MassHousing Provides Financing for Massachusetts Affordable Project

The 85-unit property will undergo extensive renovations.

MassHousing has closed on a $9.6 million financing for The Aurora, an 85-unit affordable housing community in Worcester, Mass. The Community Builders will use the financing for renovations at the property.

The Aurora
The Aurora will serve extremely low-income individuals and those transitioning from homelessness. Image courtesy of MassHousing

The Community Builders acquired the Aurora Apartments for $3.9 million, according to BLDUP. The owner plans to invest approximately $10.8 million in renovations of the units, building systems and infrastructure such as the restoration of historic elements, new heating, cooling and ventilation systems, a new suite for on-site staff, security improvements and a new community room.

Keith Construction is the general contractor on the project, with Architecture Environmental Life having been brought on as the architect and TCB as the management agent.

All 85 units at the property will remain affordable for at least 20 years and will serve individuals earning up to 60 percent of the area median income, while a total of 25 units will be subsidized by the Massachusetts Rental Voucher Program and reserved for tenants earning up to 30 percent; 22 units will be restricted to households earning up to 50 percent; 33 units to households earning up to 60 percent; and five units will be reserved to households earning up to 30 percent and supported by the federal Section 811 program for disabled individuals.


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Initially built as The Aurora Hotel back in 1898, the six-story building was converted to housing in the 1980s. Common-area amenities include a clubhouse, laundry facilities, an elevator, controlled access and approximately 15 parking spaces.

Located at 660 Main St., The Aurora is within Worcester’s Central Business District. The community is situated in an Opportunity Zone, within walking distance of St. Vincent Hospital, Elm Park and Worcester Public Market.

Financing Massachusetts’ affordable housing

The financing for the rehabilitation project of affordable community include:

  • $1.6 million in permanent and construction tax-exempt financing and $8 million in tax-exempt bridge financing provided by MassHousing
  • $6.76 million of equity from the allocation of Low Income Housing Tax Credits by the Massachusetts Executive Office of Housing and Livable Communities 
  • $5.3 million in direct support from EOHLC
  • $2.46 million in federal Historic Tax Credit equity
  • $640,500 from the sale of state historic credits
  • a $3.8 million seller note
  • $350,000 in Worcester HOME funds
  • $460,000 awarded by the Community Economic Development Assistance Corporation through the Massachusetts Department of Mental Health

Raymond James Affordable Housing Investments is the tax credit syndicator for the project, while Dorfman Capital is the broker for the state historic credits. 

MassHousing has recently provided $19.2 million for the redevelopment of Cape Cod Five Bank’s former operations center in Orleans, Mass., into affordable and workforce housing. The company funded the project with $15.4 million in tax credit equity bridge financing, $2.8 million in permanent financing and $1 million through its Workforce Housing Initiative. 

At the beginning of this year, WinnCos. secured $21 million for the construction of a 93-unit workforce housing community in Shrewsbury, Mass. MassHousing provided the funds which encompass $10.3 million in permanent financing, $7.9 million in tax credit equity bridge loan financing and $2.8 million through the Agency’s Workforce Housing Initiative.