MassHousing Blog

Renovations Completed for Senior Citizens and Disabled Residents at Central Annex and Union Court in Pittsfield

Tim Sullivan, MassHousing's Deputy Director for Finance and Rental Programs, speaks at the Central Annex Ribbon-Cutting

Preservation of Affordable Housing (POAH) has completed extensive renovations at the 101-unit Central Annex/Union Court in Pittsfield while also preserving affordability for senior citizens and disabled residents there for the long term.

MassHousing provided $8.9 million in financing for the $16 million project, including a $5.4 million construction and permanent loan and a $3.5 million bridge loan. An additional $1.75 million was provided from the Affordable Housing Trust Fund, which MassHousing manages on behalf of the state Department of Housing and Community Development.

Central Annex encompasses two low-rise brick buildings. The first, on Second Avenue, was built as the Central High School in 1898. The other, located on Union Street, started as the Berkshire Hotel in 1905. In 1979, both buildings were converted into housing with MassHousing financing and both are listed on the National Register of Historic Places.

POAH has renewed the Section 8 Housing Assistance Payment contract on all 101 apartments, which will keep them affordable for nearly 30 years.

"It's a gem of a property. We will be here for the long term," said POAH CEO Aaron Gornstein at a Sept. 28 event to celebrate the completion of renovations. Gornstein noted that had POAH not purchased the housing in 2007 and extended the Section 8 contract the affordable apartments would have been at risk of converting to market rates.

POAH made substantial renovations to the property, including upgrades to plumbing, HVAC and fire safety systems, as well as kitchens, bathrooms and elevators. The property also received a new roof and limited masonry repointing.

"Central Annex is a beautiful property that will continue to provide affordable homes to senior citizens and disabled residents in Pittsfield," said Tim Sullivan, MassHousing's Deputy Director for Finance and Rental Programs. "We were very pleased to be able to work with POAH to help renovate the property and make sure it remains as an important affordable housing resource for the residents who live there."

Other funding for the development was provided by DHCD and equity from the sale of Low Income Housing Tax Credits.

The contractor was Keith Construction, Inc. and the architect was Guzman Prufer, Inc. The management agent is POAH.

New MassHousing Loan Program for Owners of Rental Housing Communities Offers Low Interest Rates While Helping to Preserve Hundreds of Affordable Apartments for Low-Income Senior Citizens and Families

Agency's MAP/Ginnie Mae initiative has generated $77.5 million in financing and extended affordability for 817 apartments in Fairhaven, Fall River, Lowell and New Bedford

MassHousing is offering a new loan program for the owners of rental housing communities that provides lower interest rates and a faster review process while preserving and extending affordability for hundreds of low-income senior citizens and families.

To date, MassHousing has closed four refinance loans through the U.S. Department of Housing and Urban Development's (HUD) Multifamily Accelerated Processing (MAP)/Ginnie Mae Mortgage Backed Securities (MBS) program.

The loans, totaling $77.5 million in financing and involving 817 affordable housing units, were made to affiliates of EAF Associates, Inc. for affordable housing communities in Fairhaven, Fall River, Lowell and New Bedford. MassHousing has 12 additional MAP/Ginnie Mae loans in its lending pipeline worth more than $179 million.

"This is exactly the type of loan product our multifamily property borrowers are looking for in this market," said MassHousing Executive Director Thomas R. Gleason. "Our MAP/Ginnie Mae product offers great interest rates and a faster closing process from a steady lending partner. We see the MAP/Ginnie Mae platform as being a great tool for us in preserving and extending housing affordability for Massachusetts residents in the years to come."

MassHousing has partnered with two well-known and experienced private-sector HUD-approved MAP lenders: CBRE and Rockport Mortgage Corporation. The MAP lenders prepare the submission of each transaction for HUD's approval. MassHousing then closes the new loan and issues the Ginnie Mae MBS, which has consistently provided the multifamily mortgage industry its most competitive long term, taxable interest rates. The average loan interest rate for these joint-venture transactions to date is 3.4%.

With each MAP/Ginnie Mae loan, MassHousing continues as the mortgagee of record and becomes a Ginnie Mae servicer. This ensures affordability, as each completed transaction will require the property owner to rent at least 20% of the units to those earning less than 80% of the area median income. Affordability at many properties could be at risk were MassHousing unable to offer this product, as owners could refinance with other lenders who do not require affordability restrictions.

