Tax-Exempt Bonds

Obtaining tax-exempt financing has long been a challenge for affordable housing developers. Recognizing this, MHP offers two types of low-rate, tax-exempt bond financing:

MATCH Program

The Massachusetts Tax-Exempt for Credit Financing Program (MATCH) makes low-rate, tax-exempt bond financing available for affordable rental housing developments from $2.75 million to $15 million. Click here to download the MATCH term sheet.

MATCH combines MassDevelopment's ability to raise money through tax-exempt bonds with MHP's ability to bring in private-sector financing, in this case crucial letters of credits from its funding banks. These letters of credit back the bonds and allow them to be AAA-rated, providing the borrower the lowest possible interest rate.

LITE Bond Program

The LITE Bond Program was created in 2005 by MHP, MassDevelopment and The Life Initiative. The LITE Bond Program makes low-rate, tax-exempt bond financing available for affordable rental housing developments from $1 million to $2.75 million. Click here to download the LITE Bond Term Sheet

Bonds are issued by MassDevelopment on behalf of MHP and are purchased directly by The Life Initiative. The direct purchase of bonds by The Life Initiative eliminates the cost and complexity of a public offering, makes the closing process simpler and helps make tax-exempt bond financing for smaller developments possible.

For more information, call Director of Lending David Rockwell at 617-330-9944x222