MassHousing Blog

MassHousing's Thaddeus Miles Named Co-Chair of Jane Doe Inc.'s White Ribbon Day Campaign to Help End Gender-Based Violence

Thaddeus Miles

MassHousing Director of Public Safety Thaddeus Miles has been named Co-Chair of the 2016 Massachusetts White Ribbon Day Campaign sponsored by Jane Doe Inc., the Massachusetts Coalition Against Sexual Assault and Domestic Violence. The other co-chair is Middlesex Sheriff Peter J. Koutoujian.

The 9th annual campaign was launched earlier this month with a press conference in Nurses' Hall in the State House. A new White Ribbon Day Campaign traveling exhibit created by Jane Doe Inc. entitled "Displays in Character: Men Reimagining Manhood" was also unveiled.

Lt. Governor Karyn Polito also took part in the event.

Miles brings years of experience empowering people and youth voice through his public safety work. Miles was featured in the 2015 White Ribbon Day Campaign "Reimagine Manhood."

"What I've learned, with all too much familiarity in both my personal and professional life, is that the impact of domestic and sexual violence is far-reaching," said Miles. "Not only does it permanently change the perspective of the individual being victimized but the deep scars that are left on those in the immediate presence are daunting. Those perpetuating the abuse are not exempt from damage either but what I hope to include in this conversation is the urgency with which we must interrupt these cycles to protect and repair the fabric of our communities."

The Massachusetts White Ribbon Day Campaign has its roots in the international White Ribbon Campaign started in Canada in response to a mass murder 26 years ago when a young man massacred 13 female students and injured over a dozen more. Today the campaign exists in nearly 60 countries, and Massachusetts is the first in the U.S. to organize a statewide effort.

"Displays in Character: Men Reimagining Manhood" features 13 men from all walks of life who have been active White Ribbon Day Ambassadors in Massachusetts. The exhibit will travel across the Commonwealth in hopes of inspiring other men and boys to take the pledge, wear the white ribbon and make a difference in promoting and creating safe relationships and communities.

MassHousing Partner Profile

Somerville Community Corporation's deep community roots provide a 'moral compass' for its work

This is the first in an occasional series of articles about the many partners MassHousing works with to fulfill its affordable housing mission

Since 1969, the Somerville Community Corporation has served the city with a focus on sustaining affordability and livability for lower income residents and recent immigrants and generational descendants of earlier immigrants.

"SCC is truly a community-based organization with a strong board of directors and a large and very active membership base," says CEO Danny LeBlanc. "That rootedness gives us both a very reliable moral compass about what needs to be done in our community, as well as the community support we need to move our efforts forward."

SCC creates housing for families earning anywhere from less than 30% to 110% of the Area Median Income; homeless families and individuals; and, clients of the state Department of Mental Health.

MassHousing has helped finance 7 SCC rental communities through the Affordable Housing Trust Fund (AHTF) for a total of 184 affordable units and $5.6 million in AHTF financing. MassHousing manages the AHTF on behalf of the state Department of Housing and Community Development (DHCD).

"Since its inception nearly 15 years ago, the Massachusetts Affordable Housing Trust Fund has been a crucial source of funding for almost every project SCC has done in that time period," said LeBlanc. "As administered by MassHousing, the Trust Fund has filled funding gaps for critically needed affordable housing projects in a manner flexible enough to help make challenging projects work."

MassHousing also works closely with SCC to educate first-time homebuyers and provide services for homeowners.

LeBlanc said that "MassHousing's strong support for first-time homebuyers – including presentations in our homebuyer education classes, mortgage products for first-time homebuyers, and The Road Home online curriculum for first-time buyers – are all important pieces of SCC's homebuyer program which is serving more than 300 people per year.

While SCC has long focused most of its attention on affordable housing development, ownership, and policy issues, it began in 2006 to focus greater energy on the other side of the affordability equation – the sufficiency of incomes of Somerville residents to sustain themselves in the city. SCC is now also focused on the incomes and assets of residents, as well as on the affordability of the housing stock, appreciating that the market will continue to drive housing costs up in Somerville.

