Posted on February 12, 2009
SHARON, Feb. 12, 2009 --- A downtown school that has been vacant for three decades will be transformed into a mixed-income development within footsteps of the commuter rail thanks in part to tax-exempt financing from MHP and MassDevelopment.
Beacon Communities is teaming with Frontier Enterprises Inc. to develop Sharon's Charles R. Wilber School into 75 rental units, 15 of which will be affordable to households earning up to 50 percent of the area median income.
Of those 15 units, the developer will set aside three for households earning up to 30 percent of the area median income. An additional seven units will be designated as workforce housing and rented to households earning up to 100 percent of the area median income.
“This project will serve as a critical economic driver for Sharon,” said Beacon Communities President Pam Goodman. “The Wilber School sat vacant for nearly 30 years before we acquired the property. Our project is a model for smart growth, transit oriented development, and we are indebted to the town, the Massachusetts Historical Commission and our many finance and development partners for their support.”
Part of the $29 million project is being financed through federal and state low-income housing tax credits and historic rehabilitation tax credits, which were purchased by AEGON USA Realty Advisors to generate over $15 million in equity financing for the project.
An additional $14 million in construction and permanent financing is being provided through a low-interest, tax-exempt bond issued by MassDevelopment, underwritten by RBC Dain Rauscher and guaranteed by Bank of America during the construction phase and by MHP upon completion and occupancy of the project. This financing enabled the developers to borrow funds at an “all-in” interest rate of 4.11 percent that is fixed for the first 12 years of the 18-year term of the loan.
“In this very difficult economic climate, this transaction shows that borrowers and lenders can still work together to create a highly effective financing structure,” said Mark Curtiss, MHP’s Managing Director. “Beacon is top-tier developer, and we are very pleased to be a part of this high quality affordable housing development.”
Built in 1922, the Wilber School was a cornerstone of community life for 60 years, first as an elementary school, then as a high school and later as a community meeting place for activities ranging from weekly movies to annual town meetings. “Restoring this historic building has been a priority of the town for many years, and it has taken the collaborative effort of many local residents, boards and committees to get us to this point,” said Richard Powell, chairman of the board of selectmen. “This project will positively impact the revitalization of our downtown area, help us to achieve our affordable housing goals, and provide critical revenue to the town.“
About MHP: MHP is a privately-funded public non-profit organization that uses funds from the banking industry to provide long-term financing for affordable rental housing. MHP funds affordable housing efforts through its Permanent Rental Financing Program (PRFP) and also offers tax-exempt bond financing in partnership with MassDevelopment through the Massachusetts Tax-exempt Credit for Housing Program (MATCH). Since 1990, MHP has provided over $610 million in loans and commitments for the financing of over 15,000 rental units. For more information about this development, contact Loan Officer Nancy McCafferty.