The first four MAP/Ginnie Mae transactions were closed as a result of MassHousing's joint venture with Rockport Mortgage Corporation and the four housing communities where affordability for residents was preserved and extended are:

Fairhaven Village

Fairhaven Village: Built in 1981, Fairhaven Village is a senior and family community of 169 apartment homes located on Main Street in Fairhaven and comprised of four buildings made up of a four-story building, a five-story building, a townhome and a cottage. As a result of $14.8 million in MassHousing financing, the owner is in the process of extending the HUD Section 8 Housing Assistance Payment contract on all 169 units for another 20 years.

 

Borden Street Place

Borden Street Place East and West: Built in 1981, Borden Place East and West is a community of 261 apartment homes located on Borden Street and South Main Street in Fall River and predominately designed for seniors over age 62 as well as persons with disabilities who are under age 62. As a result of $25.8 million in MassHousing financing the owner has extended the HAP contract on all 261 apartments for 20 years.

 

Market Mill

 

Market Mill: Built in 1981, Market Mill is a senior and family community of 230 apartment homes in two five-story buildings located on Market Street in Lowell . As a result of $24 million in MassHousing financing, the owner has extended the HAP contract on all 230 units for 20 years.

 

Bedford Towers

 

Bedford Towers: Built in 1977, Bedford Towers is a senior and family community of 157 apartment homes located on Middle Street in New Bedford in a seven-story building with seven townhomes. As a result of $12.9 million in MassHousing financing the owner has extended the HAP contract on 156 units for 20 years. One unit is occupied by a property manager.

"We are gratified to have the opportunity to use this new MassHousing MAP financing program to take advantage of these historically low interest rates to fund improvements and preserve these properties as affordable housing for the future,” said EAF Associates, Inc. President James Sullivan.

Belmont Savings Bank is now a MassHousing Approved Lender

Middlesex County-based lender can now offer MassHousing's affordable home loans

Belmont Savings Bank is now an approved lender of MassHousing's affordable, fixed-rate, home loan products for low- and moderate-income homebuyers.

Headquartered in Belmont, Belmont Savings Bank also has branches in Cambridge, Newton, Waltham and Watertown.

As a MassHousing-approved lender, Belmont Savings Bank will be able to originate MassHousing's home mortgage loans for income-eligible homebuyers. These loans have low down payment options and competitive 30-year fixed interest rates.

"Belmont Savings Bank has been providing quality mortgage products for many years and now, by offering MassHousing's suite of loan products, they will be able to better serve low- and moderate-income borrowers in Massachusetts who want to purchase or refinance a home," said MassHousing Executive Director Thomas R. Gleason.

Borrowers who put less than 20% down on a home receive MassHousing's MI Plus™, an enhanced mortgage insurance policy that helps pay the borrower's mortgage for up to six months in the event they lose their job.

MassHousing also has Lender Paid Mortgage Insurance and no mortgage insurance mortgage options. Borrowers can put down as little as 3% of the home purchase price as a down payment on single-family homes and condominiums and as little as 5% down on two, three and four-family properties.

"Partnering with MassHousing fits perfectly within our mission as a community bank, providing our existing customers with sound and affordable housing options," said Bob Mahoney, President and CEO of Belmont Savings Bank. "Additionally, this partnership demonstrates to new customers, and their families, about the value of banking with Belmont Savings, and we look forward to continuing to offer quality mortgage products to an increased pool of Massachusetts residents.”"

MassHousing Homeownership Lending Off to Strong Start in Fiscal Year 2016

MassHousing's homeownership lending is off to a strong start as the Agency posted nearly $190 million in mortgage loans to low- and moderate-income homebuyers and homeowners in the first quarter of Fiscal Year 2016, which ended September 30. This volume helped 772 families purchase a home and another 62 refinance their homes for a lower interest rate and monthly payment.

Working with MassHousing's partner lenders, loans were made in 194 cities and towns across the state.

At a time when borrowers between the ages of 21 and 35 are said to be struggling to buy a home 62% of MassHousing's borrowers are members of the millennial generation.

