Message from the Chair
and Chief Executive Officer
We are pleased to present MassHousing’s Annual Financial Report for Fiscal Year 2024 (July 1,
2023 – June 30, 2024). This report highlights MassHousing’s strong financial position and our
continued leadership in addressing the significant housing challenges facing Massachusetts
residents.
The report details the impact of our financing tools, which have helped to create and preserve
quality affordable rental homes and homes for purchase, positively affecting thousands of
households. As a mission-driven agency, MassHousing uses housing finance to strengthen
communities, serve disadvantaged populations, and lay the foundation for economic prosperity.
In the past fiscal year, MassHousing provided a total of $1.1 billion in affordable housing
financing. This included helping first-time homebuyers achieve homeownership, assisting
developers in creating new affordable rental housing and preserving existing rental homes.
Despite a challenging economic environment, MassHousing achieved both strong financial
performance and mission-oriented outcomes. Our Multifamily business line closed 30
transactions totaling $648.4 million, supporting the creation and preservation of 3,263 rental
housing units, 92% of which (3,006 units) are affordable. As of June 30, 2024, we serviced 1,758
multifamily loans with an outstanding balance of $7.4 billion.
In our Home Ownership business line, we helped 2,315 Massachusetts residents buy their
first home by providing $401.9 million in first mortgage financing. In a higher interest rate
environment, we supported low to moderate-income households achieve homeownership
by providing $24.1 million in down payment assistance loans. An additional 182 homeowners
utilized $5.1 million in MassHousing financing to remove lead paint, repair or replace septic
systems, or make home improvements.
MassHousing has significantly expanded the Agency’s grantmaking capacity in recent years.
MassHousing administers specialized capital grant programs on behalf of the Executive Office of
Housing and Livable Communities, and utilizes state and federal funding sources to provide direct
financial support to projects and programs. In the past fiscal year, MassHousing received $210.8
million in grant income from state and federal sources and disbursed a total of $69.9 million in
grant expenses. By comparison, just two years ago, in Fiscal Year 2022, the Agency received $9.3
million in grant income and disbursed $11.7 million in grant expenses. This expanded capacity
to receive and expend grant funding – with a particular emphasis on homeownership, housing
stability and affordability, and neighborhood stabilization – complements our mission-based
lending and deepens the Agency’s overall impact in communities across Massachusetts.
MassHousing is proud to partner with the Healey-Driscoll Administration to incubate the nation’s
first green bank dedicated to affordable housing, the Massachusetts Community Climate Bank.
Over the past fiscal year, and in partnership with agencies across state government, MassHousing
has operationalized the Climate Bank, engaged with funding partners in pursuit of a portion
of $27 billion in federal funding, and launched an innovative mortgage program that assists
homeowners across Massachusetts in making clean energy improvements to their homes. The
Natural Resources Defense Council recently ranked Massachusetts as second in the nation for
accessibility to federal clean energy funding. We are excited about the Climate Bank’s progress
to date, creating new ways for MassHousing to serve the housing needs of low- and moderate-
income residents.
While the financial aspects of our work are crucial, the people we serve are at the heart of our
mission. Our website, www.masshousing.com, features stories of homebuyers and renters we
assist, the partners we collaborate with, and other programs and services we offer that go well
beyond “bricks and mortar.”
We remain as committed as ever to making economic opportunities available to historically
disadvantaged businesses, and to providing access to a broad range of programs and resources
that help make MassHousing-financed apartment communities vital and vibrant places to live.
We extend our gratitude to our many partners and stakeholders, including the Healey-Driscoll
Administration, the legislature, developers, property owners, property managers, home mortgage
lenders, financial advisors and bond counsels, auditors, housing advocates and others.
Thank you for reading this report and for your support of MassHousing. We could not succeed
without you.
Jeanne Pinado Chrystal Kornegay,
Chair Chief Executive Officer
MASSACHUSETTS HOUSING FINANCE AGENCY
FINANCIAL STATEMENTS, REQUIRED SUPPLEMENTARY INFORMATION,
SCHEDULES AND SUPPLEMENTAL SCHEDULES
JUNE 30, 2024 AND 2023
TABLE OF CONTENTS
REPORT OF INDEPENDENT AUDITORS .......................................................................................... 1-3
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) .............................................. 4-19
FINANCIAL STATEMENTS
AGENCY FINANCIAL STATEMENTS (JUNE 30, 2024 AND 2023)
Statements of Net Position .................................................................................................................... 20
Statements of Revenues, Expenses and Changes in Net Position ......................................................... 21
Statements of Cash Flows ................................................................................................................ 22-23
FIDUCIARY FUND FINANCIAL STATEMENTS (DECEMBER 31, 2023 AND, 2022; AND DECEMBER 31, 2023
AND 2022)
Statements of Fiduciary Net Position ................................................................................................... 24
Statements of Changes in Fiduciary Net Position ................................................................................ 25
NOTES TO FINANCIAL STATEMENTS ...................................................................................................... 26-88
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
MASSACHUSETTS HOUSING FINANCE AGENCY EMPLOYEES’ RETIREMENT SYSTEM
Schedule of Changes in the Agency’s Net Pension Liability/(Asset) and Related Ratios ..................... 89
Schedule of Agency Contributions ........................................................................................................ 90
MASSACHUSETTS HOUSING FINANCE AGENCY OPEB TRUST
Schedule of Changes in the Agency’s Net OPEB Liability and Related Ratios .................................... 91
Schedule of Agency Contributions ........................................................................................................ 92
SCHEDULES AND SUPPLEMENTAL SCHEDULES
MORTGAGE/CONSTRUCTION LOAN OBLIGATIONS AND COMMITMENTS ............................................... 93-104
BONDS PAYABLE ............................................................................................................................... 105-107
NOTES AND OTHER INDEBTEDNESS ...........................................................................................................108
MBS FORWARD CONTRACTS – HEDGING DERIVATIVE INSTRUMENTS .........................................................109
COMBINING FINANCIAL STATEMENTS ............................................................................................... 110-117
 Report of Independent Auditors
To the Members of the Massachusetts Housing Finance Agency
Opinions
We have audited the accompanying financial statements of the business-type activities and
fiduciary fund information of Massachusetts Housing Finance Agency and its affiliates (the
“Agency”), which comprise the statements of net position and of fiduciary net position as of June
30, 2024 and 2023, and the related statements of revenues, expenses, and changes in net
position, of changes in fiduciary net position and of cash flows for the years then ended, including
the related notes, which collectively comprise the Agency’s basic financial statements.
