State Units Federalization

The State Units Federalization Program is a rolling funding opportunity from the Massachusetts Executive Office of Housing & Livable Communities for rehabilitation or redevelopment work that must occur before state-aided public housing units are federalized. Awards are intended to bring units up to HUD standards so they can move from the state-aided portfolio to federal subsidy and oversight. Eligible applicants are Local Housing Authorities with sufficient Faircloth authority and HUD approval, or sufficient Section 8 subsidy to support the units. Projects must comply with applicable state and federal requirements and HUD federalization parameters, and funded units must remain affordable for at least 30 years, with EOHLC generally expecting affordability in perpetuity. Up to about $35 million over five years may be awarded, with requests capped at $100,000 per unit to be federalized. For full redevelopment projects, applicants must identify other funding sources for costs above that cap, and applications are reviewed on a rolling basis subject to funding availability.