Worcester Announces $1.35M In Funding For Affordable Housing Creation

WORCESTER, MA — The city has announced a new funding opportunity to help create affordable housing.

Worcester is opening the funding round through its Affordable Housing Trust Fund, the city announced on Monday. Community Preservation Act funding worth $1.35 million will be available to support the development of new housing affordable to low- and moderate-income households.

To win funding, developers are invited to apply for projects that create new income-restricted rental or homeownership units. The applications are due by May 7.

Eligible projects must serve households earning up to 80-percent of the Area Median Income, according to the city. Priority for funding will go to proposals that reach deeper affordability levels at or below 60 percent and 30 percent of AMI.

“This funding round is a targeted investment in Worcester’s housing supply, focused on creating homes that are not only affordable, but high-quality, accessible, and connected to opportunity,” said City Manager Eric D. Batista. “By prioritizing deeper levels of affordability and supporting projects that align with our broader housing and planning goals, we are advancing a more equitable housing landscape for Worcester residents.”

Funding awards will be capped at $150,000 per affordable unit or 25 percent of total development costs, the city said.

Competitive proposals are expected to show alignment with municipal priorities, including accessible design, energy efficiency, and access to transit, jobs and services.

The AHTF, which was established in 2021, is overseen by a nine-member Board of Trustees appointed by City Manager Batista. The board advises and assists the city in creating and preserving affordable housing opportunities for low- and moderate-income households.

The city said proposals will be evaluated on several factors, including the depth and duration of affordability, project readiness, development team capacity, financial feasibility, and the inclusion of accessibility and sustainability features.

Worcester is offering optional virtual technical assistance workshops for applicants on Apr. 14 and Apr. 29, 2026, from noon to 1 p.m.

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