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MassHousing CommonWealth Builder (CWB)
Program Guidelines
November 2025
CommonWealth Builder (“CWB”) is MassHousing’s moderate-income homeownership production
program. Under CWB, MassHousing provides forgivable subordinate construction financing to eligible
projects that provide deed-restricted affordable homeownership units (“Restricted CWB Units”).
Table of Contents
Eligibility Criteria A. Geographic Eligibility
B. Team Eligibility
C. Project Eligibility
D. Unit Eligibility
Funding E. CommonWealth Builder Funding Levels and Requirements
F. Developer Fee and Overhead
Affordability G. Affordability Restrictions and Requirements for Restricted CWB Units
Application and
Approval
H. Application Components
I. Review and Approval Process
J. Documentation
A. Geographic Eligibility
Eligible Locations Projects must be located in any of:
a. Boston
b. Gateway Cities
• Attleboro, Barnstable, Brockton, Chelsea, Chicopee, Everett, Fall River,
Fitchburg, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn,
Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Revere,
Salem, Springfield, Taunton, Westfield, Worcester
c. Disproportionately Impacted Communities
• Framingham, Randolph, as well as municipalities listed in a. and b. above
d. Qualified Census Tracts in other cities and towns
B. Team Eligibility
Team The project team (the “Sponsor”) must meet the following requirements:
a. Have a history of developing at least one homeownership project of similar scale,
b. Be in good standing with MassHousing and other state agencies,
c. Demonstrate financial capacity, including, but not limited to, a track record of
securing financing for comparable developments, and
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d. Include staff or contractor with substantial and successful experience in
managing all Affirmative Fair Housing Marketing Plan (“AFHMP”)
requirements.
C. Project Eligibility
Project Type Production (New Construction or Adaptive Reuse)
In addition to the Restricted CWB Units, eligible projects may include market
homeownership units, restricted and/or market rental units, and/or ancillary
commercial units. To ensure the availability of mortgage financing for homebuyers,
unless otherwise approved by MassHousing, no more than 35% of the floor area of
any building that includes Restricted CWB Units may be occupied by rental units or
commercial space.
Restricted CWB Units must be dispersed throughout the Project, across unit types,
and include comparable unit finishes to market units, if applicable.
Development Type Fee-simple single-family homes or condominiums with professional management.
Unless otherwise approved by MassHousing on a case by case basis, condominium
projects must be located on one more contiguous parcels.
Unit Count In general, eligible projects must have at least ten (10) Restricted CWB units.
Physical
Accessibility
All projects must comply with applicable federal, state and local accessibility codes,
including the Commonwealth of Massachusetts Architectural Access Board
Regulations 521 CMR 1.00 et seq. (the “MAAB Regulations”) and, to the extent
applicable, the design and construction requirements of Title III of the Americans
with Disability Act, the Fair Housing Act, and Section 504 of the of the
Rehabilitation Act of 1973.
Additionally, regardless of code requirements, at least one (1) Restricted CWB Unit
in each project must meet the accessibility requirements of a “Group 2A” dwelling
unit under the MAAB Regulations.
Readiness to Proceed Sponsor must demonstrate a high level of readiness for construction and submit all
application materials (listed in Section H) including a term sheet from a construction
lender.
Applications will be accepted and reviewed on a competitive basis as described in
Section I below.
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D. Unit Eligibility
Age Restriction None permitted.
Income Restriction Restriction tiers permitted from 70 to120% of AMI; generally, no higher than the
income level at which comparable market units are affordable (assuming 30% of
income spent on housing). For units restricted at 80% of AMI, the income limit will be
as determined annually by HUD as the “low income” limit. For all other tiers, income
limits will be as published annually by MassHousing in connection with its Workforce
Housing Program.
Overlapping
Restrictions
Unless otherwise approved by MassHousing, Restricted CWB Units may not be subject
to additional affordability restrictions imposed by ground leases, deed restrictions or
other subsidy programs.
All units in a project restricted at the same affordability tier (e.g., 80% of AMI) must be
restricted by the same form of deed restriction.
Homebuyer
Requirements
Restricted CWB Units must be sold to first-time homebuyers as defined below.
