Abrams Development Acquires Boston Affordable Housing Property
- Jul 30, 2014
Boston—The Abrams Development Co. has inked a deal to acquire the 71-unit Lionhead Apartments in Dorchester district of Boston. As a condition of $9.3 million in MassHousing loans to finance the transaction, the new owner has executed a 20-year extension to the property’s Section 8 Housing Assistance Payment contract.
Overall, the property’s affordability has been extended even longer than that. It will be affordable for 30 years as a condition of the use of Low Income Housing Tax Credits, which generated nearly $6 million in equity for the acquisition and renovation of the property. MassHousing provided a $7.1 million construction and permanent loan and a $2.2 million bridge loan.
The Lionhead Apartments were converted to housing in 1971 with MassHousing financing. Located in two six-story masonry buildings at 713 Dudley St. and 3 Monadnock St. in Dorchester, the structures were built in the late 19th century as apartment hotels.
The property includes 22 one-bedroom units and 49 two-bedroom units. Planned improvements include repointing of masonry, replacing of roof membranes and skylights, flooring replacement in apartments and common areas, and water and waste pipe replacement. The new owners will also do HVAC repairs and energy improvements, fire suppression upgrades to the apartments and replacement of appliances in the units. There will be asbestos abatement and upgrades to bring common areas into compliance with current accessibility standards.
The Abrams Development Co., an affiliate of the Abrams Management Co., is a woman-owned firm specializing in affordable housing, with recent experience in Section 8 project-based subsidy, Low-Income Housing Tax Credits, and Historic Tax Credits. Earlier work included Federal 221(d)3 and Section 236 programs, as well as the Massachusetts 13A program. MassHousing is a quasi-public agency created in 1966 and charged with providing financing for affordable housing in the commonwealth.