Revolving Credit Facility Opportunity: Affordable Housing Financing

Massachusetts Development Finance
Agency 99 High Street
Boston, MA 02110
www.massdevelopment
.com
June 8, 2026
REQUEST FOR PROPOSALS
Multi-Family Recycling Credit Facility
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TABLE OF CONTENTS
Section
I. STATEMENT OF PURPOSE
II. BACKGROUND
III. KEY TERMS
IV. METHOD OF EVALUATION
V. SCHEDULE AND INSTRUCTIONS
A. Submission and Due Date
B. Single Point of Contact
C. Bidder's Conference
VI. ADDITIONAL PROVISIONS
A. Confidentiality
B. Non-Discrimination
C. Rights of MassDevelopment
D. Use of Respondent's Proposal
E. Respondent Proposal Costs
Exhibit A - Descriptive Chart
Exhibit B - Bid Form
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I. STATEMENT OF PURPOSE
The Massachusetts Development Finance Agency ("MassDevelopment" or "Agency") is
requesting proposals pursuant to this Request for Proposals ("RFP") for a revolving credit facility
(the "Facility") that will enable preservation of tax-exempt facility bonds issued for qualified
residential rental projects ("Multifamily Volume Cap Bonds") in accordance with I.R.C. Section
146(i)(6). The credit facility will allow the Agency to make tax-exempt loans to new projects to
support the preservation and creation of affordable housing across the Commonwealth.
Borrowings under the Facility will occur at the time of repayment of certain bonds made under
MassDevelopment's tax-exempt bond programs. The cash repayments will serve as the sole
collateral for the Facility and will be deposited in a segregated pledged account that will secure
a related borrowing under the Facility. Please see Exhibit A for a chart further describing the
purpose and use of the Facility.
II. BACKGROUND
MassDevelopment provides financing and real estate development services to support economic
growth and community development across the Commonwealth. Created in 1998 through the
merger of several state financing authorities, MassDevelopment operates as a self-supporting,
quasi-public agency of the Commonwealth of Massachusetts. MassDevelopment issues taxable
and tax-exempt bonds and notes, administers state and federal financing programs, and deploys
a range of lending tools, including direct loans, loan guarantees, and credit enhancements.
MassDevelopment plays a central role in Massachusetts' municipal bond market by serving as a
conduit issuer and financing partner for projects that advance economic development and public
benefit. It issues both tax-exempt and taxable bonds on behalf of municipalities, nonprofits, and
private developers, enabling borrowers to access capital at lower costs than traditional financing.
A significant portion of its work supports multifamily affordable housing, where
MassDevelopment issues Multifamily Volume Cap Bonds to finance the creation and
preservation of affordable and mixed-income housing developments. These bonds allow
borrowers to access federal Low-Income Housing Tax Credits (LIHTC), in addition to providing
lower borrowing costs. MassDevelopment assists in structuring transactions to comply with
volume cap allocations, federal tax rules, and state housing priorities, and works with banks and
underwriters to execute bank direct purchase of bonds and public market bond sales. Through
this combination of bond issuance, technical expertise, and collaboration, MassDevelopment
helps expand housing supply and affordability while enabling municipalities to pursue long-term
community development goals.
MassDevelopment's lending and investment activities include the provision of direct loans and
credit facilities to support development projects and operating needs, often in coordination with
its bond financing programs. The agency also manages a portfolio of loans and credit exposures,
overseeing compliance, risk management, and servicing functions. In addition,
MassDevelopment owns and manages a portfolio of real estate assets and provides technical
assistance and redevelopment services to advance complex projects, including the repositioning
of underutilized or state-owned properties.
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For additional information about MassDevelopment, please visit our web site at
www.massdevelopment.com.
III. KEY TERMS
A. Available Commitment: $25,000,000, with an accordion up to $50,000,000
B. Effective Date: Approximately 10/1/26.
C. Commitment Expiration Date: Approximately 10/1/28 (two years from Effective Date)
D. Collateral: Cash repayments
E. Amounts borrowed under the Facility may be repaid and re-borrowed between the
Effective Date and the Commitment Expiration Date.
F. Commitment Reduction / Termination: the unused portion of the Available Commitment
may be permanently reduced or terminated by MassDevelopment without penalty with
five business days' written notice.
G. Offer Expiry Date: no earlier than 9/30/26.
IV. METHOD OF EVALUATION
Proposals submitted in accordance with this RFP will be evaluated by a selection committee
composed of MassDevelopment staff. MassDevelopment will use a variety of criteria to evaluate
the proposals. Such criteria may include proposed fees, net costs (borrowing costs net investment
earnings) flexibility of terms to MassDevelopment, Provider ratings, relative trading valuations
in the market, proposed length of the Facility, demonstrated experience of the Provider in
providing similar facilities to housing agencies, extent of credit approval at the time of submission,
and remaining steps and time for final credit approval. MassDevelopment may award the Facility
based on proposal(s) MassDevelopment deems best in its sole discretion, which may not be the
lowest bid.
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V. SCHEDULE AND INSTRUCTIONS
A. Submission and Due Date
Please submit a completed Bid Form (attached to the RFP as Exhibit B) via email to
taxexemptbonds@massdevelopment.com and copy jwu@massdevelopment.com, by 3:00 pm
Eastern Time on June 30, 2026. Please type "[Name of your Firm] - "Credit Facility" in the
subject line of the email.
Proposals may not be submitted by hard copy or facsimile. Proposals delivered after the date and
time due may be considered of deemed in the best interest of MassDevelopment.
B. Point of Contact
Any questions regarding this RFP or the selection process may only be made via email to Jacob
Wu at jwu@massdevelopment.com and taxexemptbonds@massdevelopment.com by June 16,
2026, at 5:00 pm. No firm submitting a proposal may make any inquiries with respect to this RFP
to any other MassDevelopment employee, Board member or any other state agency official until
final selections have been determined and publicly announced by MassDevelopment.
All questions must be submitted in writing by the time and date above. It is the responsibility of
respondents to ensure that they receive all information pertaining to this RFP by visiting the
website link listed above to check for any addenda or modifications. All responses will be
posted on the MassDevelopment website, www.massdevelopment.com (RFPs and RFQs -
MassDevelopment) on June 23, 2026, by 5:00 pm.
VI. GENERAL PROVISIONS
MassDevelopment reserves the right to reject any or all responses or parts of responses, to
solicit new responses, and to enter into or not enter into any agreement(s) as it deems to be in
its best interest.
Diverse respondents are encouraged to submit responses. No respondent will be subject to
discrimination on the basis of race, color, sex, or national origin in consideration of the
responses.
MassDevelopment reserves the right to waive any informalities, minor deviations, insignificant
mistakes, and matters of form rather than substance and to seek clarification of any proposals,
which can be waived or corrected without material prejudice to other respondents, potential
respondents, or MassDevelopment. No officer or agent of MassDevelopment is authorized to
waive this reservation.
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A proposal may be modified or withdrawn by a respondent prior to the proposal submission
deadline by delivering a written notice to the Agency representative that is authorized to receive
questions as set forth above.
MassDevelopment is providing the information in this RFP for the convenience of prospective
respondents. Respondents are advised that MassDevelopment makes no representations or
warranties, express or implied, that the parcels comply with the zoning, that the parcels can be
used for any particular use or purpose, or about the condition of the parcels. Proposers are
expected to undertake an independent review and analysis of the zoning, physical and
environmental conditions, required approvals and other considerations applicable to the
development of the parcels. Acceptance of the proposal does not constitute permit approval that
may be required, nor does it create any kind of binding legal relationship between the proposer
and MassDevelopment. Proposers are responsible for all aspects and content of their
responses to this RFP, including, but not limited to any costs incurred in connection with the
preparation and submittal thereof.
DISCLAIMER: This document (the "RFP") does not consist of an offer nor a contract, but is
merely an advertisement intended to potentially elicit offers from interested developers. All
documents or other submittals to MassDevelopment shall become property of
MassDevelopment. All proposers are advised that MassDevelopment is subject to the
Massachusetts Public Records Laws (M.G.L. c. 66 10 and related statutes and regulations)
and that any documents, tangible media, etc., submitted to MassDevelopment will be subject to
public disclosure in accordance with applicable law. Respondents to this RFP will not be
compensated or reimbursed for any costs incurred in preparing a response. MassDevelopment
is not obligated to sell, lease, or otherwise contract for the sale of the subject property or any
other services or products described herein.
MassDevelopment reserves the right to (1) accept or reject any or all proposals, (2) waive any
anomalies in proposals, (3) negotiate with any respondent, and (4) modify or cancel the RFP.
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EXHIBIT A

