MassHousing Announces $14.9 Million in Loan Closings to Preserve Affordable Housing for Senior Citizens and Families in Framingham and Lawrence
260 units will remain affordable at the Framingham Green and Valebrook Apartments
BOSTON, MA – April 8, 2011 – (RealEstateRama) — MassHousing announced $14.9 million in loan closings today to preserve affordability at the 110-unit Framingham Green Apartments in Framingham and the 150-unit Valebrook Apartments in Lawrence, which were in danger of converting to market rate rents.
MassHousing loaned $6.1 million to an affiliate of E.A. Fish Associates to refinance Framingham Green, an affordable apartment community for senior citizens. As part of the terms of MassHousing’s loan, the owner will seek to extend the Section 8 Housing Assistance Payment (HAP) contract for all the apartments at Framingham Green for the longest term possible, typically 20 years.
MassHousing loaned $8.8 million to an affiliate of Cambridge Development Corporation to refinance the Valebrook Apartments, an affordable apartment community for families in Lawrence. The owner renewed the Section 8 HAP contract on all 150 units at Valebrook Apartments for 20 years in July 2010.
Both communities are being refinanced through MassHousing’s Section 8 Proactive Preservation Program, which seeks to extend affordability at MassHousing-financed developments where Section 8 HAP contracts are due to expire and the apartments could be rented at market rates. The HAP contract at Framingham Green expires in February 2014 and the original MassHousing loan matures in June 2014. The MassHousing loan for Valebrook apartments matured in July 2010.
“Framingham Green and Valebrook Apartments are just two of many affordable apartment communities in Massachusetts that are reaching the ends of their original mortgages and are in danger of converting to market rates,” said MassHousing Executive Director Thomas R. Gleason. “Refinancing these valuable affordable housing resources so they remain accessible to working families and seniors is a major priority for us. By closing these loans, we have helped preserve 260 quality affordable apartments for residents in Framingham and Lawrence.”
Built in 1984, Framingham Green consists of 28 studio and 82-one-bedroom apartments in five two-story building located at 136 Maynard Road in Framingham. A capital improvement escrow will be established to fund property renovations that include window replacement, kitchen and bathroom upgrades and HVAC replacement. The management agent is Peabody Properties, Inc. of Braintree.
The Valebrook Apartments were built in 1980 in two mid-rise and three townhouse buildings at 9-11 Summer St. in Lawrence. The development contains one, two, three and four-bedroom units. The management agent is the Shoreline Corporation.
About the MassHousing Section 8 Proactive Preservation Program
The Section 8 Proactive Preservation Program targets 61 affordable rental developments that were originally financed by MassHousing and are eligible to convert to market rate in the next few years. Each of these developments receives a subsidy from HUD that is used to help pay the tenants’ rents each month. However, if the mortgage is paid off, there are no more affordability restrictions or any incentives from HUD to keep the properties affordable unless the owner agrees to renew the Section 8 contract. Through this program, MassHousing now provides those incentives.
About MassHousing
Celebrating its 45th anniversary, 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 $13 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.
Contacts
Eric Gedstad: 617.854.1079 | egedstad (at) masshousing (dot) com
Tom Farmer: 617.854.1843 | tfarmer (at) masshousing (dot) com