As such, SCC has added a strong array of financial asset building programs over the last several years, including intensive classes; one-time workshops; Individual Development Account (IDA) matched savings accounts; and, one-on-one counseling.

St. Polycarp Apartments in Somerville was developed by SCC and funded by the AHTF

"We take pride in delivering our programs well, from the development of affordable housing to our asset building programs such as Financial Education, first-time homebuyer education, and our new First Source program connecting local low-income residents to job opportunities in Somerville," LeBlanc said.

LeBlanc said developing affordable rental housing in Somerville will continue to be challenging with the city emerging as one of the hottest real estate markets in the state.

"Both the cost and competition for land in Somerville are at an all-time high, making it increasingly difficult to even gain site control over properties in order to put projects forward," he noted. "Construction costs and other factors, along with the high acquisition cost, drive the per-unit development costs up, making it difficult to bring projects into the state financing agencies at an acceptable per-unit development cost."

LeBlanc points out the need for collaboration. "SCC is seeking new opportunities in creative partnerships with private sector developers, and in opportunities to drive publicly controlled land towards affordable housing development," he said.  We are also seeking to acquire small properties – nearly two-thirds of Somerville's existing housing stock is in two, three and four-family structures – to both get them off the speculative real estate market and to sustain them as long-term, deed-restricted affordable housing."

LeBlanc says that SCC "maintains an overarching mission-based commitment to sustaining an economically diverse community, despite the very hot market conditions that would displace many low and moderate income people from Somerville."

"We will continue to look for new and creative ways to do that, and will also count on our relationship with MassHousing to work with us to implement creative solutions to create and sustain as many affordable housing options as possible," LeBlanc added. 

75 Cross Street was financed with the AHTF and developed by the SCC

"SCC has been a strong partner with MassHousing for a long time and is well respected for the work it does in Somerville, particularly the quality affordable rental housing it has developed over the years," said MassHousing Executive Director Tom Gleason. "I think a large part of SCC's success is that they realize the most important part of what they do is the people they serve and advocate for."

SCC is a membership-based organization with nearly 400 formal members and 1,500 constituents, and works to influence affordable housing policy and neighborhood quality of life improvements. Its members organize for affordable housing, local jobs, and grassroots planning, and work to develop leadership skills through SCC's annual Leadership Development Institute.

New 40-unit apartment community for seniors opens in Roxbury

The 40-unit Ellen S. Jackson Apartments for senior citizens in Roxbury has been completed using $1 million from the Affordable Housing Trust Fund.

Named after Ellen S. Jackson, a civil rights leader and scholar who lived and raised her family in Roxbury and worked in the Boston Public Schools, the new affordable housing community was developed by Nuestra Comunidad Development Corporation.

MassHousing provided $1 million from the Affordable Housing Trust Fund for the project, which involved the new construction of a four-story building with 40 one-bedroom apartments on Blue Hill Avenue.

The new housing features state of the art energy components, a library, community room, a roof terrace and a garden to provide community space for gatherings for the residents. Available for the residents are support services to promote successful independent living.

MassHousing and Align Credit Union team up on Merrimack Valley first-time homebuyers program

MassHousing is partnering with the Lowell-based Align Credit Union to provide mortgage loans to first-time homebuyers in the Merrimack Valley through Align's $2 million Community Dream Mortgage Program.

Align is making $2 million in mortgage financing available to low- and moderate-income borrowers who want to purchase their first home in Billerica, Chelmsford, Dracut, Lowell, Tewksbury and Tyngsboro.

MassHousing will provide to borrowers its MIPlus™ mortgage insurance which will pay their monthly principal and interest payments for up to six months in the event of job loss.

The Merrimack Valley Housing Partnership and the Coalition for a Better Acre are also partnering in the effort.

The Community Dream Mortgage Program will allow down payments as low as 3% for single-family homes and 5% for multi-family homes. Loans combining funds for both purchase and rehabilitation will also be available Align will contribute $1,000 toward closing costs and charge no points.

