Partner Profile: TCB, a leader in the ownership and management of affordable homes

Partner Profiles is a periodic series by MHP that takes a look at people and organizations that are creating affordable housing and making their communities stronger

MHP’s motto is Affordable Homes, Better Lives. The Community Builders (TCB) understands The Power of Home. A partnership spanning over 25 years is a testament to the shared vision and values between the two organizations.

TCB is one of the nation’s largest nonprofit developers and a leader in the ownership and management of affordable homes with developments and community initiatives across 16 states and Washington, D.C. Since its founding in 1964, TCB has made enormous strides in achieving its mission “to build and sustain strong communities where all people can thrive” by developing over 14,000 apartments in more than 150 communities across five broader regional networks.

Since 1999, MHP has provided TCB with over $23 million in long-term financing to develop and preserve 585 affordable homes and is proud to continue the collective effort to provide a robust, resilient, and resident-centered affordable housing stock across Massachusetts.

"We are thrilled to have worked with TCB for all these years on cutting edge, affordable housing developments," said MHP Executive Director Clark Ziegler. "We look forward to continuing our collaboration with TCB on community-centered development for years to come."

“The Community Builders is advancing housing opportunity across Massachusetts, thanks to our partnership with MHP,” said Bart Mitchell, TCB president and CEO. “TCB greatly appreciates MHP’s innovative investments that help us advance equity by developing and preserving stronger communities where all people can thrive. We’re proud of the progress we’ve made with MHP and look forward to another 25 years of partnership.”

Community Life/Resident Services

Recognizing that meeting housing demand is not enough, TCB also invests in resident-led community initiatives and building partnerships to create pathways to opportunity for residents. TCB’s Community Life model is a place-based, resident-centered approach that builds on housing as a platform to advance equity and opportunity for residents. Community Life initiatives include early education, youth development, economic mobility, voter registration, job training, healthy living and wellness programs.

TCB’s model has been developed to target multiple levels of impact, starting from the resident to the TCB community to the broader neighborhood. Since 2014, TCB has expanded Community Life from 6 to 40 sites to significant, proven, and repeated success. As of 2023, 70% of households with rent reporting for credit building have improved credit scores and 99% of families at the risk of eviction remained stably housed with coaching.

Treasury Risk Share experience, attractive terms

Of the $23 million provided to TCB, over 2/3 of the funds (just over $16 million) have been executed with MHP’s successful FHA Federal Financing Bank (FFB) Risk Sharing Program. This execution offers attractive terms, long-term fixed financing up to 40-year amortization, and a forward rate-lock of up to 36 months through an innovative interest rate swap program. The Risk Share Program provides the lowest interest rates on long-term, fixed-rate multifamily housing loans currently available in the marketplace. MHP, as a housing finance agency, has been an FHA Risk Sharing lender since 2015 and boasts a strong record of closing well-capitalized, high-quality deals.

TCB has utilized MHP's Green and Healthy Housing Programs, along with the enterprising forward rate lock program, to great advantage in several of its developments including Sever Square Apartments/Merrick at the Square in Worcester, Lyman Terrace in Holyoke, and The Clarion in Boston.

Sever Square Apartments & Merrick at the Square, Worcester

Sever Square Apartments is an essential rehabilitation effort for the preservation through the Massachusetts 40T program of 132 existing, affordable apartments close to downtown Worcester’s Pleasant Street neighborhood. Originally built in 1972, in 2015 these apartments were at the risk of being converted to market-rate housing with the HUD Section 236 restrictions nearing expiration. Encompassing a mix of 1-, 2-, 3-, and 4-bedroom apartments, these apartments provide much-needed affordable housing options for low- to moderate-income households. Apart from 14 market-rate apartments, the rest of the apartments are restricted to households making up to 30% AMI and up to 60% AMI.

MHP provided $6.6 million in permanent financing to enable TCB to not only preserve the long-term affordability of the apartments but also broaden the scope of work beyond preservation. The addition of two units increased the total number of apartments to 134, while in-unit upgrades, community space renovation, and the retrofitting of seven apartments for full accessibility increased resident comfort. The in-unit upgrades and new mechanical systems also led to improvements in energy efficiency. A resident services coordinator and TCB’s partnerships with UMass Memorial, Worcester Senior Center, and other local nonprofit organizations help provide programs for the residents. TCB’s efforts on Sever Square reflect its commitment to the preservation of affordable housing, the early adoption of energy efficiency retrofits, and boosting resident engagement through program offerings.

Adding to Sever Square Apartments, TCB plans to utilize a vacant lot adjacent to the existing development to construct a new transit-oriented, green, amenity-rich development that will house 49 new apartments, all of which will be affordable for households at or below 60% of AMI. The project, which is currently in construction, will include a mix of studios, 1- and 2-bedroom apartments, and a new communal play area to beautify and strengthen the Pleasant Street neighborhood. The development has been designed to meet Enterprise Green Communities standards. In addition to providing high-quality, green and healthy housing, TCB will also add to its Worcester-based Community Life model at both communities. A community life service coordinator will manage programs, including after school programming, community engagement events, and volunteer/leadership opportunities.

MHP has committed $3.2 million under its FHA-FFB Risk Sharing program and has utilized its innovative interest rate swap program to provide a forward rate lock for the development.

Lyman Terrace

Continuing its strong presence in preservation, TCB spearheaded an extensive two-phase rehabilitation of the deteriorating public housing complex, Lyman Terrace in Holyoke. In addition to keeping the hundreds of residents in place, TCB’s improvements to the development included an expansion of the square footage for the units, a playground designed based on community feedback, and a community center that hosts various programming opportunities for the residents. These design features were a major aspect of Lyman Terrace’s Fitwel application, but other significant features included safe street infrastructure, open spaces, childcare facilities, community gardens and access to fresh and locally grown produce.

In addition to its early technical assistance in finding a solution to save the property, MHP provided a $4.3 million loan for Phase 1 and a $5.3 million loan for Phase 2. Lyman Terrace is the first development to receive MHP's interest rate discount for incorporating healthy features into its project. It remains a landmark project.

In recognition of its excellence, Lyman Terrace was awarded a Charles L. Edson Tax Credit Excellence Award in HUD’s Preservation category (2021) and an Affordable Housing Finance Reader’s Choice Award (2021). Read more about the remarkable story of Lyman Terrace here.