Mayor Michelle Wu’s administration will competitively award up to $35 million through Boston’s Housing Accelerator Fund, offering low-cost construction loans and equity to shovel-ready projects that include affordable homes and can break ground by September 30, 2027.
The city framed the September 21 announcement—publicized again this week—as a way to close financing gaps that have left approved developments stalled amid high interest rates and rising construction costs. City officials said the fund is meant to move projects from paper approvals into active job sites across Boston neighborhoods.
How the Housing Accelerator Fund Works
Through a Request for Proposals issued by the Boston Housing Authority, the revolving fund can provide up to $20 million per project in subordinate construction financing—debt or equity repaid after a primary construction lender. Eligible developments must include at least 100 housing units, hold Boston Planning & Development Agency and Zoning Board of Appeal approvals, and be able to start construction by the September 2027 deadline.
Private construction loans often cover only 60 to 75 percent of project costs, city officials said, leaving developers scrambling for expensive gap financing. Below-market fixed rates and low fees are designed to shrink that shortfall so projects can proceed sooner. Repaid principal, fees, and interest are scheduled to roll back into the fund for future rounds.
Tied to Broader Housing Push
Wu linked the RFP to a recent proposal for targeted tax abatements on four previously approved market-rate projects. Together, those efforts could help jumpstart roughly 1,400 homes—including about 180 income-restricted units—and support an estimated 1,582 jobs, according to City Hall figures.
“We’re taking an all-of-the-above strategy to build the housing Boston needs,” Wu said in the city’s announcement. Boston Housing Authority Administrator Kenzie Bok called the model a chance to invest now, recoup public capital, and finance more homes later. City Councilor Enrique Pepén, who chairs Housing & Community Development, said the awards could activate vacant lots that have long been promised as family housing.
Early Results and Deadline
The $110 million Housing Accelerator Fund, proposed in 2024 and unanimously approved by the City Council in January 2025, is already backing 266 homes under construction at Bunker Hill Building F in Charlestown—208 market-rate and 58 deeply affordable apartments expected by summer 2027. The fund also partners with the state’s MassHousing Momentum Fund on longer-term mixed-income financing.
RFP responses are due by 2:00 p.m. on October 23, 2026, with bidder questions due by 2:00 p.m. on September 28, according to the Boston Housing Authority. Banking and development partners, including Bank of America managing director Maurice Coleman, publicly praised the revolving last-mile approach as a practical response to today’s construction-finance squeeze.
For Boston renters and buyers watching stalled sites, the next test is whether the $35 million competitive round converts approved plans into cranes, concrete, and move-in dates before the 2027 start-construction cutoff.