"We were looking for ways to give back to the Greater Lowell community," said Kenneth Del Rossi, President and CEO, Align Credit Union. "We do initiatives like the Community Dream Mortgage Program because it's the right thing to do."

Lowell Mayor Rodney Elliot said promoting homeownership is important for any community and that Lowell has benefited in particular.

"What we do know, in the city, is that homeownership works," he said. "When people have their own home, they take pride in it and it helps strengthen the neighborhoods. Not every program fits every income level and demographic. For those people who fall through the cracks, they will now have an opportunity at homeownership."

For more information about the Community Dream Mortgage Program contact Jim Sullivan, Align's Vice President of Community Development at 978-323-0671 or JSullivan@AlignCU.com.

$10.2 Million will preserve 49-unit Waterview Apartments in South Boston as affordable housing for seniors

A $10.2 million loan from MassHousing to an affiliate of The Schochet Companies will finance property upgrades and extend long term affordable rents for the seniors living at The Waterview Apartments in South Boston. 

The loan was made through the U.S. Department of Housing and Urban Development's (HUD) Multifamily Accelerated Processing (MAP)/Ginnie Mae Mortgage Backed Securities (MBS) program offered by MassHousing.

As part of the MassHousing financing, the federal Section 8 Housing Assistance Payment (HAP) contract for the 49 apartments will be extended for 20 years.

Schochet Property Management will install a new elevator, new air conditioning units, a new emergency call system, and will make three apartments fully accessible.

"We really appreciate all of the help MassHousing provided allowing us to utilize the new (MAP)/Ginnie Mae Mortgage Backed Securities program," said Richard Henken, President of the Schochet Companies. "As a result, we were able to execute a great refinancing and preserve affordability of this important development for the long term."

Greenfield apartments being transformed in record time

Leyden Woods in Greenfield was built in 1973 and looks every bit like a 42-year old apartment community. But that is changing quickly, thanks to a MassHousing-financed rehabilitation using prefabricated components that are transforming the neighborhood almost overnight.

Outdated structures are being demolished and replaced with modular, prefabricated sections that will sit atop existing foundations. MassHousing is providing $53 million in financing for the redevelopment project.

"It's amazing to see how they are delivering and installing this new modular housing that when completed, will provide a brand new home for the families,” said MassHousing Executive Director Tom Gleason, who attended a recent groundbreaking event at the site.

Leyden Woods is owned by an affiliate of The Community Builders (TCB). TCB is using the MassHousing financing to completely replace the 200 apartments on the 44-acre property.

The MassHousing loan provides two distinct benefits. The apartments will be new and the rents will remain at their current affordable levels, thanks to TCB's agreement to extend the Section 8 Housing Assistance Payment (HAP) contract on 181 of the units for 20 more years.

The general contractor, Delphi Construction, is coordinating with a modular subcontractor to construct 49 new modular buildings off site. The new housing will be more energy efficient and accessible for residents with disabilities.

MassHousing's financing includes a $26.2 million construction and permanent loan, a $24.7 million bridge loan and a $2.1 million second mortgage loan. Other financing sources for the $79 million transaction included state Low Income Housing Tax Credits, funds from the state Department of Housing and Community Development (DHCD), TCB financing, a MassSave grant and a City of Greenfield infrastructure grant.

The architect is Davis Square Architects and the management agent is The Community Builders.

Upgrades and extended affordability coming to 145-unit seniors apartment community in Lynn

The Louis Barrett Residence in Lynn is home to many senior citizens and disabled residents. Soon the property will undergo extensive renovations thanks to $15.6 million in MassHousing financing. The new owner will also make sure the rents will stay affordable for the residents.

An affiliate of Silver Street Development used the MassHousing loan to acquire the property which was originally built in 1973. As part of the renovations 8 apartments will be made accessible for handicapped residents. As a condition of the MassHousing loan as well as the federal low income housing tax credits that were allocated to the developer, all 145 apartments will remain affordable to lower income residents for at least 30 years.

