Posted on September 22, 2017
A review of MHP’s lending in Central Mass. in Fiscal Year 2017 shows MHP’s ability to finance a range of affordable housing developments, from new construction to saving historic mills to preservation of expiring use affordable housing using low-interest 40-year permanent financing.
Here’s a look at MHP’s commitments and loan closings in Central Mass in FY17, which resulted in $27.5 million in financing for 434 apartments.
Fitchburg – MHP continued its support of Fitchburg’s efforts to turn its old mill buildings into new housing, closing on a $6 million permant loan for Riverside Commons Phase II. The loan – from MHP’s bank-funded loan pool – helped finance 81 affordable apartments. In 2014, MHP provided MDP with a $9 million loan to finance the 105-unit Phase 1.
Riverside Commons was developed by New Hampshire-based MDP Development. Led by Mario and Denise Plante, the company has over 40 years of experience redeveloping old mills. In this case, MDP redeveloped the U-shaped Orswell Mills, one of several old mills in an area near downtown that’s been rezoned into a mill overlay district. Built in 1886, Orswell Mills was one of the largest plants of its kind in the country, with 300 employees producing 150,000 pounds of yarn per month. In later years, it housed furniture, luggage, cotton and box manufacturers.
MHP is also providing financing for another mill in the district, Fitchburg Yarn Works, which is being developed by Winn and is opening this fall.
Fitchburg's Riverside Commons (l) and one of the interiors at the Lofts at 30 Pine in Gardner (r).Gardner – Also in FY17, MHP closed on a $1.8 million permanent loan, which supported the fourth phase of EA Fish’s efforts to preserve the landmark Heywood-Wakefield Furniture complex, which was the lifeblood of the city for many years.
Called the Lofts at 30 Pine, this phase consists of 12 one-, 36 two- and 7 three-bedroom apartments. All told, the Heywood-Wakefield urban renewal effort has resulted in 401 mixed-income apartments for families, 78 assisted living units and 48,000 square feet of commercial space.
Residents who came to the grand opening were delighted to see that the spaces where their ancestors worked to provide for their families are being put to good use.
"I remember when I was growing up hearing the whistles blow at noon meaning it was lunch time and I remember coming down here and seeing all the workers coming outside with their lunch pails," said Rachel Stephano, executive assistant to Mayor Mark P. Hawke. "My dad and uncle came up here from Philadelphia to work in 1936. I wouldn't be here if it wasn't for this place. Everyone in Gardner has a link to this place."
Lunenburg – Using its private bank funds, MHP closed on a $1.1 million long-term loan for TriTown Landing Phase III. Developed by Great Bridge Properties of Manchester N.H. through Ch. 40R smart growth zoning approved by the town, the final phase of this redevelopment of a former drive-In theater consists of 32 one-, two- and three-bedroom apartments affordable at or below 60 percent of area median income. Phase 1 features 66 apartments while Phase 2 has 33. MHP also provided a $3.8 million loan for Phase II.
Webster – Using its Treasury Risk Share Program, MHP provided WinnCompanies with a low-interest, $4.4 million 40-year loan for the refinancing of Hartley Terrace, a 54-unit affordable housing complex. The financing will allow the owner to make necessary repairs and ensure affordability for years to come.
West Boylston – Using its bank-funded loan pool and ability to provide Project Eligibility Letters to developers seeking to build through the state’s Ch. 40B comprehensive permit law, MHP has committed $7.6 million in financing to support Sajda Gardens, an 80-unit apartment development in West Boylston To be developed by Crescent Builders, the commitment was one of the final steps in the long march to construction, as the project was originally proposed in 2004 but was delayed due to foreclosure, sale to the new developer and a new round of 40B hearings to approve MHP’s role as subsidizing agency and changes to the original construction plan.
Worcester – Using its Treasury Risk Share Program, MHP has provided a low-interest, 40-year, $6.6 million loan commitment to help The Community Builders acquire and preserve the 45-year-old Fruit Sever Apartments, a 132-unit mixed-income apartment community that was in danger of being lost to market after the expiration of its HUD 236 affordability requirements. MHP’s financing – in combination with federal and state housing tax credits, city funds and acquisition financing from CEDAC – will enable TCB to make necessary repairs to the 96-unit 10-story building of one- and two-bedroom apartments, and the four three-story buildings nearby, which feature 30 three-bedroom and six-four-bedroom apartments for families. The financing will extend Fruit Sever’s affordability for at least 20 years, or until the 40-year MHP loan is paid off.
About MHP: MHP uses private bank funds and other capital sources to provide long-term financing for the creation and preservation of affordable rental housing.
Statewide in FY 2017, MHP provided over $91 million in commitments for the financing 1,600 apartments, over 1,000 of them affordable. In addition, MHP closed over $106 million in loans for the financing or refinancing of over 1,800 apartments.
For more details, check out MHP’s Multifamily Financing Interest Rate Tracker, which has terms and interest rates updated weekly for Treasury Risk Share, Fannie Mae Fixed, Fannie Mae Variable, FHA MAP and MHP Private Bank Funds.
For more information, contact Director of Lending David Rockwell at drockwell@mhp.net or 857-317-8550 or Senior Relationship Manager Nancy McCafferty at nmccafferty@mhp.net or 857-317-8556.
More FY17 reviews:
Boston area - MHP preserves 496 affordable apartments
Boston - MHP finances +400 new units
Metro Boston - New apts in Brookline, Revere, Somerville ...
Suburbs - 693 apartments financed, many through 40B
SE Mass/Cape - 9 developments, 469 apartments financed
Springfield: Featuring scattered site financings to keep neighborhoods strong
WMass: Supporting new homes for rural seniors & restoration of historic buildings