Housing Development Incentive Program

The Housing Development Incentive Program supports housing projects in Massachusetts Gateway Cities by encouraging production of market-rate rental and homeownership housing, while also supporting mixed-income development. The 2026 notice says projects may include affordable units and that HLC will prioritize proposals with a suitable unit mix for families. The program is for developers seeking HDIP awards for specific projects located within an approved Housing Development zone and connected to an approved Tax Increment Exemption agreement. HLC also gives preference to projects that incorporate climate-resilient and green design features such as electric heating and cooling, Passive House design for new construction, and solar-ready or solar installations. In 2026, HLC will run two competitive application windows rather than a rolling process. The notice describes significant available authority, with awards in the $2 million to $4 million range, and requires projects to meet HDIP statutory and program requirements tied to approved zones and TIE agreements.