BOSTON – July 27, 2022 – MassHousing has closed on $16.4 million in affordable housing financing to South Norfolk Elderly Housing Services, Inc. for the preservation and improvement of the 99-unit Stony Brook Court in Sharon. As part of the transaction, affordability protections for senior citizens living at the property will be extended for at least 39 years.
"Stony Brook Court is an important source of affordable rental housing for senior citizens in Sharon," said MassHousing Executive Director Chrystal Kornegay. "MassHousing is pleased that not only will that affordability be extended for almost four decades, but that the property will undergo significant renovations so that its residents will enjoy quality and safe homes long into the future."
As part of the transaction, South Norfolk Elderly Housing Services has executed a new 20-year federal Section 8 Housing Assistance Payment contract for 98 one-bedroom apartments at the two-story Stony Brook, which will include the 19 years remaining on the previous contract, for an overall extension of affordability of 39 years. There is an additional unit on the property for management staff.
Additionally, South Norfolk Elderly Housing Services will undertake approximately $3.4 million in property improvements, including repair and repainting of siding, replacement of windows and air-conditioning units, fire alarm and sprinkler system upgrades, the installation of a new emergency generator, and carpet replacement in apartments and common areas. Twenty apartments will be renovated, and five apartments will receive accessibility upgrades.
Stony Brook Court 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 $2 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 South Norfolk Elderly Housing Services with an $18.5 million, 35-year permanent loan.
"We're very pleased to work with South Norfolk Elderly Housing Services, Peabody Properties, and MassHousing in refinancing and extending the affordability of Stony Brook Court," noted Dan Lyons, President of Rockport Mortgage. "The location of the property, close to both the Sharon Community Center and the Sharon Council on Aging, as well as other local amenities, is a real benefit for the senior citizens who call Stony Brook Court home."
The property is managed by Peabody Properties.
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.
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.