BOSTON – MassHousing has offered a complete of $18 million in reasonably priced housing financing to the non-profit Retirement Housing Basis (RHF), and its improvement guide, the Schochet Corporations, for the refinancing, preservation of affordability and renovation of the 100-Unit Hillcrest Acres Residences in Attleboro.
RHF, in partnership with the Schochet Corporations, bought Hillcrest Acres in July 2020, at a time when the property was at risk of changing to market-rate housing. This financing transaction will guarantee long-term affordability protections stay in place on the property, and that vital capital wants there are addressed. RHF plans to finish roughly $9.9 million in property enhancements.
“This possession group stepped as much as purchase Hillcrest Acres at a time when the property was at risk of dropping its affordability, and now they’ll make sure that the property is a supply of secure, trendy reasonably priced housing for a few years to return,” mentioned MassHousing Govt Director Chrystal Kornegay. “MassHousing was very happy to work with RHF and Schochet to protect this reasonably priced housing useful resource in Attleboro, the place lower- and moderate-income residents will proceed to take pleasure in housing stability and financial alternative.”
MassHousing offered the possession group with a $7 million tax-exempt building and everlasting mortgage, a $7.2 million bridge mortgage, $2.7 million from the Company’s Workforce Housing Initiative, and $1 million in extra financing from the CDFI Fund’s Capital Magnet Fund.
Different financing sources included $9.6 million from an allocation of Low Revenue Housing Tax Credit by the Massachusetts Division of Housing and Group Improvement (DHCD), $4.2 million in direct assist from DHCD, and a $1.4 million sponsor be aware. The tax credit score investor was R4 Capital.
“RHF is dedicated to preserving essential reasonably priced housing and Hillcrest Acres is a main instance of that effort, mentioned Stuart Hartman, RHF’s President and CEO. “This effort will make sure that Hillcrest Acres will serve the individuals on this group for many years to return.”
RHF and Schochet acquired Hillcrest Acres in 2020 by means of Chapter 40T, a state legislation designed to assist stop reasonably priced housing from being bought and transformed to unrestricted rents. The Group Financial Improvement Help Company (CEDAC) offered an $8.4 million acquisition mortgage for the transaction.
“We’re so appreciative of the efforts of all concerned in serving to us to shut this difficult two-step transaction. First CEDAC, who offered us with capability to initially protect this essential asset in 2020, after which MassHousing, DHCD and R4, who ensured that we will do substantial rehab whereas preserving these items in glorious situation for the long run,” mentioned Richard J. Henken, President and CEO of the Schochet Corporations.
As a part of the housing preservation transaction, RHF will undertake intensive web site work enhancements at Hillcrest Acres, together with toilet renovations, the set up of recent kitchen home equipment, the creation of accessible items, and structural enhancements to roofs and balconies.
Positioned at 1101 Hillside Ave. in Attleboro, Hillcrest Acres has 16 one-bedroom flats, 72 two-bedroom flats, and 12 three-bedroom flats. 13 of the items are restricted to households incomes as much as 30 % of the Space Median Revenue (AMI), with eight of these items supported by the Massachusetts Rental Voucher Program. Nineteen items are restricted to households incomes as much as 50 % of AMI, 33 items are restricted to households incomes as much as 60 % of AMI, and 35 items are restricted to households incomes as much as 80 % of AMI, with 27 of these being workforce housing items. The AMI for Attleboro is $97,600 for a family of 4.
Hillcrest Acres Residences advances the Baker-Polito Administration’s aim of making at the very least 1,000 new workforce housing rental items reasonably priced to middle-income households by means of MassHousing’s Workforce Housing Initiative. For the reason that inception of the initiative in 2016, MassHousing has dedicated or closed workforce housing financing totaling $155.3 million, to 74 initiatives, situated in 27 cities and cities, and superior the event of 5,933 housing items throughout a variety of incomes, together with 1,605 middle-income workforce items.
The final contractor will probably be NEI Basic Contracting, the architect is Davis Sq. Architects, and the administration agent is Federal Administration Co., Inc., an affiliate of the Schochet Corporations.
MassHousing has financed six rental housing communities in Attleboro involving 739 housing items and $70.7 in complete financing. The Company has offered $116.9 million in mortgage financing to 871 Attleboro homebuyers and householders who refinanced their houses.