MassHousing Blog

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.

Planning for Housing Production awards will help 15 municipalities achieve their affordable housing goals

Lt. Governor Karyn Polito announced MassHousing’s Planning for Housing Production Grants at a State House event on May 14, 2018 that highlighted the Administration’s efforts so far on its Housing Choice Initiative

In 2017, MassHousing pledged to make up to $2 million in planning grants available for cities and towns to help them overcome barriers to new housing production.  Earlier this month MassHousing delivered on that pledge, making the first of three rounds of awards.

Announced on May 14 at the State House by Lt. Governor Karyn Polito, the Planning for Housing Production awards will help 15 communities deliver new mixed-income housing in a manner that is consistent with their local priorities and to make progress toward their affordable housing goals.

The awards are part of MassHousing’s commitment to the Baker/Polito Administration’s Housing Choice Initiative and will help communities that have already engaged in local housing planning, but have identified obstacles to realizing their planning vision.  

“Our objective is to help municipalities progress toward, achieve and exceed Chapter 40B's ten percent affordable housing goal,” said MassHousing Executive Director Chrystal Kornegay.  “We hope to change for the better the way cities and towns interact with Chapter 40B and forge new partnerships with local officials to meet the Commonwealth's housing challenges.”

Planning for Housing Production Grant Recipients:

Abington and Rockland will design water treatment plant upgrades to the towns’ Joint Water Works, enabling the plant to deliver drinking water to new housing developments that are currently stalled by a lack of available potable water. The improvements will serve Rockland’s 40R smart growth overlay district, and unlock a total of 183 new housing units, including 153 affordable units, in the two towns. The municipality plans to apply for MassWorks construction funding. $150,000

Amherst will identify publicly owned parcels suitable for affordable housing development, and will reduce regulatory barriers to mixed-income housing by creating a 40R smart growth overlay district.

Beverly will create a data transparency toolbox that will model the impact of current and future downtown housing development on school enrollment, private automobile usage, public safety costs, and the adequacy of water and sewer infrastructure. Beverly’s development impact toolbox will advance the build out of the City’s recently adopted 40R and downtown mixed-use zoning districts, and will assist the exploration of additional upzoning efforts, including along the Bass River district. This project supports the immediate development of 75 mixed-income housing units.

Gloucester will advance a comprehensive reworking of its zoning ordinance, by modernizing dimensional and use tables, density standards, permitting thresholds, and exploring a transit-oriented development district, to unlock new mixed-income housing development in the City’s downtown.

Hudson will conduct predevelopment studies and drive public engagement that will enable the redevelopment of two Town-owned parcels for as many as 50 new units of affordable housing.

Littleton will engage residents and other stakeholders in a public visioning process that will rezone the neighborhood around the Town’s commuter rail station for new housing growth.

Newton will create a data transparency toolbox that will model the fiscal impact and economic development opportunities created by new housing development. The data toolbox will support the City’s Washington Street Corridor master planning project, allowing the City to engage residents and stakeholders by modeling various development scenarios in real time. This project will support the creation of 2,500 new housing units, including 325 new affordable housing units.

Norfolk will implement the recommendations of its recent housing production plan, by rezoning the area around its town center and commuter rail station for new housing growth. This project will deliver new zoning language, design guidelines, draft Board of Health regulations, and wastewater and storm water analyses, allowing Norfolk to consider zoning for 125 new housing units at its Fall 2018 Town Meeting.

Oak Bluffs will conduct predevelopment feasibility work, including wastewater planning, financial feasibility, a zoning review, and preliminary site engineering, on a Town-owned parcel, advancing the development of up to 60 new affordable housing units.

Salem will implement the vision of its recent Imagine Salem planning process, by pursuing a new mixed-use zoning district in the City’s Bridge Street Neck neighborhood, conducting a citywide public engagement campaign around affordable housing needs, and advancing a new inclusionary zoning ordinance. This project will support Salem’s efforts to meet new housing demand, estimated by MAPC, of 2,700 new housing units by the year 2030. 

Scituate will carry out the recommendations of its housing production plan and village center vision plans, by creating new Town-wide affordable housing guidelines, advancing the creation of a new 40R district around the Greenbush commuter rail station, implementing a Town-wide inclusionary zoning ordinance, and exploring the creation of affordable starter homes on nonconforming lots.

