BOSTON – May 16, 2022 – MassHousing has closed on a $205 million package of affordable housing financing to Providence Realty Investment, LLC, for the refinancing and preservation of affordability at 10 Massachusetts housing communities. The financing package extends affordability protections on 931 total apartment homes for lower-income senior citizens and families.
"We are pleased to complete these transactions with Providence Realty Investment so that the lower-income seniors and families living in these 10 housing communities will continue to enjoy affordable rents and housing stability," said MassHousing Executive Director Chrystal Kornegay. "These properties have been well maintained over the years and these transactions will allow residents to remain in their homes, in towns where affordable rental housing can often times be difficult to obtain."
"Providence Realty Investment, LLC, commends the collaborative effort between MassHousing, Rockport Mortgage and HUD to create a refinance solution that provides long-term stability and secures 931 apartments for lower-income seniors and families for years to come," said CEO Raymond Uritescu.
The 10 housing communities were 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 $1.5 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.
"Rockport Mortgage is pleased to have worked with the principals of Providence Realty Investment and MassHousing in preserving the affordability of over 900 units across the state of Massachusetts," noted Dan Lyons, President of Rockport Mortgage. "The properties will continue to serve as valuable affordable housing stock for their communities for many years to come."
Providence Realty Investment previously utilized $125 million from MassHousing to purchase the 10 affordable housing communities in 2011. At that time, nearly one-third of the 931 apartments involved were at risk of converting to market rents and being lost from the state’s inventory of affordable housing. That transaction ensured that rents at the 10 properties would remain affordable for lower-income renters for at least 60 years.
All 10 of the properties were originally financed by MassHousing between 1979 and 1984. Additionally, most of the 931 apartments are subsidized by federal Section 8 Housing Assistance Payment contracts that remain in place or have been renewed and extended.
The properties and latest MassHousing financing include:
- Cedar Glen in Reading, $29.3 million in financing involving 114 units of elderly housing.
- Glen Grove in Wellesley, $38.4 million in financing involving 125 units of elderly housing.
- Gosnold Grove in Falmouth, $4.4 million in financing involving 33 units of family housing.
- Nehoiden Glen in Needham, $16.5 million in financing involving 61 units of elderly housing.
- Chestnut Glen in Abington, $25.6 million in financing involving 130 units of elderly housing.
- Heritage Green in Sturbridge, $13.9 million in financing involving 130 units of elderly and family housing.
- Noonan Glen in Winchester, $4 million in financing involving 18 units of elderly housing.
- Norton Glen in Norton, $29.6 million in financing involving 150 units of family housing.
- Longfellow Glen in Sudbury, $32.2 million in financing involving 120 units of elderly and family housing.
- Old Mill Glen in Maynard, $10.7 million in financing involving 50 units of family housing.
The properties are managed by Wingate Management.
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 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.
About Providence Realty Investment, LLC
Providence Realty Investment is a privately held, full service real estate company based in Providence, R.I. specializing in the acquisition and development of affordable and market-rate housing. Providence Realty Investment’s success stems from the unique blend of professional backgrounds of founders Raymond Uritescu and Michael Hennessey, combining more than 60 years of experience in national real estate management, land development, professional engineering and finance. For more information, please visit www.pri-renewables.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.