PATRICK-MURRAY ADMINISTRATION TARGETS $153.9 MILLION STATEWIDE TO BUILD, PRESERVE AFFORDABLE RENTAL HOUSING
Program and recovery funds, private investment spur developments, create jobs, and housing opportunities across the state
JANUARY 8, 2010 – As part of the Patrick-Murray Administration’s Massachusetts Recovery Plan to secure the state’s economic future, Governor Deval Patrick and Lieutenant Governor Timothy Murray were in New Bedford today to announce that the state will invest $153.9 million in resources leveraged from various affordable housing programs, American Recovery and Reinvestment Act funds, and private investment to support 26 projects in 17 communities across the state. When completed, those projects will create or preserve 1,305 rental homes, 1,147 of which will be affordable to low-and moderate-income working families and individuals, including 144 units set aside for families transitioning to permanent housing from homelessness.
“This is a great example of government and the private sector coming together to help get people back to work — here in New Bedford and around the Commonwealth,” said Governor Patrick. “With the indispensable help of the entire congressional delegation, we are creating jobs today and building affordable communities for working people tomorrow.”
“These tax credit awards, and the private investment they leverage, will create good jobs and affordable housing throughout the Commonwealth,” said Lieutenant Governor Murray. “I thank our federal delegation for supporting these tax credits and for helping the Commonwealth continue on the road to economic recovery.”
Of the $153.9 million, the Administration will utilize more than $131.4 million worth of those resources to produce 1,050 rental units – 926 of which will be affordable for low- and moderate-income households. Funding commitments include $11.3 million in federal low-income housing tax credits and another $4.7 million in state tax credits, which will be sold to private investors to leverage an estimated $95 million in project financing. Another $27.6 million will be issued from seven state bond-funded affordable housing programs as well as $7.6 million in federal HOME funds and another $1.2 million in federal weatherization funds.
“Working families across Massachusetts have taken a severe beating from the lousy economy and below freezing temperatures. This investment will help deliver affordable housing to those struggling most to keep a roof over their heads in the dead of winter. I’m grateful the Patrick Administration is committed to working with Congress to address this urgent housing problem,” said Senator John Kerry.
“As the economy struggles to rebound from the recession, projects like these are vital to our recovery in Massachusetts. I commend Governor Patrick for his innovative use of these federal, state, and private funds to provide affordable housing to the hard-working men and women of our Commonwealth,” said Senator Paul Kirk.
All of those programs are administered by the state Department of Housing and Community Development (DHCD) to assist developers who produce housing for low- and moderate-income seniors, families, individuals and special needs residents across the state.
The remaining $22.5 million in today’s announcement comes from American Recovery and Reinvestment Act funds from the U.S. Treasury Department to jump start affordable housing developments in New Bedford, Ipswich and Gloucester which received prior tax credits allocations, but have been stalled due to the lack of equity available in the tax credit market. When completed, those three projects will yield another 255 new rental units, with 221 of them affordable to low- and moderate-income wage earners. Those three projects are expected to generate more than 360 jobs.
Treasury tax credit exchange funds allow states to convert previously awarded tax credits into grants or low-interest deferred loans. DHCD implements the program in Massachusetts and funds are awarded competitively based on criteria reflecting whether projects are shovel ready for construction and secure in all other aspects of project financing and permitting. All awardees must close within 120 days and start construction within another 45 days. Prior to today’s announcement, the state since last summer has awarded more than $126 million in federal recovery funds from tax credit exchange and assistance programs to revive nearly two-dozen developments and create hundreds of jobs.
“Congress responded to frozen private credit markets in the Recovery Act by allowing states to convert low-income housing tax credits into partial grants. I am particularly pleased that under the state’s plan these much-needed funds will help stalled redevelopment projects get underway quickly in Ipswich and Gloucester in order to provide safe and affordable housing to local families in need,” said Congressman John Tierney.
“While we are currently in a depression in housing prices, a lack of decent affordable housing for Massachusetts has in the past and will in the future be not just a social problem but an obstacle to our economic progress. I appreciate the Governor’s recognition of this, and his willingness to take maximum advantage of available resources, including federal stimulus funds, to deal with this problem in such a constructive way,” said Congressman Barney Frank.
“These resources will help to increase the level of affordable rental housing in Greater Boston and throughout the Commonwealth, improving communities and giving more residents access to quality housing,” said Congressman Michael Capuano.
“As a member of the Subcommittee on Housing, I continue to hear heartbreaking stories of families being forced out of their homes. Creating and preserving affordable rental housing should be a priority during these difficult economic times, while creating jobs in the construction industry, “said Congressman Stephen F. Lynch.
“These awards from the American Recovery and Reinvestment Act will help provide affordable and secure housing to families in Lawrence, Lowell, Harvard, and Acton. In turn, these projects create construction jobs that boost the local economy and help put people back to work, making them an excellent investment in our communities. I want to thank the Patrick-Murray administration for making the needed funds available,” said Congresswoman Niki Tsongas.
In total, all funding sources from today’s announcement will support developments in: Acton, Auburn, Beverly, Boston (seven projects), Fall River, Falmouth, Gloucester, Ipswich, Harvard, Lawrence, Lowell (two projects), Marion, New Bedford (two projects) Northampton (two projects), Quincy, Spencer and Worcester. See additional project details and statements from state elected officials representing regions that will receive funding.
RENTAL AWARDS FOR HOMELESSNESS PROJECTS
- Bowdoin Lodge (Boston): The Commonwealth Land Trust will use $406,439 from DHCD housing programs to rehabilitate 111 affordable units, with 29 set aside for homeless individuals.
