Massachusetts Workforce Development Lands Financing
- Apr 30, 2020
The Community Builders and Valley Community Development Corp. have received $2.8 million in financing from MassHousing for the construction of 35 Village Hill Road, a 12-unit affordable community underway in Northampton, Mass.
The workforce housing development is part of Village Hill at Northampton, a 65-unit mixed-income community coming online on the site of the former Northampton State Hospital. General contractor Western Builders and architect Davis Square Architects are part of the project’s development team. Completion is slated for September.
The community will encompass 10 units for moderate-income households, four of which to be reserved for families earning at or below 80 of the area’s median income. The other six will be deed-restricted for households earning at or below 120 percent of the area’s median income. Two deeply affordable units will be set aside for clients of the Massachusetts Department of Mental Health and supported by Section 8 project-based vouchers.
The building at 35 Village Hill Road will have ground-floor retail. The unit mix will feature two studios, six one-bedroom apartments and four two-bedroom apartments. TCB will manage the community upon its completion.
The property is some 2 miles south of the city center, near the Department of Mental Health and the Smith College campus. There are various retail and dining options less than 2 miles east of the development site, alongside U.S. Route 5.
Multiple sources of financing
MassHousing provided $1.4 million in permanent financing and $1.4 million in workforce housing funds from the Workforce Housing Initiative. In addition, the Massachusetts Department of Housing and Community Development secured the project-based vouchers and $1.5 million in direct support. Another $1.3 million came from the Community Scale Housing Initiative, a partnership between DHCD and MassHousing providing funds for smaller-scale affordable rental developments.
Other financial partners include Citizens Bank, which provided a $2.5 million construction loan. The Community Economic Development Assistance Corp. and the City of Northampton also contributed.
In January, a 48-unit mixed-income development in Brockton, Mass., received $4.7 million in construction financing. MassHousing was one of the main contributors.