MassHousing Blog

Collaborate. Create. Celebrate.

MassHousing hosted its first partner awards ceremony October 24, to recognize some of the individuals and organizations that helped the Agency drive forward our mission. Massachusetts State Senator Harriette Chandler, pictured above with MassHousing Chairman Michael Dirrane and Executive Director Chrystal Kornegay, was presented with the Distinguished Contributor Award.

Residential Mortgage Services was recognized as top Gateway City lender. RMS representatives are pictured above with MassHousing's Chrystal Kornegay, Mike Dirrane, Mounzer Aylouche and Maureen Moriarty.

The City of Boston’s Department of Neighborhood Development was honored for partnering with MassHousing to offer homebuyer education. From left are Andrea Laing, Chrystal Kornegay, Lisa Fiandaca, Angelo Nuby and Maureen Flynn, Deputy Director of the Boston Home Center.

NEI Contracting received an award for highest achievement by a general contractor in contracting with minority- and women-owned businesses.

WinnResidential was honored for achievement by a management company in contracting with minority- and women-owned businesses. Arthur Winn of the WinnCompanies accepted the award.

Notable Fiscal Year 2018 Highlights

In response to the Commonwealth’s affordable housing challenges, MassHousing provided more than $1.2 billion in new financing for home mortgages and for rental housing in fiscal year 2018. Our portfolio of existing loans reached $8.7 billion while our cumulative financing across the Commonwealth since making our first loan in 1970 reached nearly $23 billion. Some of MassHousing's FY'18 highlights are presented below (click the image for a larger version):

Planning for Housing Production Illustrates New Way of Working with Municipalities

MassHousing’s $2 million Planning for Housing Production program helps municipalities with additional technical capacity to help implement their housing production goals. Understanding that cities and towns have unique housing challenges, plans and visions, MassHousing and its Planning & Programs Department are committed to being responsive to each community’s needs.

In FY'18, MassHousing provided grants to 15 communities who will use the funds to support a variety of efforts:

Helping to Create Jobs and Economic Opportunity

MassHousing has long recognized the economic opportunities created by the multifamily housing we finance and oversee. Working with property owners, developers and management companies, we helped to ensure that these opportunities benefited all Massachusetts communities (click the image for a larger version):

It's a Sellers' Market: Should I buy?

By Rita Coffey
2018 President,  Massachusetts Association of Realtors®

You’ve probably heard the news by now that it’s a sellers’ market. Do you know what that means? And more importantly, do you know how that impacts you when it comes to buying your first home? With a little understanding, you’ll be well on your way to becoming a homeowner. 

Whether you’ve started, or hope to start, the home buying process can be exciting and scary at the same time. There is a lot going on and working with a good local Realtor® is your best bet to make sure you find the best home for you. And the more educated you are, the better you’ll be able to understand and move through the home buying process. Learning about current market conditions is a good place to start. 

In July 2018, the Massachusetts Association of Realtors® reported there were 3.0 months of supply of single-family homes and 2.0 months of supply of condominiums available for sale. What months of supply measures is the number of months it would take to sell all the available homes that are currently listed for sale. So, why is it currently a "sellers' market?" These definitions will give you some reference: 

• A sellers' market is when there is less than 6.5 months of supply;  
• A buyers' market is when there is more than 7.5 months of supply; and   
• A balanced market is that space between 6.5 and 7.5 months of supply 

As you can see, it's typically either a sellers’ market or a buyers’ market. The name of the market generally describes who benefits the most from the current conditions. With months of supply so low, it is the seller who is generally going to benefit from greater competition among buyers in today's market.  

So, where does this sellers' market leave you? From the start, you need to know that there will be more competition among buyers. You need to make sure you’re in the best position possible to make an offer that the seller ultimately takes. One way to do this is to be pre-approved for a loan and have the pre-approval letter in hand. If you have a MassHousing loan, then you'll have that pre-approval letter. It is also good to be flexible as possible when it comes to closing dates. And the fewer conditions you add to the transaction, the greater your chances for success. Again, this is where your Realtor® can help guide you. 

While the sellers' market describes the market condition across the state as a whole, each city and town, neighborhood and street, and sellers are different. Stay committed to the process and you'll eventually find that home you’ve been looking for. And just keep in mind that regardless of the market, it is always a good time to buy (or sell) if it’s right for YOU.  

