Affordable Massachusetts Property Lands $23M Loan
MassHousing closed on the financing, which will allow Maloney Properties to undertake substantial renovations at the 50-year-old community and extend its affordability.
MassHousing has provided a $22.7 million loan for Holyoke Farms, an affordable housing property in Holyoke, Mass. The financing will enable Maloney Properties to initiate significant renovations and extend the property’s affordability for at least another 50 years. Currently, the community has 225 units, but eight of them will be demolished and replaced with 12 new apartments. Kaplan Construction is the contractor and Guzman Prufer the architect of the project.
Located at 87 Farnum Drive, the property is close to Interstate 91, Holyoke Shopping Center and Holyoke Mall. Built in 1969, the 32-building asset encompasses two- and three-bedroom townhouses, according to Yardi Matrix data. Planned property improvements include site paving, building envelope upgrades, bathroom renovations and building systems efficiency upgrades.
Following the rehabilitation, the community will include 12 accessible, one-bedroom units for the elderly and disabled residents, 111 two- and 106 three-bedroom apartments. Sixteen of them will be subsidized for households earning at or below 30 percent of the area’s median income and 168 will be affordable for families making 60 percent or less of the area’s median income, which in Holyoke is $76,000 for a family of four.
MassHousing provided a $12.2 million permanent loan and $9.9 million in bridge financing. The transaction involved $12.5 million in tax credit equity financing, generated by an allocation of low-income housing tax credits by the Massachusetts Department of Housing and Community Development, which also allocated another $4.5 million in direct support. Other funding sources come from a $12.2 million seller note and $250,000 in HOME funds from the City of Holyoke. The use of the tax credits will result in the extension of affordability on 191 units, with the property’s remaining 38 units to be rented at market rates.