Massachusetts Homeownership Tax Credit
The Massachusetts Homeownership Tax Credit is a new program to increase homeownership opportunities for moderate-income homebuyers by supporting the development of new, affordable homeownership units in the Commonwealth. Created under the Affordable Homes Act and administered by MassHousing, the program provides up to $10 million in tax credits per year for five years through calendar year 2029.
The utilization and allocation of tax credits will be governed by a Homeownership Qualified Allocation Plan (HQAP) issued by MassHousing.
Eligible Projects/Applicants
To be eligible for the Massachusetts Homeownership Tax Credit Program
- Developments may be located in any city/town in Massachusetts
- Developments must contain 10 or more for-sale units
- At least 20% of units must designated as affordable to income-qualified first-time homebuyers.
Program Details and Restrictions
Tax credits must be used to reduce the price of newly constructed homes so that affordable units may be purchased by income-qualified homebuyers who earn no more than 120% of the area median income.
The expected per unit subsidy available through this program is approximately $225,000 to $250,000 (the subsidy is based on a formula in the HQAP).
Affordable units will be subject to a deed restriction that limits any resale to income-qualified first-time homebuyers for a 10-year period following initial purchase. Homeowners may participate in the equity appreciation of their home during the 10-year restricted period according to an increasing scale based on the length of time the home is owned.
Investors may take the full amount of the tax credit in the first year in which all affordable units are sold and closed. Credits may be rolled over into subsequent tax years for a maximum period of 10 years should the investor have insufficient state tax liability to use the full value of the credit in one year.
Application Information
Tax credits will be allocated through a competitive process administered by MassHousing. Applications for tax credits will be evaluated according to a series of criteria in the HQAP, with readiness to proceed, financial feasibility, and strength of the development team among the primary factors that determine how resources are allocated.
Developers must secure a construction lender and tax credit investor, who are to be included as part of any application for Homeownership Tax Credits.
Program Timeline
Winter 2026 | Program Announcement: Homeownership Qualified Allocation Plan (HQAP) issued.
Winter 2026 | Pre-Application Reviews Begin.
Spring 2026 | Formal Application Invitations: Pre-Application Reviews completed and screened applicants are invited to submit a formal application.
Spring 2026 | Final Applications Due.
Spring/Summer 2026 | Application Review
Summer 2026 | Announcement of Awards