Affordable Housing Trust Fund

The Massachusetts Affordable Housing Trust Fund (AHTF) provides resources to create or preserve affordable housing. MassHousing administers the AHTF on behalf of the Massachusetts Department of Housing and Community Development.

AHTF dollars support housing for households whose incomes are not more than 110% of median income. Funds are available for rental, home ownership and mixed-use projects as well as housing for the disabled and homeless, but may be applied only to the affordable units.

AHTF funds are used primarily to support private housing projects that provide for the acquisition, construction or preservation of affordable housing.

In addition, the AHTF has funds for other purposes:

  • $2.5 million to fund pre-development activities, administered by the Community Economic Development Assistance Corporation
  • Up to $5 million annually to support public housing modernization, administered by DHCD
  • The Department of Mental Health Danvers State Hospital Housing Fund, which assists in the development of permanent housing for DMH clients in the DMH North East Area

Who it's for

Eligible applicants include governmental subdivisions, community development corporations, local housing authorities, community action agencies, community-based or neighborhood-based nonprofit housing organizations, other nonprofit organizations, for-profit entities and private employers.

To be eligible, applicants must be current on all existing mortgage obligations with the Commonwealth or any of its subdivisions. Borrowers receiving AHTF money must be single-purpose entities except for projects sponsored by public housing authorities, in which case the sponsoring authority may be the borrower.

Program Details

AHTF funds may be used flexibly to ensure a project's financial feasibility. A wide range of financial assistance is available from the AHTF for projects that meet the funding criteria.

Types of assistance include

  • Deferred payment loans
  • Low- or no-interest amortizing loans
  • Down payment and closing cost assistance for first-time homebuyers
  • Credit enhancements and mortgage insurance guarantees
  • Matching funds for municipalities that sponsor affordable housing projects
  • Matching funds for employer-based housing

Funding threshold criteria include

  • Consistency with the Commonwealth's Sustainable Development Principles
  • Minimum term of affordability of 30 years
  • Affordability of all AHTF units to households earning no more than 110% of area median income
  • Financial feasibility. Preference shall be given to projects that are most likely to commence development in a timely manner upon approval of funding.

Funding preferences include projects/developments that

  • Produce new affordable housing units
  • Provide new affordability
  • Create units affordable to households with a range of incomes, particularly units for households with incomes below 80% of area median income Include affordable units for families
  • Include affordable units for the disabled and the homeless
  • Propose the longest term of affordability
  • Are sponsored by nonprofit organizations
  • Use private funding sources and non-state funding sources to leverage the least amount of AHTF funds

AHTF will make every effort to be responsive to the level of demand being generated by eligible applicants and to ensure a broad geographic spread of resources throughout the state.


MassDocs loan documents are used by Commonwealth subordinate funding programs for affordable rental projects, including the Affordable Housing Trust Fund.