Posted on June 22, 2004
MHP has made a $1.5 million loan commitment for the renovation of a Springfield apartment building into 92 units of rental housing for residents of 55 years and older.
The effort involves the purchase and conversion of 133 condominium units into 92 units of affordable rental housing for low and moderate-income elderly and near-elderly residents in downtown Springfield. Built in 1927, the six-story building was originally known as the Ashford Hotel and has been renamed Museum Park.
Winn Development, the project developer, will also receive $5.4 million from the proceeds of the sale of low-income housing tax credits and additional funding from the Department of Housing and Community Development, and the City of Springfield.
“This effort will provide much-needed affordable housing in a historic downtown neighborhood that the city has been working hard to revitalize,” said Clark Ziegler, MHP’s executive director.
Winn is converting the condominiums into two studios, 78 one-bedroom units and 12 two-bedroom units. All units will be affordable to residents at or below 60 percent of median income. Projected monthly rents are $403 for a studio, $508 to $626 for a one-bedroom, and $644 to $751 for a two-bedroom.
“Museum Park enjoys tremendous support from both the city housing office and the surrounding community,” said Larry Curtis, managing partner for WinnDevelopment. “It will serve to provide quality, safe and affordable living opportunities for the near-elderly and elderly as well as to further the revitalization efforts that downtown is currently undergoing.”
MHP will be making its $1.5 million loan from its Permanent Rental Financing Program, which provides long-term loans of up to $15 million for multi-family and single-room occupancy housing.
MHP is a statewide public/non-profit affordable organization that uses private bank funds to provide long-term loans for affordable rental housing. MHP focuses these funds on rental developments that are generally smaller in scale, supported by the communities and serve lower-income people. In Springfield, MHP has made over $13 million in loans and has financed nearly 1000 rental units since 1993.
Bank transactions like the recent Bank of America-Fleet deal trigger the statute that funds MHP. MHP recently reached an agreement with Bank of America on a $406 million loan and an $18 million cash grant. For more information about MHP’s rental financing programs, go to www.mhp.net.