Swampscott will implement the recommendations of a recent master plan and housing production plan, by creating a new 40R zoning overlay district around its commuter rail station.

Tisbury will advance a public-private partnership between the Town, the Island Housing Trust, and the Island Food Products Corp., to transform a 4-acre industrial site near downtown Vineyard Haven to as many as 80 new affordable homes. The MassHousing award will support extensive predevelopment work at the site, including financial feasibility, site planning, infrastructure planning, and rezoning.

Truro will design a water line extension that will support the redevelopment of a Town-owned parcel into 32 new housing units. The property, which was acquired by the Town from MassDOT, is being developed under the Baker-Polito Administration’s Open for Business initiative. The municipality plans to apply for MassWorks construction funding. $150,000

With recent visits to Attleboro and Lynn, MassHousing staff have visited local leaders in 21 of 26 Gateway Cities

Attleboro Mayor Paul Heroux (right) talks with MassHousing staff members (from left) Meaghan McCarthy of Rental Business Development, Mounzer Aylouche of HomeOwnership and Nancy McDonald of Government Affairs

In October of 2016, MassHousing committed to visiting local officials in each of the 26 Gateway Cities in the Commonwealth.  With recent visits to Attleboro and Lynn, the total number of visits stands at 21.  Teams of MassHousing staff from the major business lines and other divisions have met with municipal leaders and heard about the housing needs in Attleboro, Chelsea, Fall River, Lawrence, Lowell, Lynn, Revere, Taunton, Westfield, Brockton, Chicopee, Everett, Fitchburg, Haverhill, Malden, New Bedford, Pittsfield, Quincy, Salem, Springfield and Worcester.

"Visiting these communities and speaking with their local leaders has been tremendously helpful in understanding the housing challenges and opportunities across the state," said Tom Lyons, MassHousing's Vice President for External Affairs. "There is no substitute for sitting down face to face and hearing directly from the people whose job it is to lead their communities.  We are grateful that they have taken the time to share their visions for affordable housing."

Lynn Mayor Thomas McGee (center) is pictured above with (left to right) Cynthia Lacasse of Rental Business Development, Nancy McDonald of Government Affairs, Tom Lyons of External Affairs and Lisa Fiandaca of HomeOwnership

Conference to Address Needs of "Older Adults in Community"

A photo from the 2017 Community Services Conference

MassHousing’s 2018 Community Services Conference will help housing, social service and other professionals better meet the needs of the growing population of older adults.

Older Adults in Community will be held Wednesday, June 13 in Norwood, in partnership with the Executive Office of Elder Affairs.

“The aging of our population presents both challenges and opportunities for affordable housing,” said MassHousing Community Services Manager Thaddeus Miles. “By bringing together professionals representing different roles, perspectives and expertise, this year’s conference will ensure that attendees are equipped with the knowledge and strategies to best serve older residents in their communities.”

Each year, the Community Services Conference addresses a single topic of importance to housing and social service professionals. Past conferences have covered hoarding, the opioid epidemic, violence prevention, substance abuse and youth in housing, among other topics.

At the 2018 Conference, Tufts Health Plan Foundation President and Tufts Health Plan VP of Corporate Citizenship Nora Moreno Cargie will deliver the keynote, and Elder Affairs Secretary Alice Bonner will address the audience. In addition, the all-day event will provide attendees the opportunity to learn more about such topics as isolation, Dementia/Alzheimer’s, age-friendly and dementia-friendly communities, behavioral health, protective services, grandparents raising grandchildren, housing and healthcare and LGBT topics.

“Housing that is accessible, supportive and affordable is a cornerstone of creating age-friendly communities that are more welcoming and livable for people of all ages,” said Massachusetts Elder Affairs Secretary Alice Bonner. “We are so pleased by the partnership and leadership that MassHousing has demonstrated by focusing this year’s conference on the needs of older adults. The hundreds of housing and social service professionals who will attend play a vital role in the lives of older residents. It is our hope that attendees leave this conference with a new understanding and tools to help older people continue to live and thrive in the communities they call home, both now and as they age.”

The event is free for staff of TAP member sites and open to all interested professionals.

Learn more about the conference and register today!

