North Shore CDC, YMCA combine to remake Beverly neighborhood

BEVERLY, May 3, 2013 --- Another chapter in the continued revitalization of Beverly's Gloucester Crossing neighborhood was marked recently as state and local officials gathered to celebrate the completion of Holcroft Park Homes, Phase 2.

Holcroft Phase 2 involved the razing of five rundown homes and using these sites to build two new buildings featuring 29 affordable rental apartments. Phase 1, completed in 2012, involved the acquisition and demolition of three other rundown properties and the construction of three apartment buildings totaling 29 affordable rental apartments.

Both phases of Holcroft are family focused. Of the 58 rental homes created in both phases, there are 34 two-bedroom and 16 three-bedroom apartments, all affordable to families who make below 60 percent of the area's median household income.

"We didn't just build buildings, we revitalized the neighborhood," said Jack Meany, executive director of the North Shore YMCA, which co-developed Holcroft Homes with the North Shore Community Development Coalition. "This is now a safe place to live and it wasn't that way when we looked at this neighborhood back in 2006."

For decades, Gloucester Crossing was a thriving neighborhood populated by workers from the nearby United Shoe Machinery Corporation. In the 1980s, the neighborhood fell on hard times when the factory closed. Cut off from the rest of the city by busy streets and railroad tracks, the neighborhood became known for frequent visits by police.

The decision by the city to support the idea of revitalizing the neighborhood resulted in millions of dollars in investment in new housing, a reported drop in crime and new hope for the neighborhood.

"Holcroft Homes is an example of local leadership and nonprofit collaboration at its best," said MHP Executive Clark Ziegler at opening ceremonies on May 3. "The housing that was here was not serving residents or the neighborhood very well. The city knew it, everyone knew it and everyone knew something had to be done."

MHP used its bank-funded loan pool to finance both phases of Holcroft Homes, providing an $850,000 permanent first mortgage for Phase 1 and $930,000 permanent loan commitment for Phase 2. In addition, MHP provided both phases with a total of $600,000 in low-interest second mortgage financing from HomeFunders, which helped the developers make more apartments available to families making less than 30 percent of the area's median income.

As in Phase 1, the bulk of the financing for Phase 2 was provided through low-income housing tax credits awarded by the state Department of Housing and Community Development (DHCD). The state provided additional subsidies through Federal HOME funds, Facilities Consolidation Fund, Housing Stabilization Fund and the Affordable Housing Trust Fund.

"For everything we do at the Statehouse, none of it matters if there isn't a roof over people's heads," said Rep. Jerry Parisella. "That's where the dignity starts."

Acquisition financing for the properties that were razed was provided by Boston Community Capital, The Life Initiative and the Community Economic Development Assistance Corp. The Massachusetts Housing Investment Corp. was the tax-credit syndicator. Clocktower Tax Credit LLC and Kohl's were the tax credit investors.

Locally, the City of Beverly provided HOME and Community Development Block Grant funds. The development also received funding from the Danvers State Hospital Fund.

For more information about this development and MHP financing, contact Megan Mulcahy at 617-330-9944 x269 or mmulcahy@mhp.net.