Small Property Acquisition Fund (SPAF) Pilot

The Small Property Acquisition Fund (SPAF) is a statewide program administered by the Community Economic Development Assistance Corporation (CEDAC), a public-private community development financial institution (CDFI), on behalf of the Executive Office of Housing and Livable Communities (EOHLC) in Massachusetts. The goal of the program is to prevent displacement of low- and moderate-income tenants threatened by rising housing costs and to create long-term affordable rental and ownership housing by facilitating nonprofit acquisition of existing small properties.

Subject to funding availability, eligible nonprofit organizations may receive acquisition assistance for existing residential properties of 1–8 units (which may span multiple buildings totaling up to 8 units). At least half the units in every project must be restricted and affordable to residents earning at or below 80% AMI, though remaining units are not required to be income or rent restricted. Properties must meet minimum health and safety standards, and each acquisition must include at least one additional source of soft financing, such as local HOME or CPA funds or philanthropic support. SPAF funding is structured as a 0% deferred payment loan with a term of 30 to 50 years.

Using federal American Rescue Plan Act (ARPA) funds, the state established a $1 million SPAF Pilot Program and awarded funding to three community development corporations in April 2025, the Boston Neighborhood Community Land Trust, Chinatown Community Land Trust, and Dorchester Bay Economic Development Corporation, to collectively acquire 8 units.