Posted on January 11, 2007
BOSTON, January 11, 2007 --- The Massachusetts Housing Partnership (MHP) finished 2006 by committing more than $8 million for the financing of 189 affordable units in Boston.
MHP has committed $1.86 million in first mortgage financing and a $750,000 Home Funders second mortgage to Lena Park Community Development Corporation for the development of Olmsted Green, a new 51-unit affordable rental housing effort at the former Boston State Hospital site. All units will be affordable to households making up to 60 percent of median income. Thanks in part to Home Funders, a program that allows developers to offer lower rents, 15 of the 45 two-bedroom units will be affordable at 30 percent of median, which is $25,250 for a family of four.
MHP has also committed $320,000 in first-mortgage financing and a $100,000 Home Funders second mortgage to Sojourner House, Inc., for the construction of 11 new units of affordable housing on Humphreys Street, Dorchester. All units will be affordable to residents who earn 60 percent of the median income, and three units will be affordable at 30 percent. Part of MHP’s first-mortgage commitment ($100,000) is being funded by the Local Initiative Support Corp. and Harvard University’s 20/20/2000 affordable housing initiative.
In Roxbury, MHP has committed $600,000 in first-mortgage financing to Forward, Inc. for the rehabilitation of Walnut House, a single-resident occupancy apartment building near Egleston Square. The rehab will increase the number of units from 32 to 34. The property will be managed by Rogerson Communities.
MHP has also committed $4.35 million in first-mortgage financing and $450,000 in Home Funders second-mortgage financing to Nuestra Comunidad Development Corporation and Mattapan CDC for the rehabilitation of 95 units at Adams Court in Mattapan. The development will be completely affordable to families who earn 60 percent of the area median income, and nine two-bedroom units will be reserved for families who earn no more than 30 percent of the median income.
MHP is a quasi-public state agency that provides permanent financing for affordable rental housing, with loans ranging from $250,000 to $15 million. MHP uses private bank funds to finance affordable housing due to 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.
Home Funders was created to address the problem of affordable housing for extremely low-income families by helping developers make more units affordable to lower-income households. Homefunders is funded by some of Greater Boston's most prestigious charitable foundations. It was founded by the Paul and Phyllis Fireman Charitable Foundation, The Highland Street Connection, the Hyams Foundation, The Boston Foundation, and The Mellon Charitable Giving Program/Peter E. Strauss Trust.
For more information, contact MHP's Callie Clark by email or at 617-330-9944 ext. 336.