Posted on August 23, 2017
During all the groundbreakings and grand openings in Boston this past fiscal year, there was always a spoken or unspoken qualifier when speakers took the podium to salute the City of Boston’s march toward its goal of producing 53,000 new units by 2030.
Boston can’t solve the region’s housing shortage alone.
In Fiscal Year 2017, MHP did more than just finance hundreds of affordable apartments in Boston. It also used its capital sources to finance affordable apartments in the communities surrounding the Hub.
In our continuing review of MHP financing in FY2017, here’s a rundown of loans and commitments MHP made in communities surrounding Boston:
MHP financing in FY2017 included Revere's One Beach in Revere and Somerville's Union Square Apartments.
Brookline – MHP has committed $14.7 million in 40-year fixed-rate financing to support the development of 25 apartments on Harvard Street north of Coolidge Corner between Beacon Street and Commonwealth Ave.
The financing and a Ch. 40B comprehensive land use permit issued by the Town of Brookline will enable developer Victor Sheen to tear down an existing building and construct a 4 ½ story building with 23 one-, two- and three-bedroom apartments. In addition, a home around the corner at 49 Coolidge Street will be converted into two units and a management office. Five of the units will be affordable to households earning no more than 50 percent of area median income.
The main building, dubbed JFK Crossing because it’s near President John F. Kennedy’s birthplace, will also include 23 below-ground parking spaces, four at street level and 5,100 square feet of ground floor commercial space.
Cambridge – MHP provided Homeowners Rehab Inc. a $10 million, 40-year fixed-rate loan so it could refinance 60 of the 137 mixed-income apartments at Auburn Park Apartments, which is located within a 26-acre, MIT-owned master plan site between Central Square and MHP.
Caritas Communities – MHP provided Caritas with a $4.4 million, 40-year fixed-rate loan so it could refinance 12 properties and 263 apartments for the very low-income and formerly homeless. The financing ensured that Caritas can make necessary repairs and keep rents low in six of its Boston properties, plus single-room occupancy properties in Arlington, Braintree, Everett and Medford.
Revere - An historic downtown corner that was once a popular rest point for stagecoaches and a post office run by Horatio Alger's father was transformed from an abandoned property into new homes for seniors thanks in part to financing from MHP.
MHP provided a $1.1 million loan from its bank-funded loan pool to help The Neighborhood Developers turn what used to be known as Fenno’s Corner into One Beach, which features 30 one- and nine two-bedroom apartments affordable to households earning less than 60 percent of area median income. Each apartment must include at least one member who is 55 or older.
MHP has now provided TND with over $14 million in first- and second-mortgage loans for the financing of seven affordable housing developments totaling 260 apartments in Chelsea and Revere.
“MHP is an important thought partner in what it takes to build housing across the Commonwealth,” said Ann Houston, TND’s executive director. “They are always thinking ahead about ways to create affordable housing and they are also a great business partner when you need a loan.”
Somerville - MHP used its bank-funded loan pool to provide a $2.3 million long-term loan to support the Somerville Community Corporation’s development of Union Square Apartments.
Built on the site of the former Pope School (later the Boys & Girls Club), the 35 affordable apartments represent SCC and the city’s attempt to keep Somerville affordable for all people in the wake of rising home prices that are sure to climb even higher when the Green Line is extended into Union Square.
At grand opening ceremonies earlier this year, it was revealed that 3,400 applications were received for the 35 units. “We passionately believe that it’s critical to the fabric of Somerville that we continue to have housing that people can afford,” said Dan Leblanc, SCC’s executive director.
This is the sixth time MHP has made a loan to SCC for affordable housing development. During the financing of Union Square, MHP also provided SCC with a $25,000 grant to work with the city on new planning and zoning guidelines that will enable the city to add affordable housing as it grows.
About MHP: MHP uses private bank funds and other capital sources to provide long-term financing for the creation and preservation of affordable rental housing.
Statewide in FY 2017, MHP provided over $91 million in commitments for the financing 1,600 apartments, over 1,000 of them affordable. In addition, MHP closed over $106 million in loans for the financing or refinancing of over 1,800 apartments.
For more details, check out MHP’s Multifamily Financing Interest Rate Tracker, which has terms and interest rates updated weekly for Treasury Risk Share, Fannie Mae Fixed, Fannie Mae Variable, FHA MAP and MHP Private Bank Funds.
For more information, contact Director of Lending David Rockwell at drockwell@mhp.net or 857-317-8550 or Senior Relationship Manager Nancy McCafferty at nmccafferty@mhp.net or 857-317-8556.
More FY17 reviews
Boston area - MHP preserves 496 affordable apartments
Boston - MHP finances +400 new units
Suburbs - 693 apartments financed, many through 40B
SE Mass/Cape - 9 developments, 469 apartments financed
Central Mass. - 6 developments, $27.5M for the financing of 368 apartments
Springfield: Featuring scattered site financings to keep neighborhoods strong
WMass: Supporting new homes for rural seniors & restoration of historic buildings