MAYOR MICHELLE WU ANNOUNCES UP TO $35 MILLION IN LOW-COST FINANCING TO ACCELERATE HOUSING CONSTRUCTION IN BOSTON

MAYOR MICHELLE WU ANNOUNCES UP TO $35 MILLION IN LOW-COST FINANCING TO ACCELERATE HOUSING CONSTRUCTION IN BOSTON



The Housing Accelerator Fund will provide developers low-cost construction loans and equity investment to close financing gaps, advance stalled projects and build more homes for Boston residents sooner

BOSTON - Monday, September 21, 2026 - Mayor Michelle Wu today announced that the City’s Housing Accelerator Fund will competitively award up to $35 million in low-cost construction loans or equity investments to housing developments in Boston that are ready to begin construction and include an affordable component. 

This announcement builds on the Mayor’s recent proposal of targeted tax abatements for four previously approved market-rate housing developments. Together, those projects could help jumpstart construction of approximately 1,400 homes, including 180 income-restricted, and support an estimated 1,582 jobs across Boston. These efforts are part of the City’s broader effort to accelerate housing production and help projects advance more quickly into the construction.

“We’re taking an all-of-the-above strategy to build the housing Boston needs,” said Mayor Michelle Wu. “With this model, we expect our public investment to help leverage hundreds of millions of dollars in private capital to move construction projects forward. We thank the many banking and development partners who have helped us shape this new opportunity.”

The Housing Accelerator Fund will help unlock stalled developments by filling a critical gap in the construction financing market. Private construction loans typically cover only 60 to 75 percent of a project’s cost, leaving developers to secure additional, often expensive financing before they can break ground. The Fund will supplement private loans with below-market fixed-rate financing and low fees, reducing the overall cost of building new housing. Because the Fund provides capital during construction rather than after completion, it can be utilized on a faster timeline. Repaid principal, along with fees and earned interest, will revolve back into the Housing Accelerator Fund, allowing the City and BHA to make further investments in housing production.

Through a Request for Proposals (RFP) issued by the Boston Housing Authority (BHA), the Housing Accelerator Fund will provide up to $20 million per project in subordinate construction financing, meaning debt or equity that is repaid after a project’s primary construction lender. Developments must contain at least 100 housing units, must have obtained all applicable Boston Planning & Development Agency and Zoning Board of Appeal approvals, and must be able to start construction by September 30, 2027.

“If we can invest to get homes built in these difficult times, then recoup our public investment to produce even more housing in the future, that is a huge win for Boston residents at every income level,” said Kenzie Bok, Administrator and CEO of the Boston Housing Authority. “The Boston Housing Authority is proud to partner with the City to offer this innovative tool to get Boston building the homes we so urgently need.”

This approach is the latest step in the City’s broader effort to accelerate housing production by moving approved projects into construction despite high interest rates, rising construction costs, and other economic headwinds affecting development nationwide.

“The Housing Accelerator Fund will launch many housing projects that have been struggling to break ground due to federal, state, and other large financial grants on pause,” said City Councilor Enrique Pepén, Chair of Housing & Community Development. “This award will be the activation to see the vacant lots or properties that have been promised to be homes for our families come to fruition.”

 

“What the City is offering is exactly what many projects need to solve their financing puzzle, especially as interest rates rise,” said Maurice Coleman, Managing Director at Bank of America. “We commend Mayor Wu for continuing to think creatively about how to get housing built in Boston.”

“A revolving fund aimed at last-mile financing is a smart and fiscally sustainable way to get new homes built faster in this environment,” said Colin Higgins, Executive Director of the National Housing Crisis Task Force. "We are glad to see the Boston Housing Authority and Mayor Wu lead with proven strategies outlined in our State and Local Housing Action Plan, showing how more and more states, cities, and their partners are taking the lead in driving innovation to solve our nation’s housing crisis."

  

The complete RFP is available on BHA’s website. Responses are due by 2:00 PM on October 23, 2026. Inquiries related to the RFP from potential bidders should be directed to bids@bostonhousing.org by 2:00 PM on September 28, 2026.