Holmes Beverly to provide transit-friendly residences, including workforce units

By Courtney Murtagh

On a once vacant parcel of land adjacent to a commuter rail station and an MBTA garage, a 67-unit transit- oriented development is nearing completion.

MassHousing provided $1.6 million in financing from its Workforce Housing Initiative and a $600,000 subordinate loan through the Federal Home Loan Bank of Boston's Helping to House New England Fund to help finance Holmes Beverly.

Most of the units at the property will be rented at market prices, but 16 are workforce housing units. Of those, 14 will be reserved for residents earning at or below 80% of the area median income (AMI), and two others for residents earning no more than 110% of AMI. The AMI in Beverly is $98,100.

The property is named after Oliver Wendell Holmes, who served as an Associate Justice for the Supreme Court of the United States from 1902 to 1932. Holmes had a summer home in Beverly, which was designated a National Historic Landmark in 1972.

All apartments will be dog friendly, and building amenities include a gym with a yoga studio, a roof deck, a library with a fireplace and a telecommuting meeting space. The accommodations and the convenient location next to transportation options make Holmes Beverly an ideal place for workforce housing. The apartments will be open to rent in August 2018.

The developer is Barnat Development, founded by Sarah Barnat.

Other funders are Boston Private Bank and the Massachusetts Housing Investment Corporation’s Healthy Neighborhoods Equity Fund.

Olmsted Green, Boston

Old Boston State Hospital Finds a New Purpose as mixed income housing

By Courtney Murtagh

Where Boston’s State Hospital once stood, in the largest collection of open space in the city, 41 new homeownership units are available, marking the completion of one of several phases that will yield more than 500 mixed-income units in Mattapan.

Olmsted Green is the first homeownership project to receive workforce housing fund; it received $1 million from the Workforce Housing Initiative. Other funding included $8.3 million from Eastern Bank and Boston Private Bank, while the city of Boston contributed $2.25 million in public funding.

The developer, Lena New Boston LLC, reserved 11 of the 41 condos with two- and three-bedroom floor plans for those who earn at or below 80% of area median income, and 11 more for those earning no more than 100% of AMI. The remaining units are priced at market levels.

The 22 low -, moderate- and middle-income units are reserved for first-time homebuyers. The units include spacious living areas and numerous amenities, including parking, a washer and dryer and a private outdoor patio.

Burbank Gardens, Boston

And the call is…safe!  At risk of converting to market rents, Fenway housing development will remain affordable for the long term

By Courntey Murtagh

MassHousing financing, including Workforce Housing funds, is ensuring that affordability remains intact for residents of Burbank Gardens.

Burbank Gardens is a 52-unit affordable housing development in the heart of Boston’s Fenway neighborhood. The four-story development was in danger of converting to market rents due to maturing mortgages that were originally funded through the Commonwealth’s Section 13A program. Communities financed under section 13A serve some of the lowest-income and most vulnerable populations in Massachusetts, including many elderly and disabled residents.

In January 2018 MassHousing and the Department of Housing and Community Development (DHCD) provided Fenway Community Development Corporation with $14.3 million in financing for Burbank Gardens.

Some of the financing total was used for renovations, such as improving accessibility and upgrading common areas. Life and safety improvements include fire safety and plumbing system upgrades as well as general updates and repairs to windows and doors.

The financing will also protect the affordability of units for as long as possible. Thirteen units that were unrestricted were converted to workforce housing apartments for families of four making up to $93,100 annually. The remaining 39 units are reserved for low-income residents earning between $31,000-$62,040 per year for a family of four.

MassHousing and DHCD have committed $100 million in capital to help preserve affordable 13A units that otherwise would convert to market rates. This was MassHousing’s sixth affordable rental housing community in Fenway/Kenmore, totaling 766 units as of February 2018.

Central Building, Worcester

Across from Mechanic’s Hall and once a movie set, property will become a 55-unit residence with workforce units

By Courtney Murtagh

The Central Building in downtown Worcester will soon be home to affordable and workforce housing. Built in 1925 and last used as an office space, the building had been vacant for several years. The Central Building has an interesting connection to pop culture, as some scenes from the 2013 movie "American Hustle" were filmed there.

The structure was being considered for demolition until the Central Building Development Group devised a plan to save it. The development team includes Aaron and Kathryn Krock, whose parents bought the Central Building about four decades ago.

