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MHP commits $650,000 to construct 22 units

Posted on September 28, 2011

WORCESTER, Sept. 28, 2011 --- The Massachusetts Housing Partnership (MHP) recently committed $650,000 in financing to help non-profit development Main South Community Development Corporation (Main South CDC) construct 22 units of affordable rental housing in the Main South neighborhood of Worcester.

The Kilby Gardner Hammond Phase IV project will consist of the new construction of seven buildings containing 22 units of affordable rental housing. The apartment make-up is six two-bedroom units and 16 three-bedroom units. All of the units will be made affordable to residents earning at or below 60 percent of the area median income (AMI) with five of those units affordable to residents earning at or below 50 percent AMI. The site will also include 40 parking spaces.

Besides MHP's permanent financing, the Kilby Gardner Hammond Project Phase IV has received over $3 million in equity through the syndication of Low Income Housing Tax Credits (LIHTC) awarded by the state Department of Housing and Community Development (DHCD) as well as $2.2 million from other DHCD funding programs. The project also received $670,000 in HOME funds from the City of Worcester.

MHP has committed $400,000 in permanent rental financing as a well as a HomeFunders second mortgage of $250,000 towards this projects. This is the sixth Main South CDC project that MHP has committed financing towards. Including this project, MHP has committed over $2.9 million in financing to help Main South CDC create 87 units of affordable rental housing in Worcester.

ABOUT MHP: MHP is a privately-funded, public non-profit affordable housing organization that uses private bank funds to provide long-term permanent loans for affordable rental housing development due to a 1990 state law that requires banks that purchase other banks to make funds available to MHP. Since 1990, MHP's loan pool has grown to over $1.1 billion and it has provided over $697 million in loans and commitments for the financing of over 17,000 rental units. For more information about this development, contact Senior Loan Officer Amanda Roe at 617-330-9944 x273.