MHP helps HCA acquire 18 units of rental housing
Posted on October 5, 2006
Using its ability to provide long-term, private-sector financing for affordable housing, the Massachusetts Housing Partnership (MHP) has committed more than a $1 million to help the Housing Corporation of Arlington (HCA) purchase and preserve 18 units of rental housing.
MHP has committed an $840,000 first mortgage and an $850,000 deferred payment second mortgage to support HCA’s acquisition and preservation of 18 single-bedroom affordable rental apartments that will be located in four buildings along Massachusetts Avenue.
In addition to the financing provided by MHP, the Town of Arlington contributed $450,000 from its Community Development Block Grant allocation. The North Suburban HOME Consortium also contributed funds. Feinmann of Arlington will provide the construction and project management services.
All of the units will be designated as affordable, mixed-income rental apartments targeting Arlington’s low- and moderate-income residents. Eight units will be reserved for households earning up to 80 percent of the median income (which is $52,950 for a household of two), eight will be rented to households below 60 percent of median ($40,380 for a household of two) and two will be rented at no more than 50 percent ($33,650 for a household of two).
“This is a positive step for Arlington,” said Kevin Greeley, Chairman of Arlington’s Board of Selectmen. “The Town has made affordable housing a priority, and HCA has run with it. We are true partners; my congratulations to HCA and their supporters.”
The purchase of these 18 units by HCA raises its affordable housing inventory to 46 units and ensures that they will be maintained as rental housing units rather than be converted to market rate condominium housing. For more information about HCA, click here. .
This is the second time in two years MHP has supported HCA’s mission of providing affordable housing opportunities. In 2005, MHP provided a $1.1 million first mortgage and an $875,000 deferred payment second mortgage for the purchase and conversion of six two-family houses into 12 affordable apartments. Click here for more information.
“In high-cost communities like Arlington, where land and the opportunities to build new housing are especially scarce, it’s vital that the existing rental housing be preserved,” said David Rockwell, MHP’s director of lending. “We’re delighted to be able to team once again with the Housing Corporation of Arlington in its mission of finding properties in Arlington which will remain affordable over the long term.”
ABOUT MHP: MHP is a quasi-public state agency that finances affordable rental housing with private bank funds, an outcome of a 1990 state law that requires banks that purchase other banks to make funds available to MHP. Since 1990, MHP has provided over $430 million in permanent loans for the financing of 12,000 units of rental housing. In addition to financing, MHP helps cities and towns initiate and develop affordable housing. It also provides homeownership opportunities through the SoftSecond Loan Program, a mortgage program for low and moderate-income first-time homebuyers.
For more information, contact MHP’s Callie Clark by email or at 617-330-9944 x336.