City of Worcester Affordable Housing Trust Fund Opens New Funding Round

WORCESTER, Mass. - The City of Worcester Executive Office of Economic Development announced Thursday a new funding opportunity to support the creation of affordable housing. Through its Affordable Housing Trust Fund (AHTF), the municipality is offering $1.25 million in Community Preservation Act (CPA) funds to help qualified developers create new housing that's affordable for low- and moderate-income households.

"This funding round reflects the City's ongoing commitment to expanding access to affordable housing," said City Manager Eric D. Batista. "By targeting deeper affordability and promoting projects that are accessible, sustainable, and community-centered, the Trust is helping shape a more inclusive future for Worcester."

Developers can now apply for funding to support projects that create new income-restricted rental or homeownership units. Projects must be affordable for households earning up to 80% of the area's median income, with a focus on reaching those at or below 60% and 30%.

Funding awards are capped at $150,000 per affordable unit or 25% of total development cost, whichever is less. The most competitive proposals will include features such as accessible design, energy efficiency, and easy access to transit, jobs, and services.

The AHTF is overseen by a nine-member Board of Trustees appointed by the City Manager. The role of the Board is to advise and assist the municipality in creating and preserving affordable housing for the benefit of low- and moderate-income households.

The Board of Trustees will evaluate proposals based on depth and duration of affordability, project readiness, development team capacity, financial feasibility, accessibility, and sustainability features.

To accommodate different stages of project readiness, the application includes two tiers. Tier 1, for shovel-ready projects, is due by Sept. 17, 2025. Tier 2, for general applications, is due by Oct. 15, 2025.

Application materials and additional information are available on the City's website at
https://www.worcesterma.gov/housing-neighborhood-development/affordable-housing-trust-fund

Optional technical assistance workshops will be held on Wednesday, August 27, 2025, from 12 (noon) to 1 p.m. in the Levi Lincoln Chamber at Worcester City Hall, and virtually on Wednesday, Sept. 3, 2025, from 12 (noon) to 1 p.m.