Developers Add 35 Affordable Housing Units, Redevelop 533 Affordable Units In Boston With $95.5 Million In MassDevelopment Bonds

MassDevelopment has issued tax-exempt bonds totaling $95,542,000 to six affordable housing development projects in Boston. The bonds were issued on behalf of UW4 Limited Partnership, Trinity Northampton Phase Two Limited Partnership, Mandela Preservation LLC, Madison Botolph II Limited Partnership, Caritas Project Place Cortes LLC, and Walnut Washington Apartments LLC. In total, the six projects will add 35 affordable units and preserve 533 existing affordable units in Boston’s housing supply.

In addition to the tax-exempt bonds, MassDevelopment assisted the Department of Housing and Community Development with the approval of federal low-income housing tax credits totaling $53,000,000 in equity for the projects.

“The development and preservation of 568 affordable housing units will help maintain and expand supply in Boston’s housing market,” said MassDevelopment President and CEO Marty Jones. “MassDevelopment is thrilled to work with local developers to offer a range of affordable housing options to Bostonians.”

Plans for each company include:

UW4 Limited Partnership – Dorchester (sponsored by VietAID)

• Use $7,700,000 in bond proceeds to construct a 35-unit affordable multi-family rental housing development in Four Corners, Dorchester, that offers community space, outdoor sitting, and play areas.
• All 35 units will be rented to households earning no more than 60% of the area median income; 9 units will be set aside for homeless families.
• Federal low income housing tax credits provided approximately $5.4 million in equity for the project.

“MassDevelopment provided $7,700,000 of construction and permanent financing, without which construction of these 35 affordable apartments in the Four Corners neighborhood of Dorchester would not have been possible,” said Aspasia Xypolia of VietAID, which sponsored UW4 Limited Partnership.  “The knowledge and experience of MassDevelopment’s team made an invaluable contribution to the Upper Washington development.”

Trinity Northampton Phase Two Limited Partnership – South End (sponsored by Trinity Financial)

• Use $18,000,000 in bond proceeds to acquire and renovate Harrison Tower, a 102-unit, 12-story rental housing facility in the South End.
• All 102 units will be affordable to households earning no more than 60% and 70% of the area median income; seven units will be retrofitted to be fully handicapped-accessible; and 13 units will be available to clients from the Boston Public Health Commission’s Homeless Bureau.
• Federal low income housing tax credits provided approximately $11 million in equity for the project.

“Citizens and MassDevelopment recognize the crucial need for affordable housing in Greater Boston,” said Eva Erlich, Senior Project Manager for sponsor Trinity Financial, Inc. “Both organizations have been great partners and have provided critical financing for the Harrison Tower development, which will allow dozens of Massachusetts families to live in safe, attractive, and affordable housing.” Citizens Bank purchased the tax-exempt bond from MassDevelopment for this project.

Mandela Preservation LLC – South End (sponsored by Beacon Communities)

• Use $40,000,000 in bond proceeds to acquire and renovate Mandela Homes, a 276-unit apartment community in the South End that features a computer learning center and conference space.
• All 276 apartments are affordable.
• Federal low income housing tax credits provided approximately $20 million in equity for the project.

“Beacon and the Mandela Homes residents’ association have worked in partnership for many years to build a healthy and safe community at Mandela Homes,” said Darcy L. Jameson, Development Director of Beacon Communities, LLC, which sponsored Mandela Homes. “The recent financial restructuring will enable us to undertake substantial capital improvements, improve energy efficiency, provide additional resident services, and maintain affordability for the long-term. We love being part of one of Boston’s most vibrant neighborhoods.”

Madison Botolph II Limited Partnership – Back Bay (sponsored by Madison Park Development Corporation)

• Use $14,500,000 in bond proceeds to acquire and renovate St. Botolph Terrace, a 52-unit multi-family rental housing complex in Back Bay.
• 50 units will be rented to households earning no more than 60% of the area median income.
• Federal low income housing tax credits provided approximately $6.9 million in equity for the project.

“This successful bond financing will ensure that we can make important capital improvements to the building while maintaining long-term affordability for the families who call St. Botolph Terrace Apartments their home,” said Russell Tanner of Madison Park Development Corporation, which sponsored Madison Botolph II Limited Partnership. “We are very pleased by the strong support from our financial partners on this project, including MassDevelopment as well as Eastern Bank, Red Stone Equity, and Citizens Bank.”

Caritas Project Place Cortes LLC — Bay Village Historic District (sponsored by Caritas Communities)

• Use $5,250,000 in bond proceeds to acquire and renovate a licensed lodging house located on Cortes Street, converting it into a 40-unit affordable housing development plus a unit for the building manager.
• All of the newly reconfigured rental units will be rented to households earning no more than 50% of the area median income.
• Federal low income housing tax credits provided approximately $3.6 million in equity for the project.

“We have worked with MassDevelopment on this and other two previous tax exempt bond issues,” said Mark Winkeller, executive director of Caritas Communities, which sponsored Caritas Project Place Cortes LLC. “We find MassDevelopment to be extraordinarily helpful and a vital participant in providing capital to our affordable housing efforts.”

Walnut Washington Apartments LLC – Roxbury and Jamaica Plain (sponsored by Urban Edge)

• Use $10,092,000 in bond proceeds to acquire, renovate, and preserve Walnut Washington Apartments, a 65-unit multi-family rental housing facility located in Roxbury and Jamaica Plain.
• All 65 units will be affordable.
• Federal low income housing tax credits provided approximately $6.1 million in equity for the project.

“MassDevelopment has been a strong partner with Urban Edge in rehabilitating our affordable housing portfolio as well as the construction of new projects,” said Jeremy Wilkening of Urban Edge, which sponsored Walnut Washington Apartments LLC. “For Walnut Washington Apartments, bonds issued by MassDevelopment are being used to upgrade the property including improving energy efficiency and improving life safety systems, such as adding fire sprinklers. Urban Edge looks forward to continuing working with MassDevelopment on future projects.”

MassDevelopment, the state’s finance and development agency, works with businesses, nonprofits, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2014, MassDevelopment financed or managed 314 projects generating investment of more than $2.9 billion in the Massachusetts economy. These projects are projected to create more than 6,300 jobs and build or rehabilitate more than 1,600 residential units.