Numerous improvements are planned: repair and repointing of masonry exteriors, replacement of the entrance canopy; replacement of the existing roof membrane; resurfacing of parking areas and walkways; new utility doors; new windows and interior apartment doors; and kitchen and bathroom upgrades providing new tubs and showers. The owner also plans to incorporate green and energy efficient technology where possible in lighting, water fixtures, toilets, HVAC systems, boilers, and flooring.

"Our many thanks go out to the staff at MassHousing for another great partnership in preservation," said Chris Poulin, a founding principal at Silver Street Development. "Together we have made a very positive impact on the 145 households who call Louis Barrett Residence their home. It takes a tremendous effort to do what we do and having a partner like MassHousing is a huge benefit in solving issues. Complicated does not have to be hard and the MassHousing staff have figured that equation out."

The contractor will be Port Harbor Construction and the architect is The Architectural Team. The management agent is Harbor Management Corporation.

Renovations are underway at Madison Park Village III in Roxbury

Two recently closed MassHousing loans totaling $35 million are financing extensive property improvements at the 120-unit Madison Park Village III in Boston's Roxbury neighborhood. The long-term affordability of the units will also be extended.

The Madison Park Development Corporation (MPDC) will use MassHousing's $21 million tax-exempt construction and permanent loan and a $14 million tax-exempt bridge loan to renovate the property and extend the federal Section 8 Housing Assistance Payment (HAP) contract for 15 more years.

The contractor, LD Russo, Inc. has subcontracted 42% of the construction work to minority and women-owned firms, including much of the carpentry, roofing, masonry, plumbing, painting, sprinkler and metal work.

The architect is Elton and Hampton Architects and the management agent is WinnResidential.

Among the interior improvements will be new kitchens, bathrooms, and flooring; unit interior painting; door and hardware replacement; and replacement of plumbing fixtures.

Exterior upgrades will include full replacement of siding, trim, windows, doors, roofing and wooden stairs. The property will have new playgrounds and improved handicapped accessibility.

"Madison Park Village III has provided affordable homes to families for more than 35 years and this financing allows MPDC to fulfill our commitment to provide stability and economic security for Roxbury families while preserving this critical housing resource," said MPDC CEO Jeanne Pinado. "The renovations will provide energy efficient homes, upgraded site facilities and modern amenities and finishes for all the families."

Built in 1978, Madison Park Village III has 92 two-bedroom apartments, 22 three-bedroom apartments and 6 four-bedroom apartments for low- and very-low income residents.

Standard & Poor's upgrades MassHousing's Issuer Credit Rating to AA-

Standard & Poor's has upgraded MassHousing's issuer credit rating from A+ to AA-, citing the Agency's solid financial and lending performance resulting from the skillful leadership of MassHousing's management team. The Issuer Credit Rating, or ICR is a key determinant of the Agency's financial health and capacity to raise capital and lend for affordable housing.

"I am incredibly proud of this strong endorsement of our financial management and our staff's skill at creating effective lending strategies for affordable housing," said MassHousing Board Chairman Michael J. Dirrane. "The improved rating will make our bonds a more attractive investment and will allow us to be even more effective contributors to Governor Baker's ambitious economic development and housing agenda."

In its announcement, Standard & Poor's cited a number of factors that led to the upgrade, including:

• MassHousing's very strong and stable asset base, consisting of single-family and multifamily mortgage loans, Fannie Mae mortgage-backed securities (MBS), and high-quality investments;
• A significant reduction in the level of nonperforming assets (NPAs) over the past several years;
• Strong profitability ratios relative to those of similarly rated housing finance agencies (HFAs);
• Steadily improving equity levels, resulting in very strong leverage and liquidity ratios that are in line with those of other similarly rated HFAs; and
• A strong and stable management team that has actively addressed and resolved ongoing asset quality issues.

"This is a significant upgrade, one we are very pleased with and that our staff worked hard to obtain," said Executive Director Thomas R. Gleason. "S&P has made it clear that our underlying financial condition, which was strong to begin with has improved and that our lending programs are effective and well positioned for the future."

