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Boston Acquisition Fund



Program Purpose

The Boston Acquisition Fund provides low-interest loans to nonprofits, community land trusts, and socially-minded developers to acquire tenanted multi-family properties. The goal is to expand the City of Boston's ability to prevent displacement, preserve affordability, and combat private investor competition in the housing market.

The Challenge: NOAH at Risk
  • Naturally Occurring Affordable Housing (NOAH) is crucial to affordable housing in Massachusetts but is increasingly acquired by private investors, leading to:
    • Displacement as properties are vacated and sold.
    • Higher rents and loss of affordable units.
    • Gentrification, disproportionately impacting economically diverse communities of color.

Proposed Solution: The Boston Acquisition Fund
  • A revolving loan fund offering low-interest debt to support affordable housing preservation.
  • Provides 100% financing for acquisitions, featuring:
    • Below-market interest rates to reduce carrying costs.
    • Fast and streamlined underwriting for quicker closings.
    • Flexible terms to aid affordability planning.

Impact Goals
  • In 3-5 years:
    • 700 units preserved, stabilizing housing for over 2,000 residents.

Financing Products
  1. Senior Debt:
    • Loan: Up to $20M | Term: up to 20 years | Low Fixed/ rates
    • Collateral: First mortgage
  2. Subordinate Debt:
    • Loan: Up to $5M | Term: 3-10 years | Low fixed rates
    • Collateral: Second mortgage, repaid via cash flow or capital events.

To apply for the Boston Acquisition Fund please contact Beth O'Donnell at odonnell@mhic.com.

Together, we can preserve affordable housing and protect communities from displacement.


See the Boston Acquisition Fund Q & A here.


Examples of housing types that could become permanently affordable through this revolving loan fund:


6 Apartments
Fenway




11 SRO Units
Allston




3 Family-sized Apartments
Mattapan