Momentum Fund supports creation of 192 mixed-income rental homes

The Healey-Driscoll administration on July 7 announced $15 million in Momentum Fund financing to advance three mixed-income housing developments that will create 192 new rental homes in Milton, Middleton and Newburyport.

The projects, which have already received local approvals, will use the financing to move into construction more quickly, helping deliver much-needed housing for Massachusetts residents.
Gov. Maura Healey said the Momentum Fund lowers financing costs, unlocks private investment and moves permitted projects into construction.

MassHousing is committing $2.5 million in public equity funding to the Residences at Quarry Hills, a new 40-unit mixed-income rental community in Milton, and $6.5 million to the third phase of the Newburyport Crossing development, which will create 92 new mixed-income rental homes adjacent to the Newburyport MBTA Commuter Rail station.

In addition, MassHousing is committing $6 million to the Residences at Middleton Corner, which will create 60 new mixed-income rental homes in Middleton’s town center.

The Momentum Fund, created by the Healey-Driscoll administration under the Affordable Homes Act, accelerates housing production, especially middle-income units, without relying on typical grant and subsidy resources. The fund leverages low-cost capital and the expertise of private developers to help already-permitted, much-needed housing projects begin construction.

By leveraging this financing tool, MassHousing can help build more homes sooner. MassHousing aims to support the creation of more than 1,000 new units of multifamily housing with $50 million of state investment capital, and is evaluating how to further expand this goal with co-investment partnerships.
To date, Momentum Fund equity investments totaling $30 million, combined with associated mortgage financing, have supported the development of 627 mixed-income rental homes, including 140 affordable homes, according to the administration. Additional financing commitments will follow in the coming months.

MassHousing (the Massachusetts Housing Finance Agency) is an independent, financially self-sustaining agency created in 1966 to confront the Commonwealth’s housing challenges. The agency provides financing to low- and moderate-income homebuyers and homeowners, and to developers who build or preserve rental housing.