Abandoned Worcester Factory to be Converted into 94 Affordable Apartments with $17 Million in MassHousing Loans
Financing will involve Phase I and II of the Worcester Loomworks
BOSTON – August 19, 2014 – (RealEstateRama) — An abandoned factory building in Worcester will be converted into 94 new affordable apartments as a result of $17 million in MassHousing loans.
The financing is for Phase I and II of the Worcester Loomworks, which is being developed by The Community Builders of Boston (TCB).
MassHousing has closed on a $5.5 million tax-exempt bridge loan and a $1.3 million tax-exempt construction-permanent loan for Phase I, which involves the construction of 39 new apartments. Phase I also received $1 million from the Affordable Housing Trust Fund, which is managed by MassHousing on behalf of the state Department of Housing and Community Development (DHCD).
MassHousing closed on a $9.3 million taxable bridge loan and a $1.1 million taxable construction-permanent loan for Phase II, which involves the construction of 55 new apartments.
Located on a 1.7-acre site at 93 Grand St. in the Main South neighborhood of Worcester near Clark University, the Loomworks was built in 1890 to manufacture textile looms. TCB purchased the five-building property from the Main South Community Development Corporation and will demolish three unusable portions of the mill and redevelop the property in a 94-unit apartment community.
“The Worcester Loomworks is an important project for the Main south neighborhood of the city,’’ said MassHousing Executive Director Thomas R. Gleason. “A once blighted and abandoned mill is going to be transformed into a vibrant housing community for low-income residents and some families with special needs.’’
The 39 apartments in Phase I will consist of 19 one-bedroom apartments, 17 two-bedroom apartments and 3 three-bedroom apartment. Four of the apartments will be set aside for households with special needs.
The 55 apartments in Phase II will consist of 32 one-bedroom apartments and 23 two-bedroom apartments. Four of the apartments will be set aside for households with special needs.
“The Community Builders is proud to deepen our long-time commitment to the City of Worcester with the redevelopment of the Loomworks site,” said Bart Mitchell, TCB president and CEO. “Worcester Loomworks will provide quality affordable housing for dozens of families and bring good construction jobs to the area.”
The project is also receiving financing from the sale of state and federal Low-Income Housing Tax Credits, DHCD and the city of Worcester.
The contractor will be Dellbrook Construction and the architect is The Architectural Team. The management agent will be TCB.
Construction started in July and is expected to be completed next summer.
About The Community Builders
The Community Builders, Inc. (TCB) is the leading nonprofit developer of mixed-income housing in the United States. Their mission is to build and sustain strong communities where people of all incomes can achieve their full potential. They pursue their mission by developing, financing and operating high-quality housing and implementing neighborhood self-help initiatives to drive economic opportunity for our residents. Since 1964, TCB has constructed or preserved over 320 affordable and mixed-income housing developments and secured over $2.5 billion in project financing from public and private sources. They own or manage more than 10,000 apartments in 14 states and Washington, D.C. We are headquartered in Boston with regional hubs in Chicago and Washington.
About MassHousing
MassHousing (The Massachusetts Housing Finance Agency) is an independent, quasi-public agency created in 1966 and charged with providing financing for affordable housing in Massachusetts. The Agency raises capital by selling bonds and lends the proceeds to low- and moderate-income homebuyers and homeowners, and to developers who build or preserve affordable and/or mixed-income rental housing.
MassHousing does not use taxpayer dollars to sustain its operations, although it administers some publicly funded programs on behalf of the Commonwealth. Since its inception, MassHousing has provided more than $17 billion for affordable housing. For more information, visit the MassHousing website at www.masshousing.com, follow us on Twitter @MassHousing, subscribe to our blog and Like us on Facebook.
Media Contacts
Eric Gedstad: 617.854.1079 | egedstad (at) masshousing (dot) com
Tom Farmer: 617.854.1843 | tfarmer (at) masshousing (dot) com
