Transformation of Gloucester factory site into housing is complete

GLOUCESTER, Sept. 27, 2011 --- In cities and towns across New England, there are old industrial buildings that are monuments to a manufacturing era long since passed. Some have been converted to housing. Some house new industries. Others are still empty, waiting to be redeveloped.

In Gloucester, state and local leaders gathered recently to celebrate the completion of LePage Village Phase III, the final phase of a redevelopment of a former glue factory complex into mixed-income rental homes and condominiums.

"It seems like only yesterday that this property was a collection of dilapidated buildings and it's wonderful that we've been able to address this and our need for affordable housing at the same time," said Gloucester Mayor Carolyn Kirk at grand opening ceremonies on Sept. 15. "This has been a community project and everyone in Gloucester is very proud of it."

LePage Village Phase III consists of 34 affordable rental homes - six one-bedroom apartments, 21 two-bedroom units, and seven three-bedroom units. All units are affordable to residents earning at or below 60 percent of the area median income (AMI) and four units will be reserved for residents earning at or below 30 percent AMI.

MHP has committed $740,000 in permanent rental financing to support LePage Village Phase III. This is the second time MHP has used its privately-funded loan pool to support the LePage redevelopment. 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. Phase II consists of 41 condominiums.

"This is a great development to be a part of," said David Rockwell, MHP's Director of Lending. "It's near the train station and it's in a great city in a great part of the state. We're delighted to have the permanent loan on both rental phases and we're looking forward to being partners for the next 20 years."

Phase III was developed byThe Caleb Foundation, a Swampscott-based nonprofit that has sponsored more than 20 developments across New England. The Caleb Foundation acquired the site for Phase III from Cape Ann Housing Opportunity, which developed the first two phases, now owned by the Massachusetts Housing Investment Corp. (MHIC).

Gloucester native and State Senator Bruce Tarr - represented at the event by his aide, Barry Pett - presented The Caleb Group board chairman Warren Sawyer with a citation commending the nonprofit company for stepping in to acquire and complete the LePage revitalization. "The building is beautiful and the grounds and the views from the apartments are just phenomenal," said Pett.

The $11.8 million LePage Village Phase III was financed mostly with federal low income housing tax credits and $5 million in federal stimulus funding from the Tax Credit Exchange Program awarded by the Patrick Administration and state Department of Housing and Community Development (DHCD). Construction financing was provided by MHIC. The development also received $550,000 in federal HOME funds, $765,000 from the state's Affordable Housing Trust Fund and acquisition financing from the Community Economic Development Assistance Corporation (CEDAC).

"It's rewarding to see that an abandoned industrial site is now a community of rental homes and condominiums for a variety of incomes," said Joe Flatley, president and CEO of MHIC.

For more information about this development and MHP's financing programs, contact Senior Loan Officer Megan Mulcahy.