EXHIBIT B - Bid Form
Provider Contact Information: Bank Name:
Primary Contact:
Address:
Telephone:
Fax:
Email:
Provider Ratings: Moody's S&P Outlook/Watch
LT / ST LT / ST
Current:
Prior:
(Include any rating changes since January 1, 2020)
Are the above ratings based upon a guaranty, insurance, or other form of support from a different entity?
If yes, please identify that entity and its relationship to the Provider.
Maximum Commitment $
Amount (Including a
Potential Accordion):
Pricing (spread & index):
Also note any unutilized
commitment fee, upfront fees,
draw fees, amendment fees, bank
counsel legal fees or any other
fees that would apply. Please also
note if interest is capitalized and,
if so, whether this can be offset
by investments.
Term:
Please indicate the typical maturity
you would provide for this type of
line of credit and describe what (if
any) extension options you would
provide.

Deposit Account and
Investments:
Please describe the approach for
investments, including options and
rates. In particular, please note if the
use of PFM Asset Management for
investments is permitted.
Pledge:
Please describe what type of pledge
you may require as part of the line of
credit. Note that preference will be
given to bids that require only a
pledge of cash flow or a third party
borrower to provide collateral in
addition to the cash repayments.
Other Terms and Conditions:
Please state any other conditions
to your commitment to fund and
any other terms or provisions
under the proposed facility.
MassDevelopment reserves the
right to negotiate any proposed
conditions and covenants. If any
conditions are not negotiable, the
bank should indicate such
provisions in its proposal.

Procedure for Accordion
Increase, Renewals and
Extensions:
Please indicate process to request
an accordion increase and if you
are willing to permit
renewals/extensions, for an
additional year, on an annual
basis and describe such
procedures.
Credit Approval:
Please indicate if you have credit
approval, and if not, if you will be
able to meet the financing
timetable.
Bank Counsel: