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Greylock Federal joins MassHousing's accessory dwelling unit loan program

Greylock Federal joins MassHousing's accessory dwelling unit loan program

Money Moves Boston, MA local

The Pittsfield credit union is the ninth lender in the state's program financing backyard cottages and basement apartments

September 1st, 2026: Greylock joins MassHousing ADU program

Overview

Updated Sep 3

Massachusetts needs at least 222,000 new homes over the next decade. Accessory dwelling units (backyard cottages, converted basements, over-garage apartments) are one way to add them without new land or large-scale construction.

Greylock Federal Credit Union, based in Pittsfield, has joined MassHousing's Accessory Dwelling Unit Loan Program. The credit union says it's the first Berkshire County lender in the program, which pairs interest-bearing loans with zero-interest deferred financing for income-eligible homeowners.

Why it matters

If ADU lending scales, Massachusetts homeowners gain a new way to add housing and rental income without new land or large developments.

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Key Indicators

9
Lenders in MassHousing's ADU program
Greylock is the ninth financial institution to sign up since the program launched in 2025.
$250K
Maximum loan for a detached ADU
The program lends up to $250,000 for detached units and $150,000 for attached ones.
222,000
New homes Massachusetts needs in a decade
State analysis projects at least 222,000 new homes needed over the next decade.

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People Involved

MF
Myla Franklin
Community Lending Officer at Greylock Federal Credit Union
Leading outreach for Greylock's ADU program; teaching September 2026 classes
TM
Tara McCluskey
Vice President of Mortgage Origination at Greylock Federal Credit Union
Oversees Greylock's ADU loan program
LB
Laura Brown
Mortgage Underwriting Manager at Greylock Federal Credit Union
Manages underwriting for Greylock's ADU loans

Organizations Involved

MassHousing
MassHousing
State housing agency
Administers the Accessory Dwelling Unit Loan Program

MassHousing is Massachusetts' affordable housing finance agency, created in 1966 to provide capital for affordable rental housing and homeownership.
Greylock Federal Credit Union
Greylock Federal Credit Union
Credit union
Ninth lender in MassHousing's ADU program; first from Berkshire County

Greylock Federal Credit Union is a member-owned credit union based in Pittsfield, Massachusetts, serving Berkshire County and nearby New York communities.
Executive Office of Housing and Livable Communities
Executive Office of Housing and Livable Communities
State agency
State housing policy agency; produced the 222,000-home analysis

The Executive Office of Housing and Livable Communities is Massachusetts' housing policy agency, overseeing housing production and community development.

Timeline

August 2024 September 2026

4 events Latest: September 1st, 2026 · 2 months ago
Tap a bar to jump to that date

  1. Greylock joins MassHousing ADU program

    Latest Partnership

    Greylock Federal becomes the ninth lender and first Berkshire County institution in MassHousing's Accessory Dwelling Unit Loan Program.

  2. Greylock launches its own ADU loan product

    Product Launch

    Greylock Federal Credit Union introduces an ADU loan program for Berkshire County homeowners, ahead of joining the MassHousing network.

  3. MassHousing launches ADU loan program

    Program Launch

    MassHousing starts its Accessory Dwelling Unit Loan Program, offering income-eligible homeowners financing for attached and detached units. Exact launch date in 2025 not specified.

  4. Massachusetts legalizes ADUs by right

    Rule Change

    Governor Maura Healey signs the Affordable Homes Act, allowing accessory dwelling units by right in single-family residential zones.

Scenarios

1

ADU lending scales across Massachusetts

Possible Resolves by End of 2027

Discussed by: Greylock's Myla Franklin, who cites the state's 222,000-home shortfall and calls ADUs a pathway for housing

More lenders join the program, loan volume grows, and ADU construction becomes a measurable part of the state's housing supply. Greylock's Berkshire County outreach, including its September 2026 classes, could build a pipeline of homeowners with permits and contractor contracts ready to build.

2

Program stalls on permits and contractors

Possible Resolves by End of 2027

Discussed by: Greylock's Laura Brown, who described the permitting and approval process as a 'learning curve'

The program requires homeowners to have plans, permits, and a contractor contract in hand before applying. If few homeowners clear those pre-development hurdles, loan closings stay low despite lender interest.

3

State expands ADU financing

Unlikely Resolves by Jul 31, 2027

Discussed by: Greylock's Laura Brown, who said she hopes to see more avenues open for ADU financing

Demand outpaces the program's current structure, and Massachusetts raises loan limits, adds funding, or relaxes eligibility rules. The state could also extend financing to cover pre-development costs like permits and design work.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2017-2022

California's ADU boom (2017-2022)

California passed laws in 2017 and 2019 making accessory dwelling units legal by right in most residential zones, overriding local restrictions. ADU permits grew from roughly 1,200 in 2016 to more than 20,000 in 2022.

Then

ADUs became a major source of new housing in California, especially in coastal cities where land is scarce.

Now

California's by-right model became the template for other states, including Massachusetts.

Why this matters now

Massachusetts copied California's by-right approach in 2024. California's trajectory shows the potential scale, but also that financing and construction costs are the next hurdle after zoning.

2010-2016

Portland's ADU fee waiver (2010-2016)

Portland waived system development charges for ADUs starting in 2010, cutting the cost of adding a unit by thousands of dollars. Annual ADU permits rose from about 100 to more than 800 by 2016.

Then

Portland became an early US leader in ADU construction, adding thousands of units.

Now

The city reinstated some fees as the program matured, showing how financial incentives can be adjusted.

Why this matters now

Portland shows how removing cost barriers changes construction volumes. Massachusetts is using a different lever: cheaper capital through state-backed loans.

Sources

(5)
Banker & Tradesman CUInsight Greylock Federal Credit Union Greylock Insurance Agency MassHousing