Posted on December 8, 2003
BROOKLINE, Dec. 8, 2003 --- A former student hostel located in a neighborhood where much of the housing is taken by college students has been turned into 15 units of affordable housing, thanks in part to MHP and a significant loan from the town.
MHP is using its bank-funded loan pool to provide $850,000 in financing for the rehabilitation of the Beacon Street brick row house, located a few blocks from Cleveland Circle. MHP is making the loan to Caritas Communities Inc. of Braintree, the largest owner-operator of single-room occupancy (SRO) apartments in the Boston area.
Caritas also received a $1.1 million loan from the Town of Brookline.
SROs, previously known as lodging houses, provide lower-income people with single rooms combined with shared kitchen and bath facilities. These units serve extremely low-income people making approximately $14,000 per year, according to Caritas, which operates over 400 units in the Greater Boston area.
MHP is providing a $350,000 first mortgage and a $500,000 second mortgage at zero percent interest under its PERM Plus program, which is designed to help developers like Caritas serve more low-income people.
MHP has now provided financing for 228 of Caritas’ 400 units, with loans totaling over $8 million and involving 14 of the 21 Caritas properties.
“The vision of Caritas and its CEO Mark Winkeller, and its expertise at managing these types of properties is what enables MHP to puts its money to work in the way it was intended,” said Stan Lukowski, president of Eastern Bank and chair of the MHP board, during opening ceremonies held last month.
The Town of Brookline’s $1.1 million loan came from its linkage program, which requires developers who build private housing in town to construct affordable units or as in this case, provide cash to the town for affordable housing development.
“During these times when prices are skyrocketing, it’s vital that towns like Brookline step up to the plate,” said Lukowski.
For more information, contact MHP at 1-877-MHP-FUND.
(PHOTO INFORMATION: This Beacon St. building has been rehabbed into 15 units of affordable housing for extremely low-income individuals).