MassHousing recorded $189.8 million in home mortgage loans, which offer consumers competitive 30-year, fixed-rates with low down payment options. Lenders and consumers have come to identify MassHousing as a reliable source of safe, affordable, and sustainable home loans for first time homebuyers.

Learn more about MassHousing's affordable products and resources for homebuyers and homeowners.

Families at Chauncy House Apartments Will See Affordability Preserved and Property Renovations as a Result of $16.4 Million in MassHousing Financing

88-unit housing community in Boston's Chinatown will receive extensive building and interior improvements

Families living at the 88-unit Chauncy House Apartments in Boston's Chinatown will see the extension of affordability and significant property improvements  with the closing of $16.4 million in MassHousing financing.

Chauncy House is owned by an affiliate of The Community Builders (TCB) of Boston. TCB is using the MassHousing financing to renovate the property, where all the apartments are affordable to lower-income families through the use of HUD Section 8 Housing Assistance Payment vouchers. As a result of the MassHousing financing the Section 8 subsidy will be extended at least 15 years.

"To be able to preserve 88 affordable apartments in Chinatown is great news for the residents of Chauncy House and the neighborhood," said MassHousing Executive Director Thomas R. Gleason. "The Community Builders was committed to not only keeping Chauncy House as a valuable affordable housing resource but also in making some major property improvements for the residents."

Chauncy House was built in 1922 as the Wendell Phillips Building and was converted from offices to housing in 1973 through HUD's Section 236 Program. The 12-story building is listed in the National Register of Historic Places. It contains 22 studio and 66 one-bedroom apartments. The building also contains 3,400 square feet of commercial space on the ground floor as well as a community room for the residents.

A number of improvements are planned including replacement of all windows, upgrades to kitchens and bathrooms, improved ventilation, replacement of the fire alarm system, replacement of domestic hot water storage tanks and elevator upgrades. The building façade is richly ornamented glazed terra-cotta and will be power washed, patched and repaired. Additionally, five apartments will be upgraded to be fully accessible.

MassHousing's financing includes a $9.2 million construction and permanent loan, and a $7.2 million bridge loan. Other financing sources for the transaction were the use of state and federal Historic Tax Credits and federal Low-Income Housing Tax Credits.

The contractor is Bilt-Rite Construction. The architect is The Architectural Team and the management agent is The Community Builders.

MassHousing's Tom Gleason Reelected President of NCSHA Board of Directors

MassHousing Executive Director Tom Gleason has been reelected as President of the National Council of State Housing Agencies (NCSHA) Board of Directors.

NCSHA is a nonprofit, nonpartisan organization created by the nation's state Housing Finance Agencies (HFAs) more than 30 years ago to coordinate and leverage their federal advocacy efforts for affordable housing. NCSHA represents its members in Washington before Congress, the Administration, and the several federal agencies concerned with housing, including the Department of Housing and Urban Development, the Department of Agriculture, and the Treasury, and with other advocates for affordable housing.

"NCSHA is a great organization that advocates for the nation's Housing Finance Agencies, which form the backbone of lending for affordable housing across America," said Gleason. "I am honored to be reelected by my fellow Directors as President of this highly effective national organization and we will continue to work to develop new and innovative ways to finance single-family and multi-family housing for low and moderate-income Americans."

Gleason, whose career in affordable housing spans more than 37 years, has been Executive Director of MassHousing since 2001. He has previously served as Vice President and Secretary/Treasurer of the NCSHA Board of Directors and received an Impact Award from NCSHA in 2008 for his work on an affinity agreement with Fannie Mae, which provides Housing Finance Agencies access to Fannie Mae programs at favorable terms and makes more affordable home loans available to moderate-income homebuyers.

Gleason is a member of Fannie Mae's National Customer Advisory Board and a former member of Fannie Mae's Affordable Housing Advisory Council. He also serves on the Boards of the Massachusetts Housing Investment Corporation, the Community Economic Development Assistance Corporation and as a member of the Mortgage Roundtable of the National Association of Home Builders.

