LOW fixed interest rate. AVOID COST of private mortgage insurance. That's ONE Mortgage. LEARN MORE

First-time buyer? Check out ONE Mortgage

MHP commits $13.5M for financing of 101 rental units in suburbs

Posted on May 23, 2008

BOSTON, May 23, 2008 --- With loan commitments totaling over $14 million, the Massachusetts Housing Partnership (MHP) is helping three suburban communities in Massachusetts add 101 units of affordable housing.

In Bedford, MHP committed a permanent first mortgage loan of $1.25 million and a deferred payment second mortgage of over $1 million to help S-C Management create 14 affordable units in three townhouse apartments at 447 Concord Road.

The land is owned by the town but was disposed to S-C Management through a Comprehensive 40B permit. One of the stipulations of the permit is that 12 of the 14 two- and three-bedroom units remain affordable in perpetuity. The apartments will include two one-bedroom, eight two-bedroom, and four three-bedroom units and will be affordable to residents earning between 50 and 65 percent of the area median income, which in Bedford is between $42,900 and $55,770 for a household of four.

MHP also committed $2.1 million in a permanent first mortgage loan to help Plymouth Bay Housing Corporation create 35 new affordable units for elderly residents at 128-130 Court Street in Plymouth. Plymouth Housing Authority purchased the two parcels in 2006 from the town and then disposed it to the local non-profit PBHC for development in 2007.

The new project, which will be called Cherry Hill Apartments, will include 31 one-bedroom and four two-bedroom units, including two handicap-accessible units. The low income housing tax credits ensure that the development will be completely affordable to residents earning up to 60 percent of the area median income (AMI), which in Plymouth is $41,184 for a household of two.

In addition to tax credits, the effort has also benefited from local support. The town approved spending $1.75 million in Community Preservation Act (CPA) funds, which helped leverage additional local and state funds. Cherry Hill Apartments also received $1 million in affordable housing trust fund money, and $715,000 in state HOME funds. The Plymouth Housing Authority will manage the units.

Finally, MHP also committed $9.6 million in a permanent first-mortgage loan to help a private developer, Logan Huffman, finance 52 new, fully-occupied units on Hastings Street in Wellesley. Thirteen of the two-bedroom units at Hastings Village are affordable to residents earning up to 80 percent of the area median income, which is $54,912 for a household of two.

The homes at Hastings Village include green features which will further increase their affordability. Each unit includes Energy Star appliances and light fixtures, as well as energy-efficient windows and insulation.