MHP supports VOA with $1.9 million loan commitment
Posted on April 8, 2008
LAWRENCE --- State and local leaders gathered on Friday to celebrate the opening of the Blakeley Building, a historic building in downtown Lawrence that will provide homes for 46 low-income families.
The Massachusetts Housing Partnership (MHP) committed $1.9 million to help Volunteers of America (VOA) rehabilitate the 118-year old commercial building and also construct a new six-story building next door. The project, located at 467-479 Essex Street also includes over 4,200 square feet of retail space on the ground floor.
Blakeley Building includes 10 one-bedroom units and 36 two-bedroom units. Ten of the units have already been leased, and apartments are available now on a first-come first-served basis to those who are income eligible. Seven of the units are handicap accessible. The building is being managed by Cornu Management. For rental information, call (978) 975-0718.
The apartments are 100 percent affordable to residents earning up to 60 percent of the area median income (AMI) which in Lawrence is $43,524 for a household of three. Five units are affordable at 30 percent AMI, 21 units are affordable at 50 percent AMI, and 20 are affordable at 60 percent AMI.
The rehab and construction phase of the effort was completed in 18 months, but MHP first became involved with the effort in 2002. MHP initially provided a $3,000 technical assistance grant to hire a consultant for a feasibility analysis of the project, and then later increased the award to $10,000 to pay for additional pre-development expenditures.
VOA co-developed the project with two local developers, Richard Derosas of Paramount Development Group and Kenneth Rockett of Rockett Industries, who bought the property in 2001 and then teamed with VOA.
“There were two factors that made this deal possible,” said MHP Director of Lending David Rockwell at the April 4 opening ceremony. “Richard and Ken were willing to take risks and VOA was the perfect partner to help see the project through.”
In addition to the $1.9 million mortgage provided by MHP, the Blakeley building effort also benefited from substantial local and state support. The city of Lawrence contributed $1.5 million in HOME funds and also approved of zoning changes to allow for the development. The state contributed $550,000 in HOME funds, and awarded historic and low-income tax credits that generated $9 million to the project.
Through the years, MHP has championed many affordable housing efforts in Lawrence. Altogether, MHP has committed $19 million in mortgage financing to help create 427 new affordable units throughout the city.
Most recently, MHP committed $13.25 million in first mortgage financing to help Banc of America Community Development Corporation (BACDC) rehabilitate a historic mill building into 155 studio, one- and two-bedroom loft apartments. For more imformation about Washington Mills Lofts, click here.
MHP is a quasi-public state agency that provides long-term loans for affordable rental housing using private bank funds and at no cost to the taxpayer. This is possible due to a 1990 state law that requires companies that purchase Massachusetts banks to set aside a portion of the acquired assets to MHP. Since then, MHP's loan pool has grown to over a $1 billion and it has provided over $534 million in loans and commitments for the financing of 13,700 units of rental housing. For more information, contact MHP’s Director of Lending, David Rockwell, at 617-330-9944 x222.
For more information about the Blakeley Building, contact loan officer Megan Magrane at 617-330-9944 x269.