Governor Patrick Announces Funding to Support New Homeownership Opportunities Across the Commonwealth

Press Release

Governor Deval Patrick today announced new support for homeownership opportunities for first-time homebuyers across the Commonwealth, including the production of new affordable homes and access to reduced-cost mortgages through various lenders. The announcement comes as 26 mortgage lenders and over 1,000 first time homebuyers have signed on and utilized the Mass Homeownership Compact, a commitment among lenders to originate mortgage loans to first-time home buyers with household incomes below the area median income.

"Investing in housing generates jobs, grows local businesses and strengthens our communities," said Governor Patrick. "Supporting reasonably priced housing for moderate and middle income families, along with our strategy of investing in education, innovation and infrastructure, will fuel sustainable long term economic growth."

The $9 million in funding, supported by the Affordable Housing Trust Fund and the Housing Stabilization Fund, will create over 160 new affordable and market rate homes across the Commonwealth. The funds allow the homes to be priced so they are affordable to low and moderate income residents. Friday's announcement, made at a Citizens Bank branch in Dorchester, marks the end of Commonwealth Housing Week.

"Housing is the cornerstone to economic success in the Commonwealth and the Massachusetts housing market is well on its way to being fully recovered," said Aaron Gornstein, Undersecretary for the Department of Housing and Community Development (DHCD). "Through key initiatives and collaborations across state government, we continue to ensure a stable and robust housing market for our neighbors and our communities."

In June 2013, Governor Patrick announced the Mass Mortgage Compact creating a goal of providing 10,000 mortgage loans to first-time homebuyers over the next five years. The Homeownership Compact includes a commitment among lenders to originate mortgage loans to first-time home buyers with household incomes below the area median income through the MassHousing and the Massachusetts Housing Partnership programs.

Since its formation, 26 mortgage lenders have signed onto the Mass Homeownership Compact, and over 1,000 loans have been made to low- and moderate-income first-time homebuyers. Earlier this week, as part of Commonwealth Housing Week, the Massachusetts Division of Banks awarded $1.5 million in grants to 11 regional foreclosure prevention centers and 10 individual/first-time homeownership centers across the Commonwealth. The Division of Banks funds first-time homeownership counseling programs and regional foreclosure educational centers with administrative fees associated with the licensure of mortgage loan originators.

"Grants like these help rebuild communities, help strengthen local housing markets and advance the state's economic growth," said Undersecretary of Consumer Affairs Barbara Anthony. "These grants, funded by fees paid by loan originators, will go back into communities and help families that are in trouble to help stabilize communities and to help first time homebuyers realize the American dream of owning their own home."

"There continue to be pockets of distressed properties in certain communities and neighborhoods that require ongoing attention and resources, which is why foreclosure prevention and first time homebuyer education efforts are so crucial," said Commissioner of Banks David J. Cotney. "Public-private partnerships which allow for innovative ideas such as the compact and for us to reinvest administrative fees directly into communities via grant money are truly the foundation for a stronger housing market."

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