MassHousing's Deputy Director Timothy Sullivan cited a number of factors that contributed to the upgrade. "We have low delinquency rates in our loan portfolios; we have outperformed all of S&P's metrics for the previous rating for the last six years and we have a low risk balance sheet," Sullivan said. "Our lending has continued to be very strong, even during the recent economic downturn and today we have new and innovative loan programs that have adapted to the new economic terrain."

A key factor in the upgrade was MassHousing's resolution of the challenges stemming from a portfolio of loans made in the 1980s and 1990s through the SHARP (State Housing Assistance for Rental Production) program. "Those once underperforming loans have been refinanced and are no longer exerting a negative pull on our financials," said Gleason. "We achieved our goals of preserving affordable rental housing and resolving the financial issues."

MassHousing has a portfolio of loans for 493 multifamily properties valued at $3.1 billion, and a portfolio of 22,013 single family loans valued at $4.1 billion. MassHousing lends in all parts of the Commonwealth and currently oversees or finances about 1 in 23 homes (ownership and rental) in Massachusetts. The Agency has had record lending in recent years, and in fiscal year 2015 provided $1.1 billion that supported more than 9,000 households across the Commonwealth with affordable home mortgage loans or apartments.

Think you know Millennials? Think again.

By Peter Milewski
Director of Home Ownership Lending, MassHousing

Peter Milewski

I am a contrarian when confronted with things that some people see as problems. I prefer to see them as problems in search of a solution. Or opportunities.

One perceived problem is that people aged 21 to 35—so called Millennials—are unable to buy a home. As the thinking usually goes, Millennials are mostly tech-loving renters overwhelmed with student debt, who, despite possessing a sense of entitlement, are destined to rent small expensive apartments in urban enclaves while working long hours for tech startups or other entrepreneurial ventures. Right?

Wrong.

First of all, to categorize a group of people and attribute to them certain characteristics because of their age is a form of stereotyping. Like all of us, no matter our age, the Millennial cohort is made up of all kinds of people.

Some are college graduates. Some are military veterans. Some are police officers, firefighters, carpenters, electricians, plumbers and blue collar workers, who chose a different route into the work force. And they are doing well, thank you very much. Most of them are more tech-savvy than my baby boomer generation, but they are far from being nerds. Some have huge student loan debt, but many didn’t attend expensive colleges or universities and have little or no student debt. Some are the sons and daughters of immigrants, who are hard-working and conscientious, and anything but entitled.

Simply put, the world of 21 to 35 year-olds is incredibly diverse. Like snowflakes, each person is different. I am convinced that they collectively have the energy, enthusiasm, and the intelligence to make the world a better place than it was before them. There are no barriers to homeownership that they can’t overcome. When they really want to buy a home, we have seen that they usually find a way.

At MassHousing we know this, because between 60% and 70% of our borrowers over the past three years have been between the ages of 21 and 35 and 80% of them are first time homebuyers. Why do prospective homebuyers from this age demographic find MassHousing so appealing? I like to think it is because we understand their needs and provide loans with features, advantages and benefits that meet those needs. These include the following:

• Low down payments. Qualified homebuyers can purchase a home with as little as a 3% down payment. This is a surprise to many people, who think that a down payment of anywhere from 5% to 20% is required to get a loan.
• Affordable monthly mortgage payments. MassHousing offers a variety of product options that offer low interest rates, affordable mortgage insurance, and work with a variety of state and local down payment and closing cost assistance programs.
• Peace of mind and predictability. MassHousing offers only safe, secure 30-year, fixed-rate mortgages. There are no prepayment penalties or special terms that prevent homebuyers from refinancing if interest rates decline. When interest rates decline MassHousing offers borrowers low cost refinancing options to make their payments even lower.

So, if you are a Millennial between the ages of 21 and 35, or you know someone who is, keep two things in mind. First, don’t buy into the stereotypes about generations. People come from all kinds of different backgrounds and no one is predestined to follow a certain path because of when they were born. Second, if you or your Millennial friends and family members live here in Massachusetts and want to buy a home, then visit www.masshousing.com/homeownership or check out our new short videos about how to get started on the homebuying process.

MassHousing probably has a home loan to make the dream of owning a home easier, simpler, and more affordable than you ever thought possible.