First-time homebuyer means an individual or household, of which no household
member has had an ownership interest in a principal residence at any time during
the three (3)-year period prior to the date of qualification as an eligible purchaser,
unless such ownership was by (i) any individual who is a displaced homemaker (as
may be defined by the Massachusetts Executive Office of Housing and Livable
Communities) (ii) any individual who is a single-parent who has only owned a
house with a former spouse while married or (iii) any individual who has owned a
dwelling unit whose structure is not permanently affixed to a permanent foundation
in accordance with local or other applicable regulations or is not in compliance with
applicable building codes, or other applicable codes, and cannot be brought into
compliance with the codes for less than the cost of constructing a permanent
structure.
At the time eligibility is determined, homebuyers must have assets that comply with the
following limits:
1) less than $155,000 as of September 2025, which is adjusted annually in
subsequent years for inflation using the CPI-W index; and
2) excluding all IRS-recognized retirement accounts, up to $250,000 total.
Recipients of HUD assistance are exempted from the CWB asset limit.
Additionally, homebuyers must (1) obtain a fully amortizing, fixed-rate, 30-year
mortgage loan that meets CommonWeath Builder homebuyer financing requirements,
(2) provide a minimum 3% down payment from their own funds or an approved Down
Payment Assistance program, (3) pay closing costs, and (4) complete homeownership
counseling by the time of purchase.
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These Homebuyer Requirements shall apply to all CWB Projects, including those
committed and funded under prior versions of the CWB Guidelines.
Homebuyer
Preferences
First, preference will be made for homebuyers that are rightsized households based on
the targeted AMI tier and the unit size. Rightsized Household means a household with a
number of members equal to or more than the number of bedrooms in a given unit plus
one.
Second, preference will be made for homebuyers that are Disproportionately Impacted
Households defined as: A household that (i) has an annual income at or below 80% of
area median income for the location of the project; or (ii) currently resides in a
“qualified census tract” (as designated by HUD); or (iii) currently resides in one of the
following towns or cities: Boston, Attleboro, Barnstable, Brockton, Chelsea, Chicopee,
Everett, Fall River, Fitchburg, Haverhill, Holyoke, Lawrence, Leominster, Lowell,
Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Revere, Salem,
Springfield, Taunton, Westfield, Worcester, Framingham, or Randolph.
Other preferences may be approved by MassHousing to the extent that such preference
is allowable under applicable law and is subsequent to the preferences listed above.
Local preferences must comply with the Executive Office of Housing and Livable
Communities’ Affirmative Fair Housing Marketing and Resident Selection Plan
Guidelines.
These preferences shall apply to all new CWB Projects and the resale of all Restricted
CWB Units in projects committed and funded under prior versions of the CWB
Guidelines.
Subsidized Housing
Inventory Eligibility
Restricted CWB Units generally do not qualify for inclusion in the Subsidized Housing
Inventory (SHI) maintained by the Executive Office of Housing and Livable
Communities. If required by a local inclusionary zoning ordinance and for projects
relying on CommonWealth Builder as the subsidy program for 40B comprehensive
permit eligibility, MassHousing will consider using a modified deed rider for up to 25%
of the Restricted CWB Units, provided they comprise all units restricted at a given
affordability tier.
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E. CommonWealth Builder Funding Levels and Requirements
State Subsidy In general, Projects may not rely on any other state subsidies or resources, such as
subordinate financing under the Affordable Housing Trust or other Massachusetts
Executive Office of Housing and Livable Communities loan programs.
Local Subsidy Commitment of a local subsidy and/or other development support in some form
(including non-monetary) from the applicable municipality is required.
CommonWealth
Builder Funding
Amounts
All selected projects will be eligible to receive an award of “CWB Formula Funds” on
the basis of the relationship between total development cost and average restricted sale
price.
CWB Formula Funds for each CWB Restricted Unit at 70-100% of AMI shall be no
more than the lesser of:
a. $250,000;
b. The average per unit total development cost (“TDC”) of Restricted CWB Units
(inclusive of permissible developer fee/profit and overhead, and marketing and
brokerage costs) minus the average sales proceeds from the Restricted CWB Units
at 70-100% of AMI.
