Affordable South Boston Community Receives $33M Loan
MassHousing closed on the financing, as Madison Park Development Corp. aims to extend Haynes House’s affordability and begin significant renovations at the 131-unit property.
Madison Park Development Corp. has obtained a $33.1 million loan for preserving the affordability of Haynes House. The 131-unit community in Roxbury, Mass., will also undergo a rehabilitation process.
MassHousing is providing MPDC with a $9 million construction and permanent loan, a $21.4 million bridge loan and $2.7 million from an opportunity fund, as part of the effort to refinance Haynes House following the maturation of the Section 13A loan. The transaction also includes $17.2 million in federal low-income housing tax credit equity from the Massachusetts Department of Housing and Community Development, $4.3 million in Section 13A financing from DHCD, a $13.3 million seller note and a $1.7 million deferred developer fee.
Located at 735 Shawmut Ave., the building is within a 20-minute drive of downtown Boston. MPDC plans to invest $20 million in significant property improvements, which are set to include building envelope and facade renovation, apartment and common area upgrades and the construction of accessible apartments.
Haynes House features 26 one- and 105 two-bedroom apartments, built in 1974. Following the restoration, 16 of them will be occupied by low-income households earning at or below 30 percent of the area’s median income, which in Boston is $107,800 for a family of four, 89 apartments will be set aside for households earning at or below 60 percent of the AMI and 19 apartments will be for households earning at or below 80 percent of the AMI. Seven apartments will be rented at market rates.
Dellbrook Construction is the general contractor for the renovation works and Davis Square Architects is the architect. Winn Residential serves as the property manager. Recently, MassHousing closed on $35.8 million in financing for the redevelopment of the former Worcester County Courthouse into a 117-unit affordable housing community in Worcester, Mass.