BOSTON – MassHousing has provided a Pennant Housing Group subsidiary with $ 9.9 million in affordable housing finance to purchase, renovate and maintain 89 units of Colonial Village Apartments in Weymouth, MA.
The transaction will remove an expired long-term affordability constraint and preserve the 89-unit property home to low-income seniors for at least 15 years.
“MassHousing was pleased to partner in a transaction that will ensure seniors living in the Colonial Village continue to pay the rents they can afford and stay in their homes,” said Chrystal Kornegay, Executive Director of MassHousing. “The new owner of the property was keen not only to maintain and add to the affordability of Colonial Village, but also to carry out renovations that improve the comfort and safety of residents.”
MassHousing is backing the transaction with $ 9.9 million in tax-exempt obligations through the agency’s conduit loan program. The proceeds will be used to fund construction and permanent loans in partnership with Greystone Servicing Company LLC. The MassHousing funding also brought in $ 3.7 million
The Massachusetts Department of Housing and Community Development (DHCD) supported the preservation of the Colonial Village by providing $ 6.3 million in capital improvement funding. MassHousing also provided Pennant Housing Group with $ 945,361 in Section 13A Tenant Protection Fund.
“Pennant Housing Group is excited to work with MassHousing and DHCD to maintain the Colonial Village Apartments. Through our efforts and the private capital resources provided by our equity and funding partners, we are able to sustain this community for the low-income elderly of Weymouth both physically and affordable. We look forward to continuing to work with MassHousing and DHCD on future projects, ”said Andrew Agetstein of Pennant Housing Group.
The financing by MassHousing and DHCD dissolves the expired rent subsidy under Section 13A in the Colonial Village and prevents the property from possibly being converted into rents in line with the market.
The Commonwealth’s Section 13A program was established by the Massachusetts legislature in the 1970s to provide low-interest mortgage finance to affordable housing communities. Today, 13A parishes serve some of the lowest-income and most vulnerable populations in Massachusetts, including many elderly residents. The mortgages for these 13A shared apartments are near or near maturity.
In response, MassHousing and DHCD have committed a total of $ 100 million in capital to obtain affordable 13A units that would otherwise be converted to market prices. The Colonial Village refinancing transaction removes the expiring rent subsidy under Section 13A for all 89 units of the property.
Located near the Greenbush Commuter Rail Line and the Tufts Library in Weymouth, the 89 units of the Colonial Village are housed in a mid-rise building and consist of 82 one-bedroom apartments and 7 two-bedroom apartments. Colonial Village was developed in 1971 under the Section 13A program.
Based on the incomes of the existing residents, 79 of the 89 dwellings are restricted to households with an income equal to or below 60 percent of the area median income (AMI). In addition, 23 of the units are supported by a rental subsidy contract for the Massachusetts Rental Voucher Program. The AMI for Weymouth is $ 113,300 for a household of four.
Property improvements include kitchen and bathroom upgrades, security systems upgrades, and water infiltration repairs.
The general contractor is NEI General Contracting. The architect is Kaas Wilson Architects and the management agent is Arco Multifamily Management.
MassHousing has financed two rental communities in Weymouth for a total of 393 units with an original loan amount of $ 29 million and the agency has also made mortgage loans to 1,122 home buyers and homeowners in Weymouth for an original purchase price of $ 169.2 million.
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