Libby Hayes

The meeting included the Chief Executive's Report, which summarized fourth-quarter activity, noting twelve deals committed and twenty-one deals closed totaling $435 million in debt. Updates were provided on the Third Floor Build Out renovation, expected to finish in Spring 2026, and plans for MassHousing's 60th birthday celebration in October 2026. A significant presentation detailed a forthcoming Accessory Dwelling Unit ("ADU") Mortgage Program, which will utilize $5 million from the Opportunity Fund to address housing shortages, focusing on homeowner preparedness, affordable financing through a new subordinate loan product, and collaboration with the Board of Appraisers. Loan Committee actions involved approvals for several proposals, including commitments for tax-exempt conduit loans, equity commitments, subordinate loans, and workforce housing loans for projects such as 900 Morrisey in Boston, Residences at Quarry Hills in Milton, Devenscrest Village in Ayer, and the complex restructuring for PAC-10 Lofts, Phase One, in Lawrence. Furthermore, the board held a special session to vote on committing CCRI funds to six organizations for sober housing preservation and creation projects.

The meeting included an overview of Mortgage Insurance Fund (MIF) performance for the period spanning 4QFY25 through Q1FY26. Key performance indicators discussed were the year-over-year portfolio balance increase, which was primarily driven by higher activations, and the year-over-year profit decrease attributed to lower net premium income and higher administrative expenses. Specific financial metrics shared included net premium of approximately $1.24M and total claims of $2.34M, reflecting a 97% increase in claims. The discussion also covered loan characteristics for Q1FY26, such as FICO, DTI, LTV, and CLTV trends, noting a drop in CLTV due to program changes. Furthermore, delinquency and foreclosure rates were reported as increasing due to seasonal adjustments. A snapshot of required assets for HFAMIERs, based on risk characteristics, was presented, showing total available assets of $143 million against calculated required assets of $16.5 million.

The meeting included a review of the Investment and Audit Committee Report for Q4 of Fiscal Year 2025, with discussion on audit engagements, a moderate risk level finding related to documentation between Legal and Underwriting, and the absence of reported fraud instances. Concerns raised by state auditors regarding the 3% Priority Program were addressed. The status of the 2025 Financial Statements Audit was presented, noting a material instance of non-compliance with a HUD requirement. Highlights from MassHousing's Financial Statements were reviewed, including a lease amendment extending the building lease to 2046 and an increase in Operating Revenue due to grant activity.

The meeting included several key operational and financial discussions. The Chief Executive's Report covered the success of the Pie in the Sky fundraiser and a positive outlook revision from Moody's rating agency. A detailed presentation on the 2026 Volume Cap addressed the impact of the 25% test, projecting a significant increase in financed units, and included an analysis of how increased volume cap efficiency benefits single-family borrowers through lower mortgage interest rates, evidenced by projected savings over the life of the loan. The Staffing Update presented the organization's demographic statistics, noting strong female representation and commitment to improving leadership diversity, alongside reporting on recent hiring and attrition trends. The meeting recessed to convene a separate meeting for the Center for Community Recovery Innovations, Inc. (CCRI), where grants totaling $639,088 were approved for six organizations for housing preservation and creation projects. Finally, the Loan Committee approved commitments and official action status for several projects: Exchange Salem Four, Exchange Salem Nine, Cambridge Blanchard I, Warren Hall in Boston (Brighton), and the Transfer of Interests for Woodland Cove Phase III in Wareham.

This impact report by MassHousing details the efforts of the Massachusetts Community Climate Bank (MCCB) to address housing challenges, rising energy costs, and the affordable housing crisis in the Commonwealth through clean energy and energy efficiency initiatives. Key programs highlighted include the Energy Saver Home Loan Program (ESHLP) for homeowners, Deep Energy Retrofit Demonstration Loans for affordable rental housing, and the Massachusetts Energy Savings Finder tool. The MCCB aims to reduce greenhouse gas emissions, improve energy efficiency, enhance climate resilience, and lower utility bills for low- and moderate-income residents, ultimately contributing to the state's net-zero by 2050 climate goals by demonstrating measurable impact and scaling investments.