 18, 2023 and the subaward was reduced by $8.1 million to $21.7 million. HAF was created to prevent mortgage delinquencies, foreclosures, loss of utilities or home energy services, and displacement of homeowners experiencing financial hardship after January 21, 2020. Funds from HAF may be used for assistance with mortgage payments, homeowner’s insurance, utility payments, and other specified purposes. The law prioritizes funds for homeowners who have experienced the greatest hardships, leveraging local and national income indicators to maximize the impact. Effective November 17, 2021, the Commonwealth also provided a subaward of $3.0 million to MassHousing to establish and manage a statewide marketing, outreach and public information campaign to encourage homeowners experiencing hardships due to the Covid-19 pandemic to take advantage of financial assistance under the Massachusetts HAF Program (the “Statewide HAF Program”). The contract was amended on May 31, 2023 and the subaward was reduced by $1.0 million to $2.0 million. As of June 30, 2024, MassHousing had disbursed all funds available in the HAF Program to eligible recipients. As the program was closed out, MassHousing did a final remittance to the Treasury for interest earnings on the HAF Funds and $2,414 was remitted to the Treasury on May 21, 2025.
MassHousing has performed an evaluation of subsequent events through December 9, 2025, which is the date the Schedule was available to be issued. No material subsequent events have occurred since June 30, 2025 that required recognition or disclosure in the Schedule and accompanying notes.