MassHousing Recognized for Supplier Diversity Excellence

MassHousing Director of Diversity & Inclusion Andrea Laing with Bill McAvoy from the Supplier Diversity Office

MassHousing was recently honored with a Quasi-Public Organization of the Year Award for participation in the Commonwealth's Supplier Diversity Program. The recognition was presented by the Supplier Diversity Office during the Operational Services Division’s recent MASSBUYS event at Gillette Stadium.

"MassHousing is excited to provide a path for barriers to be removed and doors to be opened for all who seek business with us," MassHousing Director of Diversity & Inclusion Andrea Laing.

The honor speaks to MassHousing’s longstanding commitment to hire minority, women, service-disabled and LGBTQ businesses in our operations. In addition, the Agency is fully integrated with the Commonwealth’s diversity efforts and is working with OSD to share data.

MassHousing spent more than $2.2 million with Minority and Women-Owned Businesses in FY'17 for a variety of goods and services as part of the Agency’s operations.

Down Payment Assistance is Here!

MassHousing recently rolled out a down payment assistance program to help Massachusetts homebuyers overcome one of the biggest obstacles to homeownership.

Through the program, eligible borrowers can access down payment assistance for up to 3% of the home’s purchase price or $12,000, whichever is less.

"Student debt and high rents make saving for a down payment difficult for even the most creditworthy homebuyers in Massachusetts," said Lisa Fiandaca, MassHousing's Director of HomeOwnership Production. "This program keeps homeownership within reach for working families."

To qualify for down payment assistance, borrowers must be first-time buyers earning no more than 100% of the area median income (AMI), who are purchasing a single-family home, condominium or Planned Unit Development (PUD). Other eligibility restrictions apply.

MassHousing will continue to offer affordable mortgages with low down payment requirements to Massachusetts homebuyers earning up to 135% of AMI. Loans insured by MassHousing feature MIPlus, a unique protection that helps a borrower pay their mortgage if they lose their job.

Learn more about down payment assistance from MassHousing!

Adaptive reuse of historic Pacific Mills cotton complex in Lawrence will provide 180 apartments for residents with a range of incomes

The ongoing transformation of historic industrial mills in the City of Lawrence continues.

MassHousing and Reed Realty Advisors LLC recently closed a $28.8 million transaction that will help transform the Pacific Mills cotton complex – built in the 1890s -  into a new, 180-unit affordable housing community called Pac 10 Lofts, with 40 workforce housing units for moderate-income households.   

“Pac 10 Lofts will fill a critical need for mixed-income housing in downtown Lawrence, while transforming a vacant mill property into a vibrant, new housing community,” said MassHousing Executive Director Chrystal Kornegay. “The redevelopment of the former Pacific Mills marks another step forward in Lawrence’s revitalization. Mayor Rivera is attracting investment to Lawrence, to create a more vibrant, welcoming city. MassHousing is pleased to be part of the Mayor’s efforts to create more quality, affordable housing for lower-income residents and working families. I congratulate the Mayor, and Reed Realty Advisors, for their work on this important project.”

Financing highlights:

• $14 million tax-exempt permanent loan
• $1 million taxable permanent loan
• $8.8 million tax credit equity bridge loan
• $5 million from MassHousing’s $100 million Workforce Housing Initiative
• $16 million in Low-Income Housing Tax Credit equity
• $1.8 million from an allocation of state historic tax credits
• $3.6 million seller note
• $2.5 million deferred developer fee
• $210,000 in financing from the City of Lawrence

Of the 180 new apartments:

• 18 will be for low-income households earning at or below 30% of Area Median Income (AMI)
• 112 will be for households earning at or below 60% of AMI
• 40 will be workforce housing units for households earning at or below 80% of AMI
• 10 units will be rented at market rates.

The area median income for a family of four in Lawrence is $95,000

The contractor will be LaRosa Construction Company. The architect is AURALITH Architecture LLC and the management agent will be WinnCompanies.

MassHousing has financed or administers the subsidy contract for 16 rental communities in Lawrence, for a total of 1,965 housing units and an original loan amount of $103 million. The Agency has also provided $121 million in financing to 1,343 Lawrence homebuyers or homeowners.

Cambridge Housing Authority, MassHousing close $13.9 Million transaction to renovate, preserve affordable rents at Russell Apartments in Cambridge

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.