Audit of the Massachusetts Housing Finance Agency (October 30, 2025)

This is a state performance audit of the Massachusetts Housing Finance Agency, also called MassHousing, covering selected activities from July 1, 2022 through June 30, 2024.

“In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor has conducted a performance audit of certain activities of the Massachusetts Housing Finance Agency (MassHousing) for the period July 1, 2022 through June 30, 2024.”

Auditors checked whether MassHousing properly reviewed HUD-assisted properties, reviewed properties it financed, and tracked housing units in the 3% Priority Program.

“The purpose of our audit was to determine the following:”

MassHousing helps finance affordable housing and oversees important housing programs, so its reviews affect whether subsidized housing is safe, compliant, and available to eligible residents.

“Its primary function is to provide financing for affordable housing in Massachusetts.”

If you live in, apply for, or care about affordable housing in Massachusetts, this audit says the tested review systems worked, but tracking of some priority housing units could be improved.

“The program offers prioritized access to community-based housing, along with the necessary support services to help individuals thrive within their communities.”

Auditors did not report major findings against MassHousing, but they recommended clearer accountability, better tracking, and more focused oversight for the 3% Priority Program.

“Our audit identified weaknesses in the oversight and monitoring of the Massachusetts 3% Priority Program, in which MassHousing has voluntarily chosen to participate alongside several other government agencies.”

The most important issue is not that MassHousing failed the audit, but that the 3% Priority Program lacks clear formal oversight and real-time unit tracking, which could make referrals and accountability harder.

“This lack of formal assignment may result in unclear accountability among participating agencies and stakeholders.”

A management and occupancy review checks how a subsidized property is run and whether it meets HUD rules; an asset management review checks property condition, finances, operations, and affordability compliance.

“These reviews evaluate management practices and include a physical inspection of a property’s overall appearance, security, and compliance with HUD requirements, leasing and occupancy requirements, management and resident relations, and program accessibility.”