WORCESTER, Mass. – The City of Worcester’s housing development division is launching two new housing programs.

The "Down Payment Assistance Program" and the "Affordable Housing Preservation Program" are both funded through American Rescue Plan Act funds. They aim to help people buy homes and stabilize rental increases. The city has committed $1 million to each new program.

City Manager Eric Batista said the expansion of the down payment assistance program should be a real benefit for families in the city.

“Historically, the city has provided up to $5,000 of down payment assistance, and now we’re increasing that to $25,000 for first-time homebuyers,” Batista said. “This is a great opportunity for families to build wealth, purchase property and be property owners here in the city of Worcester.”

The city says the affordable housing preservation program will address the public health and economic impacts of the COVID-19 pandemic on housing in the city.