MassHousing Financing Helping to Create 94 New Affordable Apartments
By Tom Farmer
Corporate Communications, MassHousing
WORCESTER – Construction is underway at the Worcester Loomworks where a vacant, blighted factory building is being converted into 94 new affordable apartments for families in Worcester's Main South neighborhood.
The Worcester Loomworks is being developed in two phases by The Community Builders (TCB) of Boston with a total development cost of $27 million.
MassHousing is providing approximately $17 million in financing for the project. The Agency recently closed on a $5.5 million tax-exempt bridge loan and a $1.3 million tax-exempt construction-permanent loan for Phase I, which involves the construction of 39 new apartments. Phase I also received $1 million from the Affordable Housing Trust Fund, which MassHousing administers on behalf of the state Department of Housing and Community Development.
MassHousing also closed on a $9.3 million taxable bridge loan and a $1.1 million taxable construction-permanent loan for Phase II, which involves the construction of 55 new apartments.
A rendering of Worcester Loomworks
Located on a 1.7-acre site at 93 Grand St. in the Main South neighborhood near Clark University, TCB purchased the five-building property from the Main South Community Development Corporation and will demolish three unusable portions of the mill and redevelop the property in a 94-unit apartment community.
"The Worcester Loomworks is an important project for the Main South neighborhood of the city," said MassHousing Executive Director Thomas R. Gleason. "A once blighted and abandoned mill is going to be transformed into a vibrant housing community for low-income residents and some families with special needs."
The 39 apartments in Phase I will consist of 19 one-bedroom apartments, 17 two-bedroom apartments and 3 three-bedroom apartments. Four of the apartments will be set aside for households with special needs.
The 55 apartments in Phase II will consist of 32 one-bedroom apartments and 23 two-bedroom apartments. Four of the apartments will be set aside for households with special needs.
"The Community Builders is proud to deepen our long-time commitment to the City of Worcester with the redevelopment of the Loomworks site," said Bart Mitchell, TCB president and CEO. "Worcester Loomworks will provide quality affordable housing for dozens of families and bring good construction jobs to the area."
Site construction is already underway and is expected to employ 175 to 200 area workers in a variety of construction trades. The development will be constructed to LEED® green building standards and will provide vital access to transportation and jobs.
The project is also receiving financing from the sale of state and federal Low-Income Housing Tax Credits, DHCD and the city of Worcester.
"There is a critical need for affordable housing in the region. This collaborative effort not only helps to address this need but also redevelops a vacant brick mill building, spurring the local economy in the process," said U.S. Representative Jim McGovern. "I am extremely happy that the federal government could be a partner in this important project."
"We are proud to fund this important development that will rehabilitate a vacant building providing the residents of Worcester with more affordable housing options," said DHCD Undersecretary Aaron Gornstein. "This Loomworks project plays an important role in the Administration's efforts to revitalize Worcester's neighborhoods."
The Worcester Loomworks development rehabilitates a long-vacant historic building constructed in 1905 as the Main Office Building of the Crompton and Knowles Loom Works, one of the largest manufacturers of heavy textile machinery in the country during the early-to-mid 20th century and is particularly significant as it is representative of the company's 20th century growth and expansion. The historic rehabilitation is slated for completion in the summer of 2015.
"This project will put a vacant building to its best use in a neighborhood ripe for revitalization," said Worcester City Manager Edward Augustus. "I want to thank The Community Builders, who continue to be a tremendous partner for the city of Worcester."
The contractor is Dellbrook Construction and the architect is The Architectural Team. The management agent will be TCB.
(Some information for this story was provided by TCB.)