MassHousing Provides $24M Loan for Boston-Area Asset

The agency closed on the tax-exempt financing for a recently built 108-unit mixed-income community in Chelmsford. The transaction involved the use of recycled private activity volume cap.
Mill and 3 Apartments
Mill and 3 Apartments

Princeton Properties and Parse Capital received $23.6 million in affordable housing financing for Mill and 3 Apartments, a 108-unit, mixed-income community in Chelmsford, Mass. MassHousing provided the loan for the recently built property.

Located at 276 Mill Road, the three-building property is right off Route 3 and near several shopping, dining, and entertainment options. A fifth of the units will be affordable in perpetuity to households earning at or below 50 percent of $52,700, which is the area’s median income for a family of four. Mill and 3 Apartments consist of 46 one- and 62 two-bedroom apartments, built by general contractor NRP Construction under Chapter 40B.

MassHousing provided the owner with a tax-exempt permanent loan by issuing short-term, variable-rate revenue bonds and using recycled private activity volume cap. “MassHousing is one of only a handful of housing finance agencies in the U.S. to have executed a complex financing transaction like this,” said MassHousing Executive Director Chrystal Kornegay, in a prepared statement.

Previously, the agency financed three other Princeton Property developments: Princeton Westford in Westford, Mass., Princeton Boston Road in Billerica, Mass., and Princeton Commons in Chelmsford. In April, MassHousing also arranged $28.8 million in financing for the development of Pac 10 Lofts, a 180-unit affordable housing community in Lawrence, Mass.

Image courtesy of MassHousing