MassDevelopment announced last week the closing of a low-cost financing package for an affordable senior housing construction and preservation project. The Somerville Housing Authority will use the proceeds from a $14 million tax-exempt bond to demolish an outdated 64-unit apartment complex for the seniors and the disabled, and construct a new 95-unit affordable housing facility on the site. MassDevelopment also allocated low-income housing tax credits to the project and other announced projects that generated a combined $4.9 million in additional equity to support the renewal efforts.
The Somerville Housing Authority loan commitment was financed through MassDevelopment’s Massachusetts Tax-Exempt Credit for Housing Program (MATCH), which it offers in partnership with the Massachusetts Housing Partnership (MHP). MATCH combines MassDevelopment’s ability to issue bonds with MHP’s ability to use its bank-funded loan pool to provide crucial letters of credit, which give the bonds a AAA-rating and enable borrowers to get financing at the lowest-possible interest rate. Since this program was created in 2002, MATCH has provide over $42 million in loans and commitments for the financing of almost 800 units of rental housing.
“As families face tough economic times and difficult decisions about how to spend their hard-earned dollars, the ability to provide low-cost financing to support the preservation of affordable housing stock becomes more important than usual,” said Robert L. Culver, MassDevelopment president/CEO. “These bonds are making it possible to revitalize 64 units of affordable housing that might otherwise have reverted to market-rate uses or fallen in to disrepair.”
For the full press release, click here.