Posted on August 10, 2017
BOSTON --- While the obvious signs of the City of Boston’s march to adding 53,000 new units by 2030 are luxury apartments going up at the Seaport and downtown, these tall buildings should not overshadow the new affordable housing that’s being developed in the neighborhoods, often with financing from MHP.
In Fiscal Year 2017, MHP used its private bank funds and other capital sources to provide almost $22 million in loans and commitments for the financing of eight developments. Paired in each case with low-income housing tax credits and other funding from the Baker Administration and the state Department of Housing and Community Development, MHP financing helped support 428 apartments, all of them affordable and all of them in neighborhoods that are experiencing or are wary of rising prices and gentrification.
MHP’s performance in FY17 pushes its lending totals in Boston to $340 million in support of over 7,000 apartments. The list of commitments and closings in FY17 include:
Brighton – MHP is providing the Jewish Community Housing for the Elderly (JCHE) with a $2.25 million 40-year fixed-rate loan commitment to support the new construction of Weinberg House, 61 affordable apartments for seniors at JCHE’s 700-unit Brighton campus. The addition – to be connected to the main building by a walk way – broke ground on July 21.
Charlestown – A $3.9 million MHP long-term loan helped the nonprofit Toward Independent Living and Learning Inc. (TILL) continue its mission of housing people with disabilities within the community. MHP helped support the development of a five-story building with 61 affordable apartments next to Bunker Hill Community College’s athletic fields. All units are affordable below 60 percent of area median income, six are for households below 30 percent of median income, five have been set aside for residents receiving mental health services and three are for households with a physically disabled family member.
Chinatown – MHP used its bank-funded loan pool to support the Asian Community Development Corporation’s (ACDC) longtime effort to rebuild a neighborhood that was razed in the 1960s to make way for the Southeast Expressway. The development – called 66 Hudson at One Greenway – consists of 217 market-rate apartments developed by the New Boston Fund and 95 affordable apartments developed by ACDC. MHP provided a $4.35 long-term loan to support ACDC’s ongoing efforts to provide affordable homes in this fast-gentrifying part of the city.
Dorchester - MHP provided technical assistance and a $3 million loan to the Codman Square Neighborhood Development Corp. for Whittier-Lyndhurst-Washington (WLW). WLW involved the purchase and rehab of a distressed, highly visible, nine-unit brick building at Lyndhurst and Washington streets in the Codman Square business district, the development of eight units on a vacant lot at 472 Washington St., the development of three new buildings and 13 units on two vacant lots at Darlington Street and Southern Ave., and the acquisition and rehabilitation of 14 public housing units at the former Whittier School on Southern Ave. Formerly public housing, MHP evaluated the physical and financial condition of Whittier for the state and recommended that the property be preserved in conjunction with the development of the adjacent vacant lots.
East Boston – A $1.3 million MHP loan commitment is supporting East Boston Community Development Corporation’s efforts to build Paris Village Phase 1, a 32-unit apartment building on part of the former Salesian Society School Grounds. This development, which broke ground on Aug. 9, is notable for its focus on family housing as it will offer 21 two- and 11 three-bedroom apartments, all affordable at or below 60 percent of area median income.
Mission Hill (Parcel 25) – MHP used its private bank funds to provide a $2.9 million loan commitment to Mission Hill Neighborhood Housing Services to help support the 40-apartment housing portion of a mixed-use development on a vacant former MBTA parcel across from the Roxbury Crossing MBTA station. The development will also include first-floor retail – including an Eastern Bank branch – and second-floor commercial space that will be the new headquarters of the Metropolitan Boston Housing Partnership, the state’s largest provider of housing subsidies and support services.
Mission Hill (Mosaic on the Riverway) – Similar to 66 Hudson at One Greenway, Mosaic involves the construction of a mixed-income 11-story apartment and condominium building in the Longwood Medical Area. Developed by the nonprofit Roxbury Tenants at Harvard Association, the development consists of 60 affordable apartments on floors two through five, and 85 mixed-income condominiums on the upper floors, 42 of them affordable. MHP provided a $2.1 million loan for the affordable rental portion of the project. In addition, 22 first-time homebuyers bought condos with MHP’s ONE Mortgage Program for first-time buyers.
Roxbury – MHP provided technical assistance and committed $2.1 million in long-term financing to Urban Edge for the construction of Walker Park. The development involves the redevelopment of two parcels in Egleston Square into 49 new affordable apartments. In addition, MHP’s community assistance team provided a $25,000 grant and significant staff time to work with Urban Edge, the city and development team on using lean design techniques, which emphasize collaboration, reliable workflows and resource efficiencies to hold down construction costs. The effort supported a 20 percent reduction in construction costs at construction document stage compared to similar units.
MHP uses private bank funds and other capital sources to provide long-term financing for the creation and preservation of affordable rental housing. Statewide in FY 2017, MHP provided over $90 million in commitments for the financing 1,600 apartments, over 1,000 of them affordable. In addition, MHP closed over $106 million in loans for the financing or refinancing of over 1,800 apartments.
For more details, check out MHP’s Multifamily Financing Interest Rate Tracker, which has terms and interest rates updated weekly for Treasury Risk Share, Fannie Mae Fixed, Fannie Mae Variable, FHA MAP and MHP Private Bank Funds.