By Laura Calugar
MassHousing has obtained $10.6 million in financing for the acquisition, renovation and preservation of 111 units in East Boston. East Boston Community Development Corp. owns Landfall Community Associates, which comprises five low- and mid-rise buildings across scattered sites. The transaction refinances two affordable housing communities—the 15-unit Landfall Apartments and the 96-unit East Boston Rehab portfolio. The deal is set to extend affordability at Landfall for at least 15 years.
Located at 72 Marginal St., 12 Seaver St., 265 and 350 Meridian St., and 186-192 Cottage St., the properties serve working Boston families. The financing is slated to resolve the expiring affordability restrictions from the Section 13A mortgage on the 96 East Boston Rehab units. The Department of Housing and Community Development is providing $1 million in financing toward the 13A preservation at Landfall.
The financing deal is complex, with MassHousing securing a $5.7 million permanent loan, a $4.7 million bridge loan and a capitalized 13A payment loan of $134,401. The transaction also includes a $7.1 million seller note, a $501,188 deferred developer fee and $323,000 in operating income. The MassHousing financing generated $5.8 million in equity through federal Low-Income Housing Tax Credits.
Substantial rehabilitation planned
The owner of the two properties intends to renovate all kitchens and bathrooms, replace and refurbish all windows, repair the buildings’ flooring, brick and masonry, as well as upgrade the fire alarm systems and part of the roof. The general contractor will be Knollmeyer Building Corp., the architect is Davis Square Architects and the management agent is Metro Management.
Of the 111 units, 107 are reserved for residents earning 60 percent or below of the area’s median income, which is $60,020 for a family of four in East Boston. Four of the apartments will be rented as market rate. Moreover, 15 of the units are subsidized through a federal Section 8 housing assistance payment contract and 24 of the units are subsidized through the Massachusetts Rental Voucher Program.
Recently, MassHousing also provided financing for the rehabilitation and preservation of the historic 180-unit Wellington Community in Worcester, Mass.
Image via Google Street View