MassHousing Secures $12M for Affordable Asset

More than $1 million are earmarked for property improvements.

St. Mary’s Plaza. Image courtesy of MassHousing

MassHousing has closed on a $12.4 million loan for the refinancing and preservation of St. Mary’s Plaza, a 99-unit age-restricted and fully affordable housing community in Lynn, Mass.

The loan came through the Multifamily Accelerated Processing/Ginnie Mae joint venture initiative, with Rockport Mortgage Corp. as lending partner. The MAP/Ginnie Mae program is offered through HUD, which uses FHA insurance approvals through the MAP program. Borrowers are able to access mortgage financing with lower interest rates through the Ginnie Mae guarantee and FHA insurance combination.

The community got a new, 20-year HUD Section 8 Housing Assistance Payment contract. The 35-year permanent loan provided by MassHousing will extend St. Mary’s Plaza affordability for at least 25 years. Approximately $1.4 million will be used for adding improvements to the property.

According to Yardi Matrix data, the property previously became subject to two other HUD loans originated by the Massachusetts Housing Finance Agency. The loans were provided in 2015 and 2004, for about $6 million each.

Adaptive reuse project north of Boston

Converted to apartments in 1981 through the conversion of St. Mary’s grammar school building, the community encompasses one- and two-bedroom units ranging between 565 and 690 square feet. The community offers laundry facilities, a community room, elevators, parking spaces and controlled access. The improvements will include new Energy STAR appliances, sewer and water line repairs, snow guard replacement and new roofing.

St. Mary’s Plaza is located at 30 Pleasant St., in an Opportunity Zone. The community is only 10 miles outside of Boston. There are many dining options, green areas and retail centers nearby. Lynn Metro Station and North Shore Community College are within a 1-mile radius.

Recently, MassHousing provided $13.5 million in financing for the preservation of affordability and renovation of Riverside Towers. The 199-unit, age-restricted community is located in Medford, Mass.

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