$50 million in MassHousing financing will help the Related Companies preserve affordability, create workforce units and complete a variety of renovations and modernizations at the 489-unit Chestnut Park Apartments in Springfield.
Built in the 1970s, Chestnut Park Apartments consists of a 33-story tower with a connected four-level parking garage, an 18-story building, a nine-story building and a five-story building with a connected two-level parking garage. The development includes 207 one-bedroom apartments, 264 two-bedroom apartments, and 18 three-bedroom apartments, as well as 19,000 square feet of commercial space.
The financing includes $45 million in tax-exempt financing through the Agency’s Conduit Loan Program and $5 million from MassHousing’s Workforce Housing Initiative. The project will also benefit from an additional $2 million from the Affordable Housing Trust Fund, which MassHousing manages on behalf of the Massachusetts Department of Housing and Community Development.
"Related Companies is reinvigorating the Chestnut Park Apartments, bringing substantial capital improvements, greater income diversity, and strong property management practices," said MassHousing Executive Director Chrystal Kornegay. "MassHousing is proud to partner with Related and the City of Springfield on this important project. It will strengthen Springfield’s downtown, and the families who call this apartment community home."
Through the transaction, 412 units will remain affordable to households earning no more than 60% of the area median income. The remaining 77 units will be workforce housing units affordable to households earning no more than 85% of AMI.
Among the renovations planned for Chestnut Park are unit, streetscape, building envelope and systems upgrades, including the replacement of HVAC systems, windows and elevators. Related Companies also plans to make improvements to communal spaces and building amenities. The modernization project will bring 25 units up to ADA standards for mobility impaired households and 10 units for hearing-impaired households.