Massachusetts expands "1 Plus" homebuyer program in Lynn with $11 million launch

Governor Maura Healey and Lieutenant Governor Kim Driscoll joined state officials, philanthropic leaders and bank partners in Lynn to announce an expansion of the 1 Plus mortgage program intended to make homeownership more attainable in gateway cities across Massachusetts.

The administration said the launch is supported by an initial combined investment of $11,000,000 and by commitments from philanthropic and private lenders, and will deliver down-payment and closing-cost assistance, interest-rate buydowns and post-purchase counseling. "It will help with down payments and other costs totaling up to $50,000 for each participant," the governor said, describing the program as a tool to unlock homeownership in 29 cities and towns, including 26 gateway cities.

The program builds on legislation and bond funding advanced by the state. The governor referenced the Affordable Homes Act and a $5,000,000,000 housing bond enacted this year as part of broader efforts to increase housing production and affordability.

Lee Pelton, president of the Boston Foundation, said the foundation has set a fundraising floor of $25,000,000 for the broader initiative and framed the effort as part of closing the racial wealth gap. "Our $25,000,000 investment is a floor, not a ceiling," Pelton said. He estimated that targeted investments of that scale could generate substantial household equity gains over time.

Bob Rivers of Eastern Bank said the Eastern Bank Foundation is committing $4,000,000 to the effort and called on other financial firms and foundations to join. "We encourage other companies and other foundations, other funders to participate," Rivers said, noting Eastern Bank's history of local lending and philanthropy.

Ed Augustus, the state secretary of housing, said the MassHousing Partnership (MHP) will be the program partner responsible for implementation. Augustus said officials estimate the initial investment will deliver home-equity benefits for roughly 500 underserved low-income and minority households and emphasized that the program packages multiple supports — down-payment aid, closing-cost help and counseling — to reduce barriers to sustainable ownership.

Clark Ziegler of the MassHousing Partnership laid out product details: down-payment assistance and closing-cost grants, a 30-year fixed rate mortgage product with an interest-rate buydown "more than a full percentage point for the life of the loan," no mortgage-insurance requirement for the product, and robust post-purchase counseling coordinated with nonprofit partners to reduce default risk and support long-term success.

David Giles, a homeowner who benefited from predecessor programs, described how counseling and down-payment assistance enabled him to buy a home and build stability. His testimony was offered as a concrete example of how the program's combination of financial and counseling supports can change outcomes for individual families.

Officials said the 1 Plus expansion is intended to pair public funds, philanthropic grants and private-lender participation to stretch limited public dollars and increase the number of sustainable homebuyers in communities that have faced long-standing disinvestment. Organizers encouraged interested buyers and potential funders to learn more through program materials available at the event.

No formal votes or policy actions were taken at the event; officials described the announcement as a program launch and outreach opportunity and identified MHP as the implementing partner responsible for operational details and rollout to participating communities.