Posted on May 22, 2007
BOSTON --- By providing technical assistance and a commitment of over $1.7 million in financing, the Massachusetts Housing Partnership (MHP) is helping the Valley Community Development Corporation (VCDC) create 19 affordable housing units in two western Massachusetts towns.
In Northampton, MHP has committed $100,000 in first-mortgage financing and a $600,000 deferred-payment second mortgage to rehabilitate a four-unit building and add a new two-story addition. The eight units are located at 46-48 School Street and include apartments ranging from studios to three-bedroom family units.
Meanwhile, in nearby Amherst, MHP has committed $268,000 in first-mortgage financing and a $750,000 deferred-payment second mortgage to help finance the new construction of 11 affordable units on land that the Amherst Housing Authority acquired with help from $250,000 in Community Preservation Act (CPA) funds.
The development in Amherst is a joint effort between the Valley CDC and the Amherst Affordable Housing Associates. The Amherst Housing Authority (AHA) has leased the land to VCDC and will serve as the property managers. Located on a 4.2 acre site on Main Street, the apartments will include four one-bedroom units, five two-bedroom units, and two three-bedroom units.
All 19 units in both towns will be affordable to residents earning 65 percent of the area median income, which in Northampton and Amherst is $40,885 for a family of four.
In 2005, Valley CDC received a three-year capacity grant from MHP in an effort to increase its ability to produce affordable housing. With the help from MHP, VCDC hired consultants to seek new development opportunities and they also created a five-year housing plan to outline a development strategy. To meet its goals, VCDC plans to develop one small project yearly and to partner with another organization on larger-scale developments every few years.
The Valley CDC has created over 80 units of affordable rental housing in the Pioneer Valley since it was formed in 1988. All told, MHP has helped VCDC finance three housing efforts, and this is the second effort that MHP has helped finance in Northampton. In 2002, MHP provided over $1.8 million to help VCDC finance 24 affordable units in Northampton, known as Valley Millbank Apartments.
The Amherst Main Street effort is the latest example of MHP’s commitment to small-scale affordable development. For several years, MHP’s Community Housing Initiatives (CHI) team has worked with the Amherst Housing Authority to identify opportunities to create affordable housing on unused town land.
In the Main Street effort, MHP worked with the housing authority to identify the land for development. MHP helped the AHA write a Request for Proposals (RFP) to find a non-profit developer, and then helped the AHA select Valley CDC and dispose the land to them to build 11 affordable units.
This is the second effort that the Amherst Housing Authority has produced with assistance from MHP. In 2006 the AHA celebrated the opening of eight affordable units developed with help from technical assistance by MHP’s CHI team. MHP then stepped in to provide $985,000 in permanent financing for the deal. Click here for more information on the Keet-Tamarack effort.
For more information, contact Callie Clark at (617) 330-9944 x336.