In its 49-year history, MassHousing has provided more than $18.5 billion for affordable housing, 62% ($11.5 billion) of which of which has been provided during Gleason's tenure as CEO. MassHousing has helped more than 78,000 low and moderate-income families buy or refinance their home. MassHousing has a multi-family loan portfolio of 494 apartment communities valued at more than $3 billion. The Agency also operates its own mortgage insurance fund and services its own single-family loan portfolio which has more than 22,000 loans valued at over $3.7 billion.

"We are so fortunate to have Tom Gleason's continued leadership as president during this transformative time for HFAs. With his vision and enthusiasm for HFAs and their work, we are excited to continue our efforts to protect and strengthen the federal housing resources on which HFAs rely while identifying new and innovative ways for HFAs to do business in furtherance of their affordable housing mission," said NCSHA Executive Director Barbara Thompson.

Gleason was reelected President at NCSHA's recent Annual Conference in Nashville along with other officers of the Board of Directors, including: Vice President Grant S. Whitaker of the Utah Housing Corporation; Secretary/Treasurer Ralph M. Perrey of the Tennessee Housing Development Agency; and At-Large Executive Committee Member Tia Boatman Patterson of the California Housing Finance Agency.

MassHousing Hosts Boston Home Center Training on New Consumer Mortgage Lending Regulations

Attorney DeBorah Sonnenschein and MassHousing's Paul Mulligan

The Boston Home Center recently hosted a training session for its employees in MassHousing's Bill White Board Room to provide education on the new regulatory changes in home mortgage lending issued by the federal Consumer Finance Protection Bureau (CFPB), which took effect on October 3. Presenters included Rob Consalvo, Deputy Director for the Boston Home Center, Paul Mulligan, MassHousing's Risk and Compliance Manager, Attorney DeBorah Sonnenschein, Santander Bank Loan Officer Kathy Objio and MassHousing Business Development Officer Lisa Fiandaca.

Although CFPB calls the new regulations "Know Before You Owe," the industry has referred to them as "TRID" since their inception. TRID stands for Truth-in-Lending Act (TILA)/Real Estate Settlement Procedures Act (RESPA) Integrated Disclosures. The CFPB's goal with TRID is to clarify and simply the most important disclosures associated with consumer residential real estate mortgage closings with two new disclosures: the Loan Estimate ("LE") and the Closing Disclosure ("CD").

The LE, which replaces the Good Faith Estimate (GFE) and initial Truth in Lending (TIL) statements, must be provided to consumers within three business days of their submission of a complete loan application. The LE provides "estimates" of costs and fees to close which, once issued, become binding on the lender with few tolerances or exceptions. The three-page LE contains most of the same information and figures as the GFE and initial TIL in a clearer format.

Similarly, the CD replaces the HUD-1 Settlement Statement and final TIL. This new five page form presents similar figures to those presently provided by the TIL and HUD along with additional important disclosures in a format which the CFPB feels is clearer and simpler. Also new is the requirement that lenders must provide the CD to consumers at least three business days before their closing date so that borrowers know their closing costs well prior to the settlement date and can see whether those costs improperly exceed the estimates provided by the LE.

Lenders must use these new LE and CD documents for all applicable loan applications received on or after October 3. Lenders have been working with their loan origination software and document providers to receive updated software to accommodate the new documents.

While the CFPB has presented a lot of plainly written guidance on its webpage, many specific issues have not been clarified by the CFPB. Lenders are left to figure out how to handle loan-level situations and are working hard to anticipate how actual closings will play out.

Over the past several months, MassHousing has been working with its lenders and QC vendors to determine MassHousing's interpretations of the TRID rules so that we can continue to buy loans from our lender partners without major issues. We hope that the CFPB will issue guidance on common specific issues as they arise when lenders put the new forms to actual use. MassHousing is also hopeful that the CFPB will be lenient on enforcing the new rules until after the new year so lenders can work out issues in good faith, while focusing on the main goal of helping borrowers understand the terms and costs of their borrowing. This concern dovetails with MassHousing's mission to help low and moderate income borrowers not only purchase homes, but be able to sustain their ownership through effective education and counseling.

Parsons Village Completed in Easthampton

New housing will provide affordable apartments for 38 families

A new affordable housing community will provide homes for 38 families with the opening of Parsons Village in Easthampton.

MassHousing provided $1.175 million for Parsons Village from the Affordable Housing Trust Fund, which MassHousing manages on behalf of the state Department of Housing and Community Development.