CWB Formula Funds for each CWB Restricted Unit at 110-120% of AMI shall be no
more than the lesser of:
a. $150,000;
b. The average per unit TDC of Restricted CWB Units (inclusive of permissible
developer fee/profit and overhead, and marketing and brokerage costs) minus the
average sales proceeds from the Restricted CWB Units at 110-120% of AMI.
Projects requiring extensive soil remediation, demolition or site preparation are also
eligible to receive CWB site conditions assistance (“SCA Funds”). See Section H
(Application Components) below for SCA Funds documentation requirements.
MassHousing may award SCA Funds in the amount of estimated extraordinary site
work costs for a project, up to $2,000,000 per project.
For projects in the City of Boston that are undertaken pursuant to the joint initiative
MassHousing has established with the Mayor’s Office of Housing (“MOH”), and other
projects for which MassHousing and another project funder have agreed to coordinate
on construction funding and administration, MassHousing will determine per unit CWB
funding allocations in conjunction with MOH or such other project funder.
Per Project
CommonWealth
Builder Funding
Limit
No project may receive more than $10,000,000 in total CWB Funds, inclusive of CWB
Formula Funds and SCA Funds.
For projects in the City of Boston that are undertaken pursuant to the joint initiative
with MOH, and other projects for which MassHousing and another project funder have
agreed to coordinate on construction funding and administration, MassHousing will
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determine per project CWB funding allocations in conjunction with MOH or such other
project funder.
Delivery of
CommonWealth
Builder Funds
CWB Funds will generally be provided as a forgivable subordinate construction loan to
a single-purpose, sole-asset entity which is created to undertake the project (the
“Developer”) and controlled by the Sponsor.
Generally, up to 90% of the CWB Funds will be available for requisition by the
Developer during the construction period. The remaining CWB Funds will be disbursed
upon approval by MassHousing of a final development budget following project
completion and the sale of all units.
Generally, MassHousing will fund, in the aggregate, up to 90% of each requisition by
the Developer during the construction period with at least 10% to be funded by the
senior construction lender.
In certain instances, including projects in the City of Boston undertaken pursuant to the
joint initiative with MOH, MassHousing may provide funding for projects through the
local municipality or other project funder who has agreed to coordinate with
MassHousing on construction funding and administration.
The structure and terms of such funding will be determined by MassHousing at the
time of CWB funding commitment.
Construction
Monitoring
MassHousing, the Developer, and, at their option, the senior construction lender, shall
engage a lender advisor acceptable to MassHousing, at the Developer’s sole cost, to
provide cost review and construction monitoring services.
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F. Developer Fee / Profit and Overhead
Developer Fee and
Overhead
The maximum permitted developer fee and overhead will be set at the award of
CWB funds according to the following formula:
a. For projects with 25 or more total units (“Large Projects”), total
developer fee and overhead may not exceed 10% of the Total
Development Cost (TDC) (excluding overhead and developer fee)
in the development budget approved by MassHousing at such time
(the “Awarded TDC”); and
b. For projects with fewer than 25 units (“Small Projects”), total
developer fee and overhead may not exceed 12% of the Awarded
TDC (excluding overhead and developer fee).
The maximum permitted developer fee and overhead includes all profits,
distributions, fees and other payments to members and managers of the Developer
and any affiliates thereof, and any payments to third-party development consultants,
in each case, unless otherwise approved by MassHousing. General contractor and
architectural services provided by affiliates of the Developer or Sponsor shall be
reviewed on a case-by-case basis. Any changes to developer fee and overhead based
on increases to Total Development Costs (the “Final TDC”) shall be subject to
MassHousing’s review and approval.
Repayment of Sponsor or investor equity is not counted in the calculation of
developer fee. Returns on Sponsor or investor equity are counted in the developer
fee and overhead calculation.
Cost Savings and
Excess Sales
Proceeds
If the actual sales proceeds realized are higher than projected and are not offset by an
increase in development costs any such cost savings and/or excess sales proceeds
shall be applied as follows:
First, to increasing developer fee and overhead to 10% of the Awarded TDC
per unit for Large Projects or 12% of the Awarded TDC for Small Projects;
Second, to repaying or reducing the amount of Site Condition Assistance
funds, if applicable; and
Third, to repaying or reducing the amount of CWB Formula Funds.
