Posted on September 11, 2017
A review of loans and commitments in Southeastern Massachusetts and Cape Cod in Fiscal Year 2017 illustrates MHP’s ability to support affordable housing developments at both the start and finish, while also being able to offer financing that best fit the development’s needs.
Of the nine developments and 469 apartments MHP financed in this region, three also received significant early support from MHP’s community assistance team. In addition, MHP used all of its financing sources to support developments in this region – its bank-funded loan pool, Fannie Mae, Treasury Risk Share for preservation and Treasury Risk Share for new construction with a forward rate lock commitment.
Here’s a capsule look at MHP support in the southern part of the state and the Cape in FY2017.
Dennis – MHP used its bank-funded loan pool to close a $1 million permanent loan for Melpet Farm, capping years of involvement in which MHP helped the town realize its vision for the site. Fondly remembered as a place to ride horses and where the children’s television show “Boomtown” was filmed, the town bought the land in 2001 and gifted it to the housing authority for the purpose of preserving the farm and rehabilitating 14 apartments. This notion eventually ran aground amid newspaper reports of cost overruns, no-bid contracts and work not being done.
Enter MHP. Over several years, its community assistance team worked with the town and funded a predevelopment processs which recommended that the existing units be torn down and 27 units be built in its place. MHP also provided legal support to help the town regain site control and deal separately with a foreclosing lender. The resulting project was co-developed by the Housing Assistance Corp. of Cape Cod and the Preservation of Affordable Housing. “It was a miserable experience. We convinced voters to do it, then it fell apart," said Paul McCormick, a longtime selectman. "MHP helped us rebuild trust and put us on a path that would work.”
Fall River – To help address the need for senior housing, MHP has committed $1.8 million in permanent financing from its bank-funded loan pool to help Liberty Affordable Housing Inc. transform the five-story granite Knitting Mill into 100 affordable senior apartments. When complete, the new housing will feature 74 one- and 26 two-bedroom affordable apartments, with 16 of the units set aside for extremely low-income seniors at or below 30 percent of area median income.
Hyannis – MHP continued its support of affordable housing for the Cape’s year-round workers with a $2.1 million permanent loan commitment for Village Green Phase II, a 60-apartment affordable housing development being built by Dakota Partners. This follows a $2.6 million permanent loan MHP provided for Village Green Phase 1, which was also 60 units. Both phases are located alongside Route 6 just east of exit 6 and the Cape Cod Mall. Both phases received Ch. 40B comprehensive land use permits from the Town of Barnstable, with the state Department of Housing and Community Development serving as the subsidizing agency and primary funder through the award of federal low income housing tax credits.
Middleboro – Keeping a town’s memories alive while providing affordable apartments was the theme at last year’s grand opening of Shoe Shop Place. Developed by two nonprofits – The Neighborhood Corporation of Taunton and the Neighborhood of Affordable Housing (NOAH) – Shoe Shop features 25 apartments affordable to households at or below 60 percent of median income. Equally important, the blend of public and private financing – including a $1.6 million MHP loan – turned an abandoned factory back into a useful asset for the community. “My mother used to work here so it’s great to see how it’s been converted from an eyesore into affordable housing,” said Diane Stewart, chair of the Middleboro Board of Selectmen.
New Bedford – Trinity Financial’ s efforts to revitalize Regency Tower continued this past year as MHP closed on an $8.5 million Fannie Mae loan. This enabled the developer to refinance 96 market-rate and workforce rental apartments with longer-term, fixed-rate financing. Trinity’s involvement in downtown New Bedford’s tallest building dates back 10 years when it stepped forward and purchased the 14-story building, which was on the brink of foreclosure and in need of repairs. Working with the city, Trinity used a blend of public and private financing to rehabilitate the property into 96-mixed-income apartments and 33 affordable apartments for households at or below 50 percent of area median income.
North Attleboro – MHP committed $2.4 million in financing from its bank-funded loan pool to support Great Bridge Properties’ plan to redevelop the former Jewled Cross factory on the edge of downtown into 66 affordable apartments. Great Bridge plans to build two new buildings on the site and preserve the factory’s historic colonial office as a management office, laundry and meeting space.
Taunton – Using low-interest, 40-year financing from its Treasury Risk Share Program, MHP committed $4.2 million in financing to support the nonprofit Affordable Housing Services Collaborative’ s acquisition of Robertson on the River from nonprofit The Neighborhood Corporation. A nonprofit company established by Peabody Properties, AHSC will use the financing to stabilize this renovated mill, which consists of 64 affordable apartments and six commercial spaces.
Wellfleet – MHP committed $591,000 in permanent financing to support six mixed-income apartments, capping several years of work in which MHP worked with the town and a $21,000 state grant to identify town parcels for affordable housing. Called Gull Pond Road, the 2.3 acre site was taken by tax title, transferred to the housing authority and then sold to Community Housing Resources of Provincetown. The development will consist of three two-family townhouses with two apartments affordable at or below 30 percent of area median income, two at or below 60 percent AMI and two at or below 100 percent AMI.
Westport – Noquochoke Village is another example of MHP’s ability to support housing from start to finish. After the town bought the property with Community Preservation Act funds, MHP’s community assistance team helped the town assess the site’s suitability for development and then helped the town craft a Request for Proposal that sought a developer. The town selected The Community Builders, which is developing 50 affordable one-, two- and three-bedroom apartments on the seven-acre site. MHP has committed $1.4 million in long-term (40 year) permanent fixed-financing with a forward rate commitment from its Treasury Risk Share Program.
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: