Boston Capital Invests $16M Tax Credit Equity for Affordable Housing Rehab
- May 21, 2010
Somerville, Mass.-Boston Capital has invested $16 million in Clarendon Hill Towers, a 501-unit multifamily development in Somerville, Mass. Boston Capital provided the tax credit equity for the development and partnered in the rehabilitation with the Clarendon Hill Towers Tenant Association and Connolly & Partners.
Located on a six-acre site, Clarendon Hill Towers will include the rehabilitation of three, 12-story, high-rise buildings featuring 249 one-bedroom, 216 two -bedroom and 36 three-bedroom units.
Development amenities include a central laundry area in each building, individual storage areas, a kitchen with snacks and meals for purchase, a computer room and an exercise room. The property offers supportive services for residents’ children and is adjacent to a community playground, a large park and a grocery store.
Renovations will include common area renovations, unit improvements such as new cabinets and appliances and significant upgrades to the underground parking structure and open parking spaces. A new community building will feature new leasing and management offices. The proposed rehabilitation will total nearly $46,000 per unit in total construction costs. Clarendon Hill Towers will be available to residents at 60 percent or less of the area median income (AMI).
The development’s new, gold-LEED certified community building will feature materials that emit low volatile organic compound (VOC) content, maximize daylight and natural ventilation and use shading devices and light shelves to reduce solar heat gain. Units will include new, energy-efficient appliances and low-flow toilets.
The rehabilitation of Clarendon Hill Towers will also feature the installation of a cogeneration system designed to recover waste heat from the electrical generator to produce hot water.
Estimates show that cogeneration operates with 10 to 30 percent less fuel than it takes to produce electricity and process heat separately, further reducing energy consumption.
In addition to $16 million in equity financing provided by Boston Capital, MassHousing provided the construction and permanent financing. The Department of Housing and Community Development (DHCD) provided the 4 percent tax credits and $2 million in Capital Improvement and Preservation Funds and the City of Somerville contributed $245,000 in HOME funds.