City of Worcester Opens $1.35 Million Funding Round to Expand Affordable Housing Supply
By What’s Up Worcester Staff
The City of Worcester Executive Office of Economic Development has officially opened a new $1.35 million funding round aimed at accelerating the creation of affordable housing across the city’s neighborhoods. This investment, facilitated through the Affordable Housing Trust Fund (AHTF), utilizes local Community Preservation Act (CPA) revenue to support developers in building high-quality, income-restricted units.
The funding is designed to bridge the gap for projects that serve low- and moderate-income residents. While the program is open to projects serving those at 80% of the Area Median Income (AMI), the city is placing a heavy emphasis on “deeper affordability”. Priority will be given to developers who commit to housing residents at or below 30% and 60% of the AMI—brackets that often include seniors on fixed incomes, service workers, and families in need of significant housing support.
City Manager Eric D. Batista noted that the initiative focuses on creating homes that are connected to opportunity, meaning proximity to public transit, employment hubs, and essential services. Beyond just the price of rent, the AHTF Board of Trustees will evaluate proposals based on their commitment to sustainable, energy-efficient building practices and accessible design.
For Worcester residents, this round represents a continuation of the city’s strategy to diversify the housing stock. Funding awards are capped at $150,000 per unit or 25% of total development costs, ensuring that the $1.35 million is spread across multiple projects to maximize the number of new homes created.
Developers and non-profit organizations have until May 7, 2026, to submit their proposals. To assist with the application process, the city will hold two technical assistance workshops on April 14 and April 29.
Detailed application materials and eligibility requirements can be found on the municipality’s housing development page.
🔍 The W.U.W. Verification Box
- Project / Topic: Affordable Housing Trust Fund 2026 Funding Round
- Current Status: Request for Proposals (RFP) is open
- Key Dates or Decisions: Technical workshops on April 14 and 29; Applications due May 7, 2026
- Estimated Cost (if applicable): $1.35 million in available CPA funds
- Timeline (if known): Applications close in May; award announcements pending official confirmation
- Immediate Next Steps: Prospective developers must attend workshops or download application materials
- Primary Sources: City of Worcester Executive Office of Economic Development
- What We Do Not Yet Know: The specific neighborhoods where developers will propose projects and the total number of units this round will yield
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