Posted on October 3, 2017
MHP used its loan products in Fiscal Year 2017 to provide low-cost financing to Springfield property owners to help them ensure affordability and neighborhood stability for years to come.
In our continuing FY17 review, MHP’s loan activity in Springfield totaled $10.75 million in loans and commitments for the refinancing of 374 apartments, many of them impactful loans to stabilize scattered site apartments spread out across neighborhoods.
Here’s a look at MHP’s work in Springfield in the last fiscal year:
Bel Air Apartments – Using its Fannie Mae fixed-rate product, MHP provided Garden Park Management with a $2 million loan so it could refinance 40 scattered site apartments located on four streets in Springfield’s North End. Constructed in 1979, Bel-Air consists of 20 duplex buildings offering 20 three-bedroom and 20 four-bedroom homes for families, along with 80 off-street parking spaces.
Chateau Apartments – MHP used its bank-funded loan pool to provide Garden Park Management with a $2.32 million loan for the preservation of Chateau Apartments, a six-story, 65-unit triangular brick building in the Metro Center neighborhood near downtown Springfield. Constructed in 1917 and renovated in 1981, the building features seven studio, 39 one-bedroom and 19 two-bedroom apartments.
E. Henry Twiggs Estates, Phase 1 – When a lender backed out just prior to construction closing, MHP stepped up, took out its pencil, and quickly provided Better Homes Inc. with a $2.35 million permanent loan commitment from its bank-funded loan pool. The commitment – coupled with federal and state tax credits other state subsidies and bond financing from TD Bank – is enabling Better Homes to renovate 75 affordable scattered site apartments located on eight streets in the Bay and Upper Hill neighborhoods. Renovations will be done to 34 buildings of varying unit counts – single family (2), two-family (27), three-family (2), four-family (1), and six-family (1). Another building will be turned into a community center. Renovations will include new kitchens and bathrooms, new mechanical systems, roofs, insulation, siding and structural repairs. There will be a second phase consisting of 84 scattered site homes. The homes are named after E. Henry Twiggs, a Springfield City Councilor and longtime activist, public servant and civil rights leader.
Kenwyn & Quadrangle Court – MHP is helping to provide Wayfinders with $650,000 in long-term financing to help it renovate and preserve two historic buildings and 60 affordable apartments that had completed its 15-year tax-credit compliance period. The financing also included federal and state tax credits, federal historic tax credits and city funding. The permanent financing is being provided through Bank of America’s Special Bond Offering product, with MHP servicing the permanent bond when work is completed. The 101-year-old Kenwyn consists of 27 affordable apartments in two adjoining four-story buildings on Belmont Ave. The 91-year-old Quadrangle Court has 33 affordable apartments in a four-story building approximately 2.5 miles on Byers Street. Rehabilitation will include roof and window replacement, exterior repairs, kitchen and bathroom upgrades, installation of fire suppression systems, laundry room improvements and management office upgrades.
Museum Park – MHP used its Treasury Risk Share Program to provide WinnCompanies with a $2.3 million loan for the preservation of 92 affordable apartments at Museum Park, a six-story apartment building in the Quadrangle neighborhood of museums just above downtown. The refinancing will preserve the affordability of three studios, 78 one-bedroom, and 11 two-bedroom apartments for over-55 households and younger disabled households.
St. James Commons – MHP has committed $700,000 in permanent financing to support Valley Real Estate’s efforts to rehabilitate the historic St. James Commons, two 115-year-old four-story buildings in the city’s Old Hill neighborhood. MHP’s loan commitment – coupled with federal housing and historic tax credits, state tax credits and private financing from TD Bank – will help Valley Real Estate renovate 42 one-, two- and three-bedroom affordable apartments, including the 26-unit main building which was condemned in 2015 due to structural damage. Renovations will include kitchens and bathrooms, plumbing, electrical as well as general repairs and painting.
About MHP: MHP uses private bank funds and other capital sources to provide long-term financing for the creation and preservation of affordable rental housing.
Statewide in FY 2017, MHP provided over $91 million in commitments for the financing 1,600 apartments, over 1,000 of them affordable. In addition, MHP closed over $106 million in loans for the financing or refinancing of over 1,800 apartments.
For more details, check out MHP’s Multifamily Financing Interest Rate Tracker, which has terms and interest rates updated weekly for Treasury Risk Share, Fannie Mae Fixed, Fannie Mae Variable, FHA MAP and MHP Private Bank Funds.
More FY17 reviews: