MHP uses its bank-funded loan pool to provide long-term financing
Posted on July 26, 2010
GLOUCESTER, July 6, 2010 --- State and local officials recently gathered to celebrate the groundbreaking of the third, and final, phase of redevelopment at the former LePage glue factory in Gloucester.
"This type of project, fraught with problems, doesn't happen without political support from the city," said Warren Sawyer, Chairman and Co-Founder of the project's sponsor, The Caleb Foundation. "Since 2002, people have had the tenacity to complete this project."
The Massachusetts Housing Partnership (MHP) is providing a $740,000 long-term fixed rate loan commitment from its bank-funded loan pool to help The Caleb Foundation create the 34-unit affordable rental development called the LePage Apartments at Pond View. The new apartments will be built on the site of a former LePage glue factory building and will consist of six one-bedroom units, 21 two-bedroom units, and seven three-bedroom units. All units will be made affordable to residents earning below 60 percent of the area median income. Construction is expected to be complete by early 2011 with tenants moving in during the summer of 2011.
"I'm very excited to see the before of what will become new, vibrant, affordable units here in Gloucester," said MHP's Managing Director Mark Curtiss at the July 22 groundbreaking event. "It's important to understand the transformative affects these projects can have on a community."
This is the second time MHP has used its privately-funded loan pool to support the redevelopment of the LePage glue factory site. In 2003, MHP committed a total of over $2.8 million in first and second mortgage financing to support the first phase of LePage development. This loan resulted in 43 affordable rental units.
MHP is able to provide its $740,000 in long-term private financing due to 1990 law that requires companies that purchase Massachusetts banks to make bank loan funds available to MHP. Since then, MHP's loan pool has grown to over $1.1 billion and it has provided over $643 million for the financing of over 15,000 rental units all across the Commonwealth, at no cost to the taxpayers. Whenever possible, MHP finances projects that include units for lower and middle-income households and three-bedroom units that serve families. For more information about MHP and this project, contact Deputy Director of Lending Dick Mason at 617-330-9944 ext. 242.