MassHousing provided a $3.7 million permanent loan and $1.4 million in workforce housing funding from the Agency’s $100 Million Workforce Housing Initiative. The project also received approximately $12 million through an allocation of federal and state Low-Income Housing Tax Credits by the Massachusetts Department of Housing and Community Development (DHCD); more than $3.4 million in direct affordable housing funding from DHCD; $1.25 million in HOME funds from the City of Worcester; and approximately $6.3 million through allocations of federal and state historic tax credits.

The Central Building will provide 55 new apartments for lower income households in Worcester. Eight of the 55 new apartments will be for lower-income households earning at or below 50% of the Area Median Income (AMI), which is $85,800, and will be subsidized by Section 8 Housing Assistance Payment vouchers. An additional 28 units will be affordable for households earning at or below 60% of AMI. Fourteen apartments will be workforce housing units for moderate-income households earning at or below 70% of AMI, and five units will be rented at market rates. The development will also include ground floor retail space, which together with its residential units will bring new people and activity to this area of Main Street.

MassHousing celebrates Workforce Housing Initiative milestone at the Gateway North ribbon cutting

By Courtney Murtagh

Governor Charlie Baker joined MassHousing Executive Director Chrystal Kornegay and a number of elected officials, stakeholders and developers June 26 to celebrate the completion of Gateway North Apartments: a $31 million, 71-unit mixed-income property in Lynn.

The ribbon-cutting ceremony was especially monumental because Gateway North was the first development funded in-part through MassHousing’s $100 million Workforce Housing Initiative.

MassHousing Relationship Manager Sarah Hall coordinated the Gateway North transaction from its earliest stages through closing. 

"Gateway North was easily the most challenging project I’ve worked on, but it was also the most rewarding," Sarah said.  "To see the complete transformation of the Gateway site from an acre and a half of dirt to 71 new homes in a truly mixed-income community was a great reminder that all of the hard work that is required to get to a closing really does matter."

It was at Gateway North, two years ago, where Gov. Baker announced MassHousing’s Workforce Housing Initiative, and where he committed his administration to building 1,000 workforce housing units from the funds. It made MassHousing’s Workforce Housing Initiative the largest state-led middle-income housing effort in the country.

To date, MassHousing has committed $59 million in workforce housing funds to 26 projects located in 15 cities and towns in Massachusetts. The funds will help to build 2,374 housing units, including 631 new workforce housing units.

The Workforce Housing Initiative supports the creation of rental housing that is affordable for working families earning above 60% of the Area Median Income (AMI), which is too high to qualify for traditional affordable housing but too low to keep up with market rents.

The initiative is aimed at complimenting traditional affordable housing, not replacing it.

Gateway North is comprised of 53 traditional affordable housing units, 10 workforce units, and eight market-rate units.

The overarching theme of the June 26 ribbon-cutting ceremony was opportunity. Gov. Baker, Lynn Mayor Thomas McGee and Lynn Housing Authority & Neighborhood Development (LHAND) Executive Director Charlie Gaeta all talked about how the completion of Gateway North Apartments marks a vital step for further developing Lynn’s economy, and how it will increase opportunities for low- and moderate-income households.

The property is centrally located in the city’s Sagamore Hill District, near a business and retail hub and across the street from North Shore Community College. Situated two blocks from a commuter rail station and close to major highways, Gateway North was made with commuters in mind.

The one-, two-, and three-bedroom apartments are spacious and contain energy efficient appliances to help keep utility costs down. Inside the building is a community room as well as a gym.

The site was purchased for $600,000 in 2015 by LHAND, Neighborhood Development Associates Inc. and Hub Holdings LLC. Before Gateway North Apartments was built, the location was home to a vacant parking lot.

MassHousing provided $21 million in financing, including $1.6 million in Workforce Housing funds. This will ensure the 71 mixed-income units remain for at least 30 years. Residents have begun to move into the development and the workforce housing units are serving people working in the government, nonprofit and health care sectors.

In addition to MassHousing’s financing, Gateway North also received funding from LHAND, the AFL-CIO Housing Investment Trust, City of Lynn HOME funds, Boston Capital, Neighborhood Development Associates, EDIC/Lynn and the Massachusetts Department of Housing and Community Development.