The 106-unit housing community in Brockton was refinanced through MassHousing's MAP/Ginnie Mae Joint Venture Initiative
Senior citizens at the 106-unit Bixby Brockton Apartments in Brockton will see the extension of affordability through year 2036 and property improvements as a result of $10.4 million in MassHousing financing.
Affordable Housing and Services Collaborative, Inc., which owns Bixby Brockton, refinanced the property through MassHousing's Multifamily Accelerated Processing (MAP)/Ginnie Mae Joint Venture program with partner lender Rockport Mortgage Corporation.
MassHousing offers the loan program through the U.S. Department of Housing and Urban Development (HUD) to the owners of rental housing communities, which provides lower interest rates and a faster review process while preserving and extending affordability for hundreds of low-income senior citizens and families.
As a condition of the MassHousing financing, the owner will extend the federal Section 8 Housing Assistance Payment Contracts on 104 of the 106 apartments at Bixby Brockton, extending affordability through 2036. The remaining two units are not occupied by tenants.
The Bixby Brockton Apartments were developed in the early 1980s and are contained in a four-story building and seven-story building at 103 and 106 Main St. in downtown Brockton. There are 88 one-bedroom apartments and 18 two-bedroom apartments.
"Downtown Brockton is being revitalized and this important affordable housing resource will be preserved for the senior citizens who live at Bixby Brockton," said MassHousing Executive Director Timothy C. Sullivan. "We were pleased to collaborate with Rockport Mortgage Corporation and Affordable Housing and Services Collaborative, Inc. to complete this transaction and applaud their commitment to helping provide quality affordable housing in Brockton."
Among the improvements slated for the property are refurbishment and reconfiguration of common areas with the addition of a fitness room and computer center, plumbing repairs, boiler replacement and building facade work.
"AHSC is truly grateful for MassHousing's and Rockport Mortgage's assistance in working with us and our property management team at Peabody Properties, Inc. to preserve the affordability and improve the quality of life for the residents of Bixby Brockton," said AHSC Executive Director Michael J. Mattos.
"MassHousing and the FHA have developed a critical financial response to the growing need for quality affordable housing. We were pleased to once again work with both agencies, as well as AHSC, in structuring a transaction that assures the long-term preservation of a vital affordable housing community in the Commonwealth," said Dan Lyons, Managing Partner of Rockport Mortgage Corporation.
MassHousing has partnered with two well-known and experienced MAP lenders: CBRE and Rockport Mortgage Corporation. The MAP lender prepares the submission of each transaction for HUD's approval. MassHousing then closes the new loan and issues a Ginnie Mae Mortgage Backed Security (MBS), which has consistently provided the multifamily mortgage industry its most competitive long term, taxable interest rates.
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.