BOSTON – September 20, 2021 – MassHousing has closed on $31.4 million in affordable housing financing to The Community Builders, Inc. (TCB) for the refinancing and extension of affordability at the 219-unit Franklin Park Apartments in Boston.
TCB will extend rental assistance affordability protections for 155 of the 219 units at Franklin Park Apartments by an additional 29 years and will also complete approximately $1.5 million in property improvements at the 15-building housing community, which is located on 12 scattered sites in Dorchester and Roxbury.
"MassHousing is excited to partner with The Community Builders to preserve affordability at the Franklin Park Apartments and position this important affordable housing resource to serve lower-income families well into the future," said MassHousing Executive Director Chrystal Kornegay.
"It is a privilege to extend affordable homes to our residents in Dorchester and Roxbury. We are extremely grateful for our partnership with MassHousing and their innovative refinance program," said Jesse Elton, Director of Finance at The Community Builders. "At TCB we place residents at the center of all we do; we were able to take advantage of the low interest rate environment to maximize proceeds that we will now be able to invest in Franklin Park Apartments for the benefit of our residents."
"We're very pleased to work with The Community Builders, and to once again partner with MassHousing, to refinance and extend the affordability of this important housing asset within these Dorchester and Roxbury neighborhoods," noted Dan Lyons, Managing Partner and President of Rockport Mortgage. "There remains a very clear need for safe, affordable housing not only within the city of Boston but all across the Commonwealth of Massachusetts. We look forward to continuing our work with MassHousing and other mission-driven nonprofit developers like The Community Builders."
The Franklin Park Apartments was refinanced through MassHousing's Multifamily Accelerated Processing (MAP)/Ginnie Mae Joint Venture Initiative with lender partner Rockport Mortgage Corporation. MassHousing offers the MAP/Ginnie Mae loan program to the owners of rental housing through the U.S. Department of Housing and Urban Development (HUD). HUD provides expedited Federal Housing Administration (FHA) insurance approvals through the MAP program. MassHousing has surpassed $1 billion in cumulative MAP lending and the Agency has built the largest MAP lending program of any state housing finance agency in the nation.
The combination of FHA insurance and a Ginnie Mae guarantee enables borrowers to access taxable mortgage financing with lower interest rates, while preserving and extending affordability for hundreds of low-income individuals, senior citizens and families. MassHousing is providing TCB with a $31.4 million, 35-year permanent loan.
The Franklin Park Apartments are contained in low to mid-rise buildings, and include 95 one-bedroom apartments, 99 two-bedroom apartments, 10 three-bedroom apartments, 5 four-bedroom apartments and 10 five-bedroom apartments.
All the apartments are restricted to households earning at or below 60 percent of the Area Median Income (AMI). Of the 219 apartments, 155 are subsidized with a federal Section 8 Housing Assistance Payment contract. TCB will extend the HAP contract for 20 years when the current contract expires in nine years. One unit is subsidized for a disabled household with Section 811 rental assistance through the Massachusetts Department of Community Development (DHCD). The AMI for Boston is $120,800 for a household of four.
The property was substantially rehabilitated by TCB in 2009, with $25 million in MassHousing financing.
MassHousing has financed 209 rental housing communities in Boston involving 25,376 housing units and a total of $3.9 billion in financing. The Agency has also provided $1.2 billion in mortgage financing to 8,653 Boston homebuyers and homeowners.
About MassHousing's MAP/Ginnie Mae Initiative
MassHousing has partnered with three well-known and experienced MAP lenders CBRE, Capital One and Rockport Mortgage Corporation. The MAP lender prepares the submission of each transaction for HUD’s approval. MassHousing then closes the new loan and issues a Ginnie Mae Mortgage Backed Security (MBS), which has consistently provided the multifamily mortgage industry its most competitive long term, taxable interest rates.
With each MAP/Ginnie Mae loan, MassHousing continues as the mortgagee of record and becomes a Ginnie Mae servicer. This ensures affordability, as each completed transaction will require the property owner to rent at least 20 percent of the units to those earning less than 80 percent of the area median income. Affordability at many properties could be at risk were MassHousing unable to offer this product, as owners could refinance with other lenders who do not require affordability restrictions.
About The Community Builders
TCB is a leading nonprofit real estate developer that owns or manages more than 11,000 quality apartments. Their business, infrastructure and community program investments help make neighborhoods work for people of all incomes. For more information, please visit www.tbcinc.org.
About Rockport Mortgage Corporation
Rockport Mortgage Corporation is a privately-owned commercial mortgage banking firm founded in 1992 and located on the North Shore of Boston. Rockport specializes in providing FHA-insured loans to market-rate, affordable and senior housing communities and healthcare facilities through the Department of Housing and Urban Development (HUD) and has been approved under HUD’s Multifamily Accelerated Processing (MAP) Program since the program inception in 2001. The Rockport team works collectively to navigate the complexities of FHA/HUD-insured finance programs, developing strategic solutions to meet the needs of our clients. For more information about Rockport Mortgage Corporation please visit www.rockportmortgage.com.
MassHousing (The Massachusetts Housing Finance Agency) is an independent, quasi-public agency created in 1966 and charged with providing financing for affordable housing in Massachusetts. The Agency raises capital by selling bonds and lends the proceeds to low- and moderate-income homebuyers and homeowners, and to developers who build or preserve affordable and/or mixed-income rental housing. MassHousing does not use taxpayer dollars to sustain its operations, although it administers some publicly funded programs on behalf of the Commonwealth. Since its inception, MassHousing has provided more than $27 billion for affordable housing. For more information, follow us on Twitter, Facebook and LinkedIn.