MassHousing closed on $32.8m financing to to the Madison Park Development Corp. for 131-unit Haynes House

July 19, 2019 - Front Section
Haynes House, 735 Shawmut Avenue - Roxbury, MA

Roxbury, MA MassHousing has closed on a total of $32.8 million in affordable housing financing to the Madison Park Development Corp. (MPDC), for the preservation of affordability and property rehabilitation at the 131-unit Haynes House, located at located at 735 Shawmut Ave. The MassHousing refinancing will extend affordability for households with a range of incomes in perpetuity, following the expiration of previous affordability restrictions with the maturation of the property’s former Section 13A mortgage in 2017. 

“We are very pleased that MPDC was committed to not only ensuring that the affordability at Haynes House will be preserved for its residents, but also to investing in significant property improvements that will allow the property to remain a top-quality source of affordable housing long into the future,” said MassHousing executive director Chrystal Kornegay. 

“Haynes House is a final phase of a preservation strategy for Madison Park Village. It enables us to achieve our mission of supporting a vibrant and healthy Roxbury and we look forward to achieving positive outcomes for the building and the people who live there,” said Jeanne Pinado, MPDC’s CEO.

MassHousing is providing MPDC with a $9 million construction and permanent loan, a $21.4 million bridge loan, and $2.7 million from the agency’s $100 million Opportunity Fund as part of the effort to refinance Haynes House following the maturation of the Section 13A loan. 

The transaction also includes a total of $17.2 million in federal Low-Income Housing Tax Credit equity allocated by the Massachusetts Department of Housing and Community Development (DHCD), $4.3 million in Section 13A financing from DHCD, a $13.3 million seller note and a $1.7 million deferred developer fee. 

In addition to preserving and extending the affordability at Haynes House, MPDC has commenced significant property improvements totaling $20 million, including building envelope and façade renovation, apartment and common area upgrades, and the construction of accessible apartments. 

Haynes House has 26 one-bedroom apartments and 105 two-bedroom apartments. Of the 131 apartments, 16 will be occupied by low-income households earning at or below 30% of the area median income (AMI), 89 of the apartments will be for households earning at or below 60% of AMI, 19 apartments will be for households earning at or below 80% of AMI and 7 apartments will be rented at market rates. The area median income for Boston is $107,800 for a family of four. 

The general contractor is Dellbrook Construction, the architect is Davis Square Architects, and the property manager is WinnCompanies. 

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