In our opinion, based on our audits and the reports of other auditors, the accompanying financial
statements present fairly, in all material respects, the respective financial position of the business-
type activities and fiduciary fund information of the Agency as of June 30, 2024 and 2023, and
the respective changes in financial position and, where applicable, cash flows for the years then
ended in accordance with accounting principles generally accepted in the United States of
America.
We did not audit the financial statements of the Massachusetts Housing Finance Agency OPEB
Trust as of and for the years ended December 31, 2023 and 2022, which represent 17 percent and
16 percent of the assets of the fiduciary fund information as of June 30, 2024, and 2023,
respectively, and 19 percent and -5 percent of additions of the fiduciary fund information for the
years then ended. We did not audit the financial statements of the Massachusetts Housing
Finance Agency Employees’ Retirement System as of and for the years ended December 31, 2023
and 2022, which represent 83 percent and 84 percent of the assets of the fiduciary fund
information as of June 30, 2024, and 2023, respectively, and 81 percent and 105 percent of
additions of the fiduciary fund information for the years then ended. The financial statements of
the Massachusetts Housing Finance Agency OPEB Trust and the Massachusetts Housing Finance
Agency Employees’ Retirement System were audited by other auditors whose reports have been
furnished to us, and our opinion, insofar as it relates to the amounts included for the
Massachusetts Housing Finance Agency OPEB Trust and the Massachusetts Housing Finance
Agency Employees’ Retirement System, which as discussed in Note B are the two fiduciary
activities making up the fiduciary fund information, is based solely on the reports of the other
auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (US GAAS). Our responsibilities under those standards are further described in
the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We
are required to be independent of the Agency and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements
in accordance with accounting principles generally accepted in the United States of America, and
for the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error.
PricewaterhouseCoopers LLP, 101 Seaport Boulevard, Boston, Massachusetts 02210
T: (617) 530 5000, www.pwc.com/us
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In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the Agency’s
ability to continue as a going concern for twelve months beyond the financial statement date,
including any currently known information that may raise substantial doubt shortly thereafter.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but
is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance
with US GAAS will always detect a material misstatement when it exists. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user
based on the financial statements.
In performing an audit in accordance with US GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the
audit.
• Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, and design and perform audit procedures responsive to
those risks. Such procedures include examining, on a test basis, evidence regarding the
amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Agency's internal control. Accordingly,
no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the Agency’s ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
Required Supplemental Information
Accounting principles generally accepted in the United States of America require that
management’s discussion and analysis on pages 4 through 19 and the schedules of changes in the
Agency's net pension liability/ (asset) and related ratios and of Agency contributions for the
Massachusetts Housing Finance Agency Employees' Retirement System Plan, and the schedules
of changes in the Agency's net OPEB liability and related ratios and of Agency contributions for
the Massachusetts Housing Finance Agency OPEB Trust on pages 89 through 92 be presented to
supplement the basic financial statements. Such information is the responsibility of management,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have
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applied certain limited procedures to the required supplemental information in accordance with
auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Supplemental Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Agency’s basic financial statements. The supplemental information on
schedule 1 – mortgage / construction loan obligations and commitments and schedule 5 –
combining statements of net position, of revenues, expenses and changes in net position and of
cash flows by program (collectively referred to as the “supplemental information”) are presented
for purposes of additional analysis and are not a required part of the basic financial statements.
The combining information is not intended to present, and we do not express an opinion on, the
financial position, changes in financial position and cash flows of the individual programs. The
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves and other additional
procedures, in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the supplemental information, is fairly stated, in all material respects, in
relation to the basic financial statements taken as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the Message from the Chair and Executive Director, but does not include
the basic financial statements and our auditors’ report thereon. Our opinions on the basic
financial statements do not cover the other information, and we do not express an opinion or any
form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the
other information and consider whether a material inconsistency exists between the other
information and the basic financial statements, or the other information otherwise appears to be
materially misstated. If, based on the work performed, we conclude that an uncorrected material
misstatement of the other information exists, we are required to describe it in our report.
Boston, Massachusetts
September 20, 2024
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 Massachuse