Built with 40B permit, unique $24.9M financing collaboration between MassHousing, MHP
Posted on June 26, 2014
WESTFORD, June 26, 2014 – With leasing under way and the development nearly complete, Princeton Properties recently held a grand-opening event on its 200-unit rental development financed through a unique $24.9 million financing collaboration between MassHousing and MHP.
Princeton Westford was financed primarily with variable rate, tax-exempt bonds issued by MassHousing, backed by letters of credit arranged by MHP through its funding relationships with Bank of America and the Federal Home Loan Bank.
"This innovative, collaborative effort with MassHousing resulted in a good loan for Princeton Properties and 200 units of mixed-income housing for a region that badly needs it," said Mark Curtiss, MHP's managing director, at grand opening ceremonies held on June 10. "The 40 affordable homes are especially needed as a recent survey in nearby Chelmsford showed that over 500 households are spending more than 50 percent of their income on housing."
“This is the first joint loan that our two agencies have made and it could not have been to a more worthwhile project,’’ MassHousing Executive Director Thomas R. Gleason.
Built with a Ch. 40B permit, Princeton Westford will features 48 one-bedroom apartments and 152 two-bedroom,apartments in five four-story, wood-frame buildings.
“This type of facility is long overdue for Westford and I think it’s going to be good for our residents,’’ said Bob Herman, the chairman of Westford’s Zoning Board of Appeals which approved the comprehensive permit. The town also supported the development with $150,000 from its Affordable Housing Trust Fund.
“When you involve 40B you expect sparks to fly but it takes careful planning to make it possible," said Princeton Properties President Andrew Chaban. "Westford was tough but fair. They assisted us until we got to yes. Today is the culmination of hard work, investment and execution.’’
For more information about this development and MHP's financing options, contact MHP Senior Loan Officer Megan Mulcahy at mmulcahy@mhp.net.