MassHousing has provided $13.9 million in financing to an affiliate of the Cambridge Housing Authority (CHA) that will fund an extensive renovation of the Russell Apartments, a 52-unit affordable housing community serving low-income senior citizens and disabled residents. The transaction will also extend affordability at the property, which is located at 2050 Massachusetts Avenue in Cambridge, for at least 30 years.
The CHA will convert 51 existing one-bedroom public housing units to a project-based federal Section 8 Housing Assistance Payment (HAP) Contract and will also add a new apartment, bringing the unit total to 52 under the HAP contract.
The financing was conducted via MassHousing’s Conduit Loan Program. MassHousing will issue tax-exempt housing revenue bonds for public purchase and the proceeds will be used for construction, in partnership with Wells Fargo Bank. The loan generated $8.2 million in equity financing for the project, through federal Low-Income Housing Tax Credits. Project financing also includes a $6.4 million sponsor loan and a $6.3 million seller note.
Of the 52 units:
- 5 are for households earning at or below 30% of the Area Median Income (AMI)
- 42 units are for households earning at or below 60% AMI
- 5 units are for households earning at or below 80% AMI
The area median income for Cambridge is $103,400.
Improvements will include:
- new kitchens and bathrooms in all units
- upgrades to common areas, HVAC and fire protection systems
- elevator replacement
- siding and structural repairs
MassHousing has financed or administers the rental subsidy for 14 rental housing communities in Cambridge involving 2,051 housing units and an original total loan amount of $137.1 million. MassHousing has additionally provided $68.5 million in financing to 550 Cambridge homebuyers or homeowners who refinanced their property.