MassWorks News

WORCESTER, July 9, 2008 --- The Commonwealth of Massachusetts and MHP are teaming up with five Worcester employers to offer a new employer-assisted mortgage program designed to help first-time homebuyers afford homes near to where they work.

Worcester Polytechnic Institute, Holy Cross, UMass Memorial Health Care, Clark University and Assumption College are the first organizations to offer MassWorks, a new statewide program that features the blending of an employer contribution and a dollar-for-dollar state match with traditional fixed-rate mortgage financing from a bank.

“We are pleased to be helping these employers promote homeownership for their employees and their neighborhoods,” said Tina Brooks, the Patrick Administration’s housing chief. “MassWorks is another example of the Patrick Administration’s comprehensive efforts to assist homeowners and stabilize neighborhoods across the Commonwealth and we hope that more employers will take advantage of this wonderful benefit.”

Created by the Massachusetts Housing Partnership (MHP) and the state Department of Housing and Community Development, MassWorks was unveiled in 2008 at a press conference announcing Buy Worcester Now, a multi-faceted effort by the city, state, local businesses and banks to offer a series of mortgage products designed to promote long-term homeownership.

“We are pleased to be able to offer MassWorks as part of our comprehensive effort to promote homeownership in the city,” said Michael V. O’Brien, Worcester’s city manager during the morning event at Worcester's DCU Center.

MassWorks is different than many traditional employer-assisted mortgage programs where employer funds are used strictly for down-payment assistance. While down-payment assistance is possible, MassWorks takes an employer contribution and a dollar-for-dollar state match and applies it to a homebuyer’s monthly mortgage payment, spread out over 10 years. This keeps a homebuyer’s payments low.

Worcester employers comment on MassWorks

“With MassWorks, we will be better able to help our employees realize the dream of homeownership,” said Dennis D. Berkey, president and CEO of Worcester Polytechnic Institute.

“As the largest employer in the region with 12,000 employees, our responsibility is to not only provide quality health care but to also play a role in the health of the community,” said UMass Memorial President and CEO John G. O’Brien. “There are a host of issues that impact the health of the community and lack of affordable housing is one of the core components of building a healthy community. We are pleased to be part of MassWorks’ efforts to help employees and working families buy homes they can afford. We see this as an important community benefit.”

“With this initiative from MassWorks, more of our employees will realize the benefits of homeownership, including greater stability in their lives and strengthened ties with the community,” said Rev. Michael C. McFarland, S.J., president of Holy Cross. “We are committed to partnerships like this one that help make Worcester an excellent place to live and learn for all residents.”

“Clark has long recognized the importance of homeownership for creating strong neighborhoods and building community,” said John Bassett, president of Clark University. “The addition of MassWorks to Clark’s existing employee homeownership package will make living in the neighborhood around Clark more affordable for many of our employees.”

“Assumption College is very pleased to offer our employees access to the unique opportunity available through the MassWorks homeownership program,” said Francesco Cesareo, president of the college. “Helping our employees buy a home in Worcester benefits their families and also strengthens our community. It is an investment in the future and a win-win-win situation for the employees, Assumption College and Worcester.”

Modeled after SoftSecond


MassWorks’ graduated payment system is modeled after MHP’s SoftSecond Loan Program, which has helped nearly 12,000 households purchase their first home, while maintaining industry-low foreclosure rates. SoftSecond has been especially successful in Worcester, making almost 500 loans. MHP is a state, non-profit affordable housing agency funded by banks.

“SoftSecond has proven to be a wonderfully successful, safe and secure mortgage for first-time homebuyers in Worcester,” said Gina Govoni, MHP’s director of the SoftSecond Loan Program. “MassWorks is an effort to capitalize on that success while also giving employers a benefit that will help them recruit and retain employees and make their communities stronger. “
MassWorks can be flexible to an employer’s specific goals. The minimum employer contribution per employee is $2,500 and the state will match every dollar an employer puts in up to $5,000. MassWorks will be offered through participating banks and will be administered by MHP.

Strong interest from employers, banks

According to City of Worcester Housing Director Scott Hayman, MassWorks and the Buy Worcester Now initiative have sparked significant interest among major Worcester area employers as well as local banks and credit unions who are interested in offering the SoftSecond Loan Program. “We are very encouraged by this and poised to bring more employers and lenders on board,” said Hayman.

For more information about Buy Worcester Now, go to go to www.buyworcesternow.com.