- Rutland Sq. House (Boston): The Reed Charitable Trust will use $750,000 from DHCD to produce 5 units targeted to homeless households.
- Franklin Park Apartments (Boston): The Community Builders will use $2.6 million in federal low-income housing tax credits to rehabilitate 220 affordable units with 55 units targeted for homeless households. It will also receive another $1.2 million in federal weatherization assistance program funds to utilize green building technology.
- Saunders School (Lawrence): Peabody Supportive Housing LLC will use $1.3 million in DHCD subsidies and $347,982 in federal tax credits to produce 16 units all targeted to homeless families.
- H2O – Hope to Opportunity (Lowell): Developed by House of Hope with $557,324 from DHCD to produce 5 units for homeless families.
- King Street – Single Room Occupancy (Northampton): The Valley Community Development Corporation will use $650,000 in state funds and $500,000 in federal HOME funds to produce 10 new affordable units, with 5 units for homeless individuals.
- The Maples – Single Room Occupancy (Northampton): The Valley Community DC will use $950,000 in state funds to rehabilitate 11 affordable units with 4 targeted to homeless individuals.
- Old High School Commons (Acton): The Common Ground Development Corp. will use $1,605,000 in DHCD subsidies and $334,294 in federal tax credits to produce 15 new affordable apartments. 2 units will be set aside for those earning 30% or below of area median income.
- Kateri Tekakwitha Senior Housing (Auburn): Kateri Tekakwitha Development, Inc. will use $1,150,000 in DHCD subsidies to produce 30 affordable rental units. 15 units will be set aside for those earning 30% or below of area median income.
- Holcroft Park Homes (Beverly): The North Shore YMCA and Beverly Affordable Housing will use $3,300,000 in DHCD subsidies and $643,500 in federal tax credits to build 33 affordable units with 8 units targeted to those earning 30% or below of area median income.
- 157 Washington Street (Boston/Dorchester): Codman Sq. Neighborhood DC will use $1,550,000 in DHCD subsidies and $630,000 in federal tax credits to produce 24 new affordable units; 3 will be targeted to those earning 30% or below of area median income.
- Bloomfield Gardens (Boston/Dorchester): Viet-Aid will use $2,750,000 in DHCD subsidies and $661,011 in federal tax credits to build 27 affordable units with 7 units targeted to those earning 30% or below of area median income.
- Cheriton Grove Apartments (Boston/West Roxbury): The Cheriton Grove Corp. will use $181,538 in state low-income housing tax credits to produce 60 affordable units with 6 set aside for residents earning 30% or below of area median income.
- Maverick Street Apartments (East Boston): The East Boston Community Development Corp. will use $1,000,000 in DHCD subsidies and $714,642 in federal tax credits to produce 27 affordable units, 3 will be set aside for residents earning 30% or below of area median income.
- Wampanoag Mill (Fall River): Winn Development will use $1,550,000 in DHCD subsidies and $1,100,000 in federal tax credits and $2,400,000 in state tax credits to build 97 apartments. 63 will be for low- and moderate income tenants; 10 units will be set aside for residents earning 30% or below of area median income.
- Veteran’s Park Apartments (Falmouth): The Falmouth Housing Corp. will use $2,087,500 in state subsidies and $702,000 in federal tax credits to produce 39 affordable units with 9 set aside for those earning 30% or below of area median income.
- Bowers Brook Housing (Harvard): L.D. Russo, Inc. with use $1,981,233 in DHCD subsidies and $756,000 in federal tax credits to build 42 affordable units with 5 set aside for residents earning 30% or below of area median income.
- Moody Street Apartments (Lowell): The Coalition for a Better Acre will use $1,888,000 in DHCD subsidies and $499,000 in federal tax credits to produce 23 affordable apartments with 6 units set aside for residents earning 30% or below of area median income.
- Little Neck Village (Marion): Edward A. Fish Associates, LLC will use $2,034,629 in DHCD program subsidies and $829,089 in federal tax credits to build 48 affordable units with 12 set aside for residents earning 30% or below of area median income.
- Regency Towers (New Bedford): Trinity Financial will use $4,500,000 in DHCD program subsidies and $758,000 in federal tax credits and $1,633,000 in state tax credits to preserve 129 units with 43 affordable units set aside for low- and moderate-income residents.
- 6 Fort Street (Quincy): The Asian Community Development Corp. will use $2,048,502 in DHCD subsidies, and $765,000 in federal tax credits and $554,000 in state tax credits to build 34 affordable units with 7 set aside for residents earning 30% or below of area median income.
- 204 Main Street (Spencer): The South Middlesex Opportunity Council will use $1,900,000 in DHCD subsidies to produce 24 affordable apartments with 6 units set aside for residents earning 30% or below of area median income.
- 26-28 Dayton Street (Worcester): The South Middlesex Opportunity Council with $725,000 in DHCD subsidies to produce 16 affordable apartments with 4 set aside for residents earning 30% or below of area median income.
TAX CREDIT EXCHANGE AWARDS
- United Front Phases I & II (New Bedford): The Preservation of Affordable Housing and will use $10,400,000 in tax credit exchange funds to rehabilitate and construct 173 units, including 139 affordable units. This project will generate an estimated 212 jobs*.
- Powder House Village (Ipswich): The North Shore YMCA will use $8,139,940 in tax credit exchange funds to build 48 units, all of which will be affordable. This project will generate as estimated 80 jobs*.
- Pond View 3 (Gloucester): The Caleb Foundation and will use $4,000,000 in tax credit exchange funds to build 34 units, all of which will be affordable. This project will generate an estimated 70 jobs*.
*All job estimates are based on formulas established by the accounting firm Deloitte Touche