Posted on March 14, 2006
Using its ability to provide long-term financing for affordable rental housing, the Massachusetts Housing Partnership (MHP) has committed more than $2 million for the financing of 118 affordable units in four developments in Western Massachusetts.
In Springfield, MHP has committed $750,000 to a subsidiary of Norwell-based First Resources Companies to help finance the rehabilitation of an abandoned apartment building into 55 units of affordable rental housing. The new effort, known as High Street Commons, also included a second abandoned property, which was demolished and turned into a small park.
In Holyoke, MHP has committed $415,000 to HAP Inc. of Springfield for the rehabilitation of Verano Apartments, a 44-unit development in four buildings in the South Holyoke section of the city. Extensive rehabilitation was done and all the apartments – 50 percent of which are three and four bedrooms - will be affordable to households making no more than 60 percent of area median income or no more than $43,020 for a family of four.
In Northampton, MHP has committed $100,000 in first mortgage financing and a $134,000 deferred payment second mortgage to HAP Inc. for the construction 12 new affordable rental units. The second mortgage is from Home Funders, a program MHP offers to help borrowers make more units available to lower-income households. Called Paradise Pond, it will feature one four-bedroom, five three-bedroom and six two-bedroom units, one of which will be handicapped accessible. It will be located next to Grace House, which houses a residential program for women with addictions and their children. HAP's aim is to provide homes at Paradise Pond for families coming through the shelter.
In Westhampton, MHP has committed $171,000 in first mortgage financing and a $525,000 deferred payment second mortgage to the Hilltown Community Development Corp. to help finance a new seven-unit senior affordable housing effort. Initiated after a local survey indicated a need for affordable housing, Westhampton Senior Housing was built with a Ch. 40B comprehensive permit and consists of seven one-bedroom units, five for households with incomes at no more than 50 percent of median income ($28,700 for a household of two) and two units at no more than 60 percent of median income ($34,440 for a household of two).
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. Bank transactions such as Bank of America’s purchase of Fleet Boston trigger the state statute that funds MHP. That acquisition resulted in a $406 million loan and an $18 million grant to MHP, pushing MHP’s total loan pool to over $1 billion.
MHP is one of the state’s leading producers of affordable rental housing. Since 1990, MHP has provided over $410 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, call 617-330-9944 x227.