For projects in the City of Boston that are undertaken pursuant to the joint initiative
with MOH, and other projects for which MassHousing and another project funder
have agreed to coordinate on construction funding and administration, excess funds
may be subject to additional restrictions.
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G.Affordability Restrictions and Requirements for Restricted CWB Units
Documentation Except as provided below, restrictions on homeowners who purchase a Restricted
CWB Unit will be set forth in one or more MassHousing form deed rider(s) and a
non-monetary mortgage securing the restriction obligations or similar document(s)
recorded at the closing of unit sale.
For projects in the City of Boston that are undertaken pursuant to the joint initiative
with MOH, and other projects for which MassHousing and another project funder
have agreed to coordinate on construction funding and administration, the
restrictions on homeowners who purchase a Restricted CWB Unit will be set forth in
MOH’s form of Affordable Homeownership Deed Rider and related documents or
such other funder’s form of restriction, respectively, which may have different terms
from those below.
Restriction Term 30 years from initial sale to an eligible homebuyer (including 15 year affordability
term and 15 year shared appreciation term)
Appreciation
Allowance
5% annually (applicable through year 15 of Restriction Term)
Capital Improvement
Credit
Cost of approved capital improvements, less depreciation. Maximum of 3% of initial
purchase price per year of ownership. (Applicable through year 15 of Restriction
Term.)
Family Transfers By-right transfers during Restriction Term to immediate family provided they are
owner occupants. Restriction Term will remain in place.
Initial Sale Price
Restrictions
Sales prices will be set by the Developer at levels that do not exceed the maximum
determined by MassHousing to be affordable to eligible homebuyers within the
targeted affordability requirements. Marketing of the Restricted CWB Units must
commence within sixty (60) days of receipt of MassHousing-determined maximum
sales prices.
Resale Price
Restrictions
Through year 15 of Restriction Term,
lesser of:
a. Price agreed to by buyer;
b. Initial purchase price
+ formula appreciation
+ capital improvement credit; or
c. Price affordable to buyer at restricted
AMI tier set at Initial Sale.
During years 16-30 of Restriction Term:
Unrestricted (but subject to
appreciation sharing; see below)
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Buyer Restrictions Through year 15 of Restriction Term:
Income-qualified first-time
homebuyer, subject to a purchase
option held by MassHousing and the
municipality.
Preferences will be made for
homebuyers from Disproportionately
Impacted Households.
Years 16-30 of Restriction Term:
Unrestricted; subject to purchase
option held by MassHousing and
the municipality.
Appreciation Sharing Through year 15 of Restriction Term:
None.
Years 16-30 of Restriction Term:
50% of appreciation above
permissible year 15 sale price is
shared among public funders.
Restriction Term
Reset
Through Year 15 of Restriction Term:
Restriction Term only resets if
MassHousing or municipality
exercises purchase option and
subjects the unit to new deed rider.
Years 16-30 of Restriction Term:
Restriction Term only resets if
MassHousing or municipality
exercises purchase option and
subjects the unit to new deed rider.
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H. Application Components
1. CWB Application Excel & Executive
Office of Housing and Livable
Communities (EOHLC) Sales Price
Tool
Templates available on MassHousing.com or from MassHousing
staff.
2. Site Information and Photos
Site location, map and photos.
3. Environmental Information –
Environmental Site Assessments
(ESA) Phase 1
Provide an Environmental Site Assessments (“ESA”) Phase I in
compliance with American Society for Testing and Materials
qualification standard (ASTM) E1527-21, conducted by a
qualified Environmental Professional. Reports must identify
recognized environmental conditions (“RECs”), historical uses,
environmental records review and recommend further action if
applicable.
At time of application, developer must upload Phase I ESA
report dated within 6 months. In addition, a Phase I ESA report
dated within 6 months is required for closing. The Phase I ESA
should explicitly incorporate a vapor encroachment screen
performed in accordance with ASTM E2500-15. Provide copies
of previous Phase I ESAs as well as any additional subsurface
investigations.
