MassHousing Announces Record Lending for Affordable Housing in Fiscal Year 2004.

BOSTON -- MassHousing announced today that it provided $704 million in financing for more than 7,000 housing units in fiscal year 2004, which ended June 30. It was the strongest lending year ever for the 38-year-old quasi-public agency.

"We are making great strides to increase the supply of housing in Massachusetts and to help more people achieve the dream of home ownership," said Governor Mitt Romney. "This record-setting performance from the state's affordable housing bank is encouraging news for anyone who is concerned about affordable housing."

MassHousing's '04 performance was $142 million, or 25% above its previous high mark of $562 million, set just two years ago in fiscal year 2002.

"We continue to see a huge demand for our financing, and we are extremely pleased with our performance," said MassHousing Executive Director Thomas R. Gleason. "Working through our partner banks as well as with numerous developers and property owners, we helped to put thousands of Massachusetts residents into affordable homes and apartments again this year."

As a result of the Agency's performance, MassHousing received positive evaluations from the two major Wall Street bond-rating agencies. Standard and Poor's reaffirmed its rating of A, and Moody's reaffirmed its rating of A2.

MassHousing's core business is to make below-market rate loans to low- and moderate-income home buyers, finance new mixed income housing and preserve existing affordable rental housing.

MassHousing also launched two new major affordable housing initiatives in FY 04:

--The Priority Development Fund (PDF), a new $100 million fund to provide gap-filler financing for the new construction of mixed-income rental housing using 'Smart Growth' principles. Over five years, the fund will help to leverage at least $1 billion in other financing and help to create as many as 5,000 new units. Also included was $3 million in planning assistance funds for cities and towns.

--MI Plus(TM), a revolutionary new private mortgage insurance product that, in addition to helping families buy a home with little or no downpayment, helps them keep their home by providing up to six months of mortgage payment protection for the borrower(s) in the event they become unemployed.

Also in fiscal year 2004, MassHousing received three awards for innovative programs from the National Council of State Housing Agencies as well as an award from the New England Business and Technology Association for its e-business platform.

"By all measures, MassHousing had a great year," said Gleason. "We are responding to the need for affordable housing with competitive financing as well as creative products and programs, and we are financially sound. I applaud the efforts of the professionals who work at MassHousing. Our staff is the best in the business."

The Massachusetts Housing Finance Agency, now doing business as MassHousing, is the leading provider of affordable housing in Massachusetts. Since 1970, MassHousing has provided more than $8.5 billion in financing for more than 80,000 units of mixed-income rental housing and over 43,000 mortgage loans for first-time home buyers. For more information, visit the MassHousing website at www.masshousing.com.