BOSTON – May 17, 2022 – MassHousing has closed on $15.2 million in affordable housing financing to Preservation of Affordable Housing (POAH) to refinance the 104-unit Bridle Path Apartments in Randolph and extend the affordability for senior citizens living at the property for at least 32 years.
"We are pleased that the seniors living at Bridle Path will continue to enjoy their quality, affordable apartment homes well into the future," said MassHousing Executive Director Chrystal Kornegay. "POAH shares MassHousing’s mission of confronting the housing challenges facing our residents and was committed to ensuring that this important affordable housing resource remained an option for senior citizens in Randolph."
"POAH appreciates the opportunity to work with Rockport Mortgage Corporation and MassHousing to refinance and preserve this important affordable housing community in Randolph that is home to more than 100 senior residents, and we look forward to making important property improvements and continuing to offer significant support services so they can remain in the community," said Aaron Gornstein, POAH President and CEO.
As part of the transaction, POAH executed a new 20-year federal Section 8 Housing Assistance Payment Contract for 103 of the 104 apartments at Bridle Path. The contract will renew for an additional 12 years, which is the number of years remaining on the previous contract, for an overall extension of affordability of 32 years. One apartment is rented at an unrestricted rate.
"Rockport Mortgage is pleased to once again work with the principals of POAH and MassHousing in preserving the affordability of Bridle Path Apartments," said Dan Lyons, President of Rockport Mortgage. "The property will continue to serve as valuable affordable housing stock for the community of Randolph for many years to come."
Bridle Path was constructed in 1984 at 164 Bittersweet Lane in Randolph and the 104 apartments are contained in three, three-story buildings that include 86 one-bedroom and 18 two-bedroom apartments, as well as a central community room and two smaller community rooms.
POAH plans some property improvements including new asphalt roofing, gutters and downspouts, and the subsurface scoping of sewer lines and tree trimming.
Bridle Path 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 $1.75 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 POAH with a $15.2 million, 35-year permanent loan.
MassHousing has financed two rental housing communities in Randolph involving 264 housing units with an original loan amount of $47.2 million. The Agency has also provided $121.3 million in financing to 724 Randolph homebuyers or 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.
Preservation of Affordable Housing is a Boston-based nonprofit organization that owns and operates more than 12,000 affordable homes at 124 properties in 11 states and the District of Columbia. POAH has rescued and restored some of America’s most “at risk’’ rental housing and is known nationally for its ability to develop innovative financing structures and to close complex deals which preserve long-term housing affordability for seniors, individuals with disabilities and families priced out of the housing market. For more information please visit www.poah.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 $27.5 billion for affordable housing. For more information, follow us on Twitter, Facebook and LinkedIn.