The state’s economic development finance agency is offering a pot of money to help eliminate blight and increase housing production in the state’s downtowns and town centers.

MassDevelopment said it is making $8 million available for its brand-new “Underutilized Properties Program.” In its first round, municipalities and their economic development partners, nonprofits and private businesses can apply for grants ranging from $50,000 to $2 million to design and fund capital improvements and code compliance projects for blighted, abandoned, vacant or otherwise underutilized properties to support increased occupancy.

Funding will be awarded in two categories, the agency said:

• Buildings: Grants for capital improvements that are essential to the occupancy or increased occupancy of existing structures. These funds may address building stabilization, roof repair, HVAC system improvements (provided that they are fully integrated elements of a building structure or site), tenant improvements and fit-out expenses and other similar purposes. Funds may also be used to facilitate compliance with building codes, fire/life safety system regulations, accessibility requirements, seismic code and other similar regulations.
• Predevelopment: Grants to engage the services of architects, engineers, landscape architects and other related professionals to assess building conditions and to develop design and construction documents for capital improvement and code compliance projects in the Buildings category.

“Every community has that one building in its downtown or town center that has been ‘stuck’ for years; the $8 million that MassDevelopment will administer is how the Baker-Polito Administration and the Legislature will help revitalize these properties,” MassDevelopment President and CEO Dan Rivera said in a statement. “Some of these properties have been blighted or vacant for decades or longer and by offering targeted assistance to communities we will help them open up new opportunities for housing or retail and set the stage for further economic development, where there has been no hope for it.”

Expressions of will be accepted between Feb. 8 and April 2; full applications will be accepted from May 3 to June 4. More information is available at the state’s Community One Stop for Growth website or via a Feb. 19 webinar.