The Congress Companies' affiliate, Greenfield Acres, LLC, was recently awarded a multifamily preservation loan through a new federal/state partnership program with MassHousing that provides lower interest rates on loans to owners of rental housing with affordability agreements. Loan was for $6.8 million.
The initiative is a partnership with the Department of the Treasury, Department of Housing and UrbanDevelopment (HUD), the Federal Housing Administration (FHA) and state housing finance agencies (HFAs)including MassHousing. Previously, only two transactions in the nation had closed under this new program.
The loan will be used to refinance improvements to Greenfield Acres, a 94-unit elderly housing facility located at 10 Congress St. including the financing of renovations to the development.
The construction work to be performed by Congress Building Corp. and designed by Siemasko + Verbridge Architects of Beverly, Massachusetts, will include installation of energy-efficient boilers, new thermostatic controls, windows, doors, roofing, insulation, elevators, emergency generator, common area upgrades, sprinkler system upgrades, electrical upgrades, and handicap accessibility throughout, including conversion of multiple units to fully accessible dwellings. The project began last month.
Originally built by Congress Construction Corp. in 1972, Greenfield Acres had an outstanding MassHousing loan that was set to mature in March 2016. With the refinancing, the 19 affordable units for low-income residents will remain affordable for at least 20 more years (the remaining 74 units are market rate). This transaction insured that these affordable units, which could have been converted to market rents, remain affordable.
"We are honored and thrilled to be participating in another successful transaction with MassHousing andHUD," said William Nicholson, CEO of the Congress Companies. "The Risk Sharing program through the Federal Finance Bank is truly an innovative, cutting edge program, which will provide continued affordability, construction renovations and improvements to properties, and allow the continuation of our valued partnership with MassHousing and HUD. Everyone is a winner in this program, which is fundamental to a good transaction. We look forward to continuing our excellent working relationships with MassHousing, HUD and Federal Finance Bank."Greenfield Acres, 10 Congress Street - Greenfield, MA