Parsons Village was developed by the Valley Community Development Corp. and HAPHousing and is a new construction housing community consisting of four studio units, eight one-bedroom units, 18 two-bedroom units and eight three-bedroom units in seven buildings on a 4.34-acre parcel near Mount Tom. Two of the units are fully accessible.

All of the units are affordable and Parsons Village incorporated LEED design specifications for green space and building components. The housing is clustered with a southern orientation to conserve open space and to utilize solar energy.

The contractor was Allegrone Construction Co. and the architect was Dietz Architects. HAPHousing is the property manager.

Mayor Walsh and Jackson Square Partners Celebrate Revitalization of Jackson Square

Major Improvements at Jackson Commons Are Part of Jackson Square Redevelopment Master Plan

Mayor Marty Walsh recently joined Jackson Square Partners, a collaboration led by Urban Edge and the Jamaica Plain Neighborhood Development Corporation (JPNDC), to announce three significant milestones achieved in the Jackson Square Redevelopment Master Plan.

These milestones mark the final phases of development that will add 37 affordable units to the city's housing market, the start of construction on a separate residential development that will create 39 new affordable units for families, and the beginning of a land remediation process for a nearby recreation center, with the help of a $200,000 grant from the U.S. Environmental Protection Agency (EPA).

"I am proud that the City of Boston has invested funding into the redevelopment of these once vacant and underutilized public and private parcels," said Mayor Walsh. "I want to thank the EPA for this grant to help us move forward with the process of restoring the land to a useful state, and our partners for working with us to create transit-oriented housing that will knit the Roxbury and Jamaica Plain Neighborhood together."

The three milestones include:

The completion of Jackson Commons: This project cost more than $21 million and is comprised of a 37 unit, mixed-use and mixed income housing development near the Jackson Square MBTA stop. The development is more than 10,000 square feet of ground floor retail, as well as 2,000 square feet of retail and commercial space. The redevelopment consisted of the adaptive re-use and renovation of the 100 year old, three-story, 23,600 square-foot Webb Building. The residential unit mix includes 25 two-bedrooms, 7 one bedrooms and 5 three-bedrooms. Eight units are reserved for homeless/formerly homeless residents earning no more than 30 percent of AMI. The remaining 29 units are affordable to residents with income limits of 60 percent AMI to 110 percent AMI. MassHousing provided $1.4 million for Jackson Commons through the Affordable Housing Trust Fund, which MassHousing manages on behalf of the state Department of Housing and Community Development (DHCD).

The groundbreaking of the third phase of 75 Amory Ave., in which the $16 million project will create 39 units of affordable housing for families. The site is being developed by the JPNDC.

$200,000 in Funding for Land Remediation: The U.S. EPA awarded the City of Boston $200,000 in brownfields grant funds for the remediation of the former industrial sites next to Jackson Commons at 1542 Columbus Avenue in Roxbury. This land will be transformed into a recreation center for the neighborhood.

When complete, the $250 million Jackson Square Redevelopment Master Plan will include more than 400 units of housing, 60,000 square feet of ground floor retail, two major community facilities, 10,000 square feet of office space, and will have generated an estimated 276 construction jobs. Among other funding sources, Urban Edge has received more than $4 million in funding assistance from the City of Boston and more than $2 million from DHCD.

In accordance with the City of Boston's Green Affordable Housing Program, Jackson Commons boasts high efficiency heating and cooling systems fixtures as well as Energy Star rated appliances.

Village Green Apartments Completed in Barnstable

The first phase of the Village Green Apartments in Barnstable has been completed with 60 new affordable apartments for families.

The Village Green Apartments were developed by Dakota Partners, Inc. The 60 new units are located in two three-story, wood-frame buildings on Independence Drive in Barnstable.

The project received $1 million from the Affordable Housing Trust Fund, which is administered by MassHousing on behalf of the state Department of Housing and Community Development.

Dakota Partners is planning a second phase of development that will involve another 60 new rental units in two buildings.

The Energy Star certified buildings were constructed using modular technology and provide elevator service. Each building contains a mix of one, two and three-bedroom units serving the needs of the Cape's singles, couples and families.