Massachusetts DHCD: Housing Programs and Community Development

The Massachusetts Department of Housing and Community Development sits at the center of the state's effort to close a housing gap that — by the department's own accounting — is structural, persistent, and measurable. DHCD administers federal and state funding streams, oversees rental assistance programs, sets standards for affordable housing production, and coordinates community development block grants across Massachusetts's 351 cities and towns. What it does, and how it decides what it will and won't fund, affects everyone from a landlord in Holyoke to a first-time homebuyer in Gloucester.

Definition and scope

DHCD is a cabinet-level executive agency within the Massachusetts Executive Branch, created to manage housing finance, homelessness prevention, and community development programs on behalf of the Commonwealth. Its statutory authority derives from Massachusetts General Laws, primarily Chapter 23B, which establishes the agency's mandate and structure.

The department's portfolio spans four broad domains: rental housing assistance, homeownership programs, community development funding, and homelessness services. Within rental assistance alone, DHCD administers the Massachusetts Rental Voucher Program (MRVP), a state-funded program distinct from — and often confused with — the federally funded Section 8 Housing Choice Voucher program that flows through local housing authorities rather than DHCD directly.

On the community development side, DHCD serves as the state's designated administrator for the U.S. Department of Housing and Urban Development's Community Development Block Grant (CDBG) program, distributing federal allocations to communities with populations under 50,000 that are not designated as HUD "entitlement communities." Cities like Boston, Worcester, and Springfield receive CDBG funding directly from HUD as entitlement communities and fall largely outside DHCD's community development grant jurisdiction — a distinction that trips up a lot of applicants.

DHCD also administers the Low Income Housing Tax Credit (LIHTC) program in Massachusetts, acting as the Qualified Allocation Plan authority. The LIHTC program, established under Section 42 of the Internal Revenue Code, is the primary financing mechanism for affordable rental housing construction and rehabilitation in the state.

How it works

DHCD operates through a combination of direct program administration and pass-through funding to local housing authorities, regional nonprofits, and community development corporations (CDCs).

The department's major program mechanisms include:

  1. Massachusetts Rental Voucher Program (MRVP) — State-funded mobile and project-based vouchers administered through regional nonprofit agencies, not local housing authorities.
  2. Rental Assistance for Families in Transition (RAFT) — Short-term emergency rental assistance for households at risk of homelessness, delivered through a network of regional administering agencies.
  3. Community Development Block Grant (CDBG) — Federal formula grant funding distributed to non-entitlement communities for infrastructure, housing rehabilitation, and public services.
  4. Low Income Housing Tax Credit (LIHTC) allocations — Annual competitive tax credit allocations governed by the Qualified Allocation Plan (DHCD Qualified Allocation Plan).
  5. MassHousing partnership programs — DHCD coordinates with MassHousing, the state's quasi-public housing finance agency, on mortgage programs and affordable housing finance, though MassHousing operates independently.
  6. Chapter 40B oversight — DHCD certifies whether a municipality has met the 10% affordable housing threshold under Massachusetts General Laws Chapter 40B, the Comprehensive Permit Act, which triggers or removes the right of developers to bypass local zoning in communities below that threshold (M.G.L. Chapter 40B).

The 10% threshold under Chapter 40B is one of the more consequential numbers in Massachusetts housing policy. A municipality where fewer than 10% of housing units qualify as affordable — using DHCD's subsidized housing inventory methodology — is subject to comprehensive permit applications that can override local zoning boards. DHCD maintains and updates the subsidized housing inventory that determines each community's status.

Common scenarios

A developer seeking tax credits to build 60 affordable units in Worcester would submit a competitive application to DHCD under the annual LIHTC allocation round. DHCD scores applications against criteria in the Qualified Allocation Plan, including location, energy efficiency, proximity to transit, and population served. The scoring system is published; the competition is real.

A family facing eviction in Springfield might access RAFT funds through a regional administering agency designated by DHCD. RAFT provides up to $10,000 per household in a 12-month period (a cap set by administrative policy and subject to legislative appropriation levels), covering arrears, moving costs, or deposits.

A town of 18,000 residents applying for CDBG funds would work directly with DHCD's community development division rather than HUD, submitting applications through the state's annual allocation process. The eligible activities mirror the federal program: public infrastructure, housing rehabilitation, economic development, and planning.

A municipality in Essex County seeking to demonstrate compliance with Chapter 40B would submit documentation to DHCD showing that certified affordable units equal at least 10% of year-round housing stock as defined in the subsidized housing inventory.

Decision boundaries

DHCD's jurisdiction is specifically Massachusetts-based. The department does not administer federal public housing programs — those are managed by local housing authorities under HUD oversight. DHCD does not regulate private landlords directly; that function belongs primarily to municipal boards of health and, for discrimination claims, the Massachusetts Commission Against Discrimination.

The department's scope also does not extend to:

For a broader picture of how housing policy fits into the Commonwealth's legislative and regulatory framework — including the interaction between state housing law and municipal zoning authority — Massachusetts Government Authority provides structured coverage of state agency jurisdiction, legislative authority, and the constitutional framework that defines what agencies like DHCD can and cannot do. It functions as a reference layer for anyone trying to understand where one agency's authority ends and another's begins.

The geographic coverage of DHCD programs varies by program type. MRVP and RAFT operate statewide. CDBG non-entitlement coverage explicitly excludes the 37 HUD-designated entitlement communities in Massachusetts, which administer their own CDBG funds. LIHTC allocations are statewide but concentrate historically in eastern Massachusetts due to land costs and development density.

For full context on how DHCD relates to Massachusetts housing policy more broadly, the Massachusetts housing policy page addresses the legislative history and ongoing policy debates that shape what DHCD is funded — and authorized — to do. The Massachusetts State Authority homepage provides orientation across all state agencies and their jurisdictions.

References