4. Evidence of Zoning/Permitting
Approvals
Provide zoning or permitting approvals, or if approvals are not
available, provide narrative documenting status/timeline of
approvals required under c. 40B, Boston Planning Development
Agency (BPDA), etc. Please note when zoning approvals expire
and be aware if extensions will be required.
5. Evidence of Site Control and
Acquisition Costs
Provide evidence of site control (Purchase & Sale agreement,
deed, etc.) If there is a developer designation from housing
authority or municipality, please provide. Acquisition costs
carried on the development budget must not exceed the purchase
price of the land and improvements in the last arm’s length
transaction, if any, plus reasonable carrying costs.
6. Affirmative Fair Housing Marketing
Plan (AFHMP)
Plan should include CWB Disproportionately Impacted
Households preference as listed in CWB Guidelines, accurate
income and asset limits, and should be completed by experienced
lottery agent.
7. Community Engagement Narrative
Narrative of strategies to partner with trusted, community based
organizations (Community Development Corporations (“CDC”),
interfaith, social services, etc.) to engage with and prepare
qualified potential families and individuals who have faced and
continue to face disproportionate obstacles for this
homeownership opportunity. This should not be a copy of the
AFHMP. It should identify the plan for meaningful community
collaborations to identify prepared, qualified buyers for whom
CommonWealth Builder was designed to serve.
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8. Evidence of Municipal / Local
Support
Documentation of local subsidy and/or other development
support in some form (including non-monetary).
9. Market Study
MassHousing will review the third-party Appraisal and/or Market
Study submission for general professional practice standards
Uniform Standards of Professional Appraisal Practice
(“USPAP”) for appraisals & National Council of Housing Market
Analysts (“NCHMA”) for market studies, with a focus on the
development, support, and conclusions of individual unit
values/pricing, unit absorption, and marketability
(supply/demand) relative to the unit and affordability mix of the
CWB proposal. Further, the submission must be current, reflect
the unit/affordability mix of the CWB proposal, and take into
consideration the unit configuration/finishes, as well as unit and
site (including parking type) amenities. The report must be
completed by an accredited appraiser or market study
professional. MassHousing will assess current unit pricing,
absorption, and marketability (supply/demand) of the CWB
proposal.
10. Construction Lender Term Sheet
Current letter from construction lender reflecting detailed terms
and conditions for issuing construction financing consistent with
development plan. If this is not available, please explain why.
11. Other Financing Commitments Summarize the current status of all other sources of funding
(including all public funds), including information on:
(a) the source of financing;
(b) the amount; and
(c) the current status of the financing commitment.
Please attach commitment letters, term sheets or letters of interest
from each of the sources identified, verifying the commitment of
funds, or indicating the prospects for securing such a
commitment, and the expected time frame for decisions on
commitments.
12. Sponsor Profile
Provide a resume for the Sponsor(s). The resume should also
include a list and description of completed affordable housing
developments undertaken by the sponsor, as well as other
relevant experience.
13. Evidence of Sponsor Financial
Capacity
Exhibit 9 of OneStop, Financial Statements, audited if available
14. Sponsor Certifications and
Disclosures
Exhibit 8.9 of OneStop, Schedule of Real Estate Holdings,
Certifications and Disclosures
15. Developer Entity Organizational
Chart and Organizational Documents
Provide Developer/Sponsor entity organizational chart and
organizational documents, if available, otherwise provide
description of business relationship among individuals, partners,
etc. Provide a list of related party services provided by
Developer/Sponsor or affiliates and detail on payment amounts.
16. Consultant Profile, if applicable Provide resume of consultant and description of role(s) in
development
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17. Architect Profile Provide a resume for the architectural/design firm. Include the
legal name of the corporation and the names of principal officers
and/ or partners. The resume should also include a list and
description of completed affordable housing developments
undertaken by the firm, as well as other relevant experience.
18. Status of Contractor Selection and
Construction Pricing
Narrative description of status of contractor selection, bidding
and timeline for construction pricing if not yet achieved
19. Contractor Profile Exhibit 8.11 of OneStop, general contractor's Profile, and resume
20. Bid Set Design-Level Drawings and
Specifications, inclusive of
accessibility, fire protection and
MEP narrative.
