WORCESTER—The city is making $1.25 million in new funding available to support the creation of affordable housing, officials announced Thursday.
The funding round, administered through the city’s Affordable Housing Trust Fund (AHTF), is backed by Community Preservation Act (CPA) funds and aims to assist qualified developers in building income-restricted rental or homeownership units.
“This funding round reflects the city’s ongoing commitment to expanding access to affordable housing,” City Manager Eric D. Batista said in the announcement. “By targeting deeper affordability and promoting projects that are accessible, sustainable, and community-centered, the Trust is helping shape a more inclusive future for Worcester.”
Eligible projects must create housing affordable to households earning up to 80% of the area median income (AMI), with particular focus on serving those earning at or below 60% and 30% of AMI. Funding awards get capped at $150,000 per affordable unit or 25% of total development costs, whichever is lower.
According to the city, the most competitive proposals include accessible design elements, high energy efficiency, and proximity to transit, employment, and essential services.
The AHTF is guided by a nine-member Board of Trustees appointed by the City Manager. The board evaluates proposals based on factors such as the depth and duration of affordability, project readiness, financial feasibility, development team capacity, and sustainability features.
To accommodate different levels of project readiness, applications are divided into two tiers:
- Tier 1 (shovel-ready projects) are due by Sept. 17
- Tier 2 (general applications) are due by Oct. 15
Developers can find application materials and full program guidelines on the city’s website. There are also two optional technical assistance workshops for interested applicants:
- In-person: Wednesday, Aug. 27, from noon to 1 p.m. in the Levi Lincoln Chamber at Worcester City Hall
- Virtual: Wednesday, Sept. 3, 2025, from noon to 1 p.m.
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