At its last two meetings—in December and January—MassHousing’s board of directors approved a total of three loan commitments through the Agency’s Section 8 Preventative Preservation Program. Totaling more than $37 million, the commitments ensure that 403 units of rental housing will remain affordable for at least 15 years; all of the units were at risk of converting to market rates when the original mortgages matured in 2012 and 2013.
The properties involved were 202-unit Ocean Shores in Lynn, which received $19.5 million; the 161-unit Chelsea Village in Chelsea, which received $14.6 million; and the 40-unit Beachmont Apartments in Revere, which received $3.2 million.
The Section 8 Preventative Preservation Program is a unique tool that has helped MassHousing extend the affordability at a number of Section 8 developments in the Agency's portfolio. The program targets properties whose loans mature between 2010 and 2015. In exchange for a variety of financial incentives, property owners agree to renew Section 8 HAP contracts, thus preserving a valuable affordable rental option for many years to come.