Provide the following bid set drawings signed by a registered
architect, engineer, contractor, or cost estimator (as appropriate):
detailed cover sheet, detailed site plan, detailed utilities plan,
detailed survey, architectural drawings (including at least one
Group 2A unit), structural drawings, mechanical, electrical,
plumbing/fire protection drawings. Provide bid set
specifications/project manual.
21. Site Conditions Assistance Funds
documentation, if requested
Provide narrative description of qualified site conditions
assistance costs, including extraordinary costs associated with
uniqueness of site, diverse topography, utility coordination,
subsurface excavation, soil backfill, soil and structural
improvements (e.g., rammed aggregate piers or other structural
systems), soil disposition costs, proportionate share of general
conditions and contractor overhead attributable to eligible SCA
scope (not including profit). In addition, provide detailed
Contractor pricing or 3 third party quotes for each identified item
in narrative.
22. Geotechnical/Foundation
Engineering Report
Required for new construction.
23. Management Agent Profile, if
condominium
Include organizational structure and a description of all
homeownership developments currently managed, both assisted
and conventional, including location, number of units and
bedroom mix.
24. Credit Release Form
Exhibit 8.10 of OneStop, Developer's Credit Reference
Authorization
25. Project Notification Form
Complete the Massachusetts Historical Commission (MHC)
Project Notification Form (PNF) template, send to MHC and
submit PNF with MHC determination or concurrence. CWB
financing should be accurately reflected. Project name and
address on PNF should be consistent with CWB information.
Provide copies of any prior correspondence with MHC including
previously submitted PNFs. Include USGS map with project site
indicated and all referenced attachments (i.e. architectural
drawings, etc).
26. Homebuyer Mortgage Lenders Provide a plan describing your engagement with homeownership
lenders and their financing products (including loan terms,
interest rates, and annual percentage rates (APRs) for this
development and confirm your sales prices reflect that
engagement.
27. Application Fee
An initial non-refundable application fee of $1,000 shall be due
at application submission. For awarded projects, an additional
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non-refundable fee of $6,500 shall be due at closing. Upload
copy of CWB application invoice.
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I. Review and Approval Process
Application Deadline Applicants must submit a complete application (components listed in Section H,
above) by the date stated in the Notice of Funding Availability in a competitive
funding round.
Application Portal Applications must be submitted through the MassHousing online portal. A link to
the portal will be available on MassHousing’s CWB landing page after decisions on
pre-application submissions are finalized..
Application Review
& Evaluation
Application components are reviewed by financial and technical staff in the Strategic
Community Investments, Multifamily and Planning and Programs divisions of
MassHousing.
Evaluation criteria include:
1. Compliance with CWB Guidelines
2. Alignment with CWB Project Selection Preferences
3. Readiness to Proceed and Development Schedule
4. Financial Feasibility of the Project
5. Capacity and Experience of Development Team
6. Project Marketability
7. Local Support
8. Construction Scope
Exhibit 1 (CWB Application Evaluation Criteria) provides specific criteria for
project review.
A Program Advisory Committee, which includes MassHousing staff, will review
project proposals recommended by program staff for funding, including the
underwriting analysis and funding recommendations of Agency staff, and
recommend the developments that will receive program funding.
Approval Final approval of all recipients shall be by the Chief Executive Officer or their
designee. The Chief Executive Officer or their designee, in consultation with the
General Counsel, may waive certain CWB program guidelines for individual CWB
projects due to extraordinary project-specific or market conditions, subject to the
requirements of MassHousing’s source of funds.
Geographic Equity Funds shall be distributed in a manner that promotes geographic equity.
Preferences The following types of projects shall receive preference:
• Projects requesting under $5 million in CWB Funds, under $250,000 in
CWB Funds per CWB unit, and total development costs per unit for all
Project units within a competitive range under $599,999;
• Projects that include clean energy and sustainability features, such as electric
heat pumps, net-zero developments, Passive House or equivalent energy
efficiency certification and all-electric buildings; and
• Projects with units targeted at 70% of AMI.
