The Housing Development web pages are primarily intended for developers. If you are interested in buying or renting affordable housing, "click here."
The City of Newton supports the development of affordable housing by making funding available for the acquisition, new construction and rehabilitation of units, as well as through programs and policies that support the development of rental and for-sale affordable units to income-eligible individuals and families.
The City provides funding to nonprofit and for-profit housing developers and providers to preserve and increase the supply of affordable housing in the city. The City receives federal Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funds from the U.S. Department of Housing and Urban Development on an annual basis to support the development and preservation of affordable housing units for low- and moderate-income individuals, families, the elderly and people with special needs.
City housing development funds are most typically committed to projects that require multiple sources of financing. The City will provide initial financing (“first in”) that can serve as an impetus to encourage other lenders to support a project and as gap financing, if necessary, to ensure project feasibility.
Eligible Uses of Funds
Depending on the source of funds, financial assistance is available for acquisition, reducing the principal balance on a mortgage, and rehabilitation (if a moderate amount of rehabilitation work is required and is part of a larger CDBG- or HOME-funded acquisition project). Funds are available to support the development of both homeownership and rental units. Both permanent and transitional housing, including group residences, are eligible for funding.
Nonprofit and for-profit affordable housing developers and providers are eligible to receive funding.
Terms of Funding Assistance
Funds are available as deferred forgivable loans at 0% interest for a 50-year term for nonprofit housing developers. The terms are the same for for-profit developers except the interest rate is prime plus 1% point. The interest rate is established at the beginning of a housing development project so that it can be reflected in financial pro formas.
Term of Affordability
Projects assisted with federal funds are deed restricted in perpetuity (with approval from the Massachusetts Department of Housing and Community Development), or to the maximum extent permitted by law, prior to closing on funds.
The gross annual household income for homebuyers or tenants of affordable units cannot exceed 80 percent of Boston area median income. The U.S. Department of Housing and Urban Development determines the income limits annually. Household income is determined by the number of persons in the household and the total gross household income. Please click here for the current income guidelines.
The City of Newton is committed to ensuring that persons of all ages and abilities can participate in affordable housing opportunities without barriers that limit their access to this valuable resource. In its efforts to expand the stock of affordable housing and secure barrier-free use by its residents and to assure that Newton is a diverse and welcoming community, the City of Newton encourages developers who seek public funds for affordable housing to exceed the minimum legal requirements for accessibility applicable to the program from which funding is sought. Read the Accessibility in Affordable Housing: Newton Guidelines
One-Stop Application Process
- Applications for funding are accepted on a rolling basis. Eligible applicants are required to complete a One-Stop application and provide the necessary supporting material, e.g. financial pro forma, operating budget, etc.
- After staff review, proposed projects are reviewed by the Newton Housing Partnership and the Planning and Development Board at regularly scheduled monthly meetings.
- Once a proposed project is approved by the Planning and Development Board, a recommendation for funding is submitted to the Mayor, who must approve the commitment of federal funds to all housing development projects.