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J. Documentation and Closing Requirements
Commitment Commitment of CWB Formula Funds and SCA Funds shall be documented by
MassHousing as follows:
a. Where project funding will be provided as a forgivable subordinate
construction loan directly to the Developer, MassHousing will issue a
commitment to the Developer following approval of funding and prior to
execution of a loan agreement.
b. Where MassHousing and the local municipality or other project funder have
agreed to coordinate on construction funding and administration (including
the joint initiative with MOH in the City of Boston), commitment will
typically be evidenced in the term sheet among MassHousing, the
municipality or other project funder, and the Developer.
Loan Agreement and
Developer
Obligations
For forgivable subordinate construction loans funded by MassHousing directly to the
Developer, the Developer’s obligations will be set forth in project documents as
required by MassHousing, including a loan agreement, regulatory agreement,
promissory note, mortgage, environmental indemnity agreement, and affordability
monitoring services agreement.
For forgivable subordinate construction loans to projects for which MassHousing
and the local municipality or other project funder have agreed to coordinate on
construction funding and administration (including the joint initiative with MOH in
the City of Boston), the Developer’s obligations will be set forth in the financing
documents of such other funder.
Other Closing
Requirements
At or prior to construction closing, Developers will be required to provide to
MassHousing a lender’s title insurance policy with respect to the loan of CWB
Funds, a zoning endorsement or legal opinion as to the project’s zoning compliance,
a certification by the project architect as to compliance with local building codes and
accessibility requirements, and American Land Title Association (“ALTA”) survey,
evidence of liability and builder’s risk insurance coverage, and such other items as
MassHousing program staff may determine.
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Exhibit 1: CWB Application Evaluation Criteria
Threshold Criteria
a. Approved pre-application demonstrating readiness for closing and construction. Requirements include:
• Evidence of site control for all parcels
• Evidence of zoning compliance, including status of any approvals and expiration dates
• Each source has either commitment letter, term sheet or Letter of Intent (LOI,) including municipal
support
• Balanced permanent Sources & Uses and sufficient construction sources to complete the construction
phase consistent with CWB funding standards
• A current Environmental Site Assessment (ESA) Phase I report
• Geotechnical/Foundation Engineering report if new construction
• For adaptive rehabilitation, Lead-Based Paint (LBP) and Asbestos-Containing Materials (ACM)
reports (either identifying remediation needed or confirming compliance)
• Advanced status of drawings and construction pricing
• Project Notification Form and Massachusetts Historical Commission concurrence
b. Completed CommonWealth Builder (CWB) Application, including all relevant attachments and paid
application fee
Comparative Criteria
a. Compliance with CWB Guidelines, including meeting all Eligibility Criteria, Funding and Affordability
Requirements.
b. Alignment with CWB Project Selection Preferences, including under $5 million in CWB Funds and under
$250,000 CWB subsidy/unit requested, total development costs per unit below $599,999, project
sustainability features, projects with units targeted at 70% of AMI, fully executed general contractor
contract, and monetary local support.
c. Readiness to Proceed, including zoning and permitting in place, environmental reports and plans for
remediation as applicable, evidence of site control, contractor pricing, and Massachusetts Historical
Commission Project Notification Form with MHC concurrence.
d. Financial Feasibility of the Project, including committed sources and construction lender term sheet,
balanced budget with feasible development schedule, and sales prices within programmatic maximums.
e. Capacity and Experience of Development Team, including evidence of developer financial capacity and
demonstrated experience, certifications and disclosures, organizational entity and business relationship
information, related party services and payments, contractor and architect profiles, and management agent
profile, if condominium.
f. Project Marketability, including Affirmative Fair Housing Marketing Plan (AFHMP) consistent with
CWB program, community engagement, and market study or appraisal prepared with general professional
practice standards (Uniform Standards of Professional Appraisal Practice (USPAP) for appraisals &
National Council of Housing Market Analysts (NCHMA) for market studies) for the development unit
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affordability mix and sales prices supporting unit absorption consistent with development schedule and
sufficient marketability (supply/demand).
g. Local Support in the form of either local subsidy or non-monetary development support.
h. Construction Scope with bid set plans and specifications with required accessibility.