MassHousing closes $ 5.5 million financing for 181 Chestnut Street in Chelsea
BOSTON – MassHousing has secured a total of $ 5.5 million in affordable housing and labor funding to the nonprofit The Neighborhood Developers, Inc. (TND), to transform a former rental property at market rate at 181 Chestnut Street in Chelsea in an income-housing community.
The MassHousing funding will enable TND to extend long-term accessibility to households across a wide range of income, from very low income households to middle income households.
“By converting existing market-priced apartments into affordable housing with sustainable affordability protections, this transaction will help ensure that Chelsea residents facing rising rents can continue to live and work in this vibrant city,” said Chrystal Kornegay, Executive Director of MassHousing. “TND is a mission-driven real estate developer, and MassHousing is happy to partner with them on this exciting project. “
“Preserving a historic building as permanent affordable housing in downtown Chelsea will help advance long-term community goals and keep families in stable and healthy housing during and beyond the pandemic of COVID-19, ”said Rafael Mares, executive director of the neighborhood developer. “We believe this project will also serve as a model for how Massachusetts community development corporations can convert natural affordable housing into deed-restricted housing for low-income families.”
TND acquired the three-story brick and masonry building at 181 Chestnut Street in 2019. The MassHousing financing will allow TND to lease 30 units at previously unrestricted market rates to income-eligible households in a range of income, while two of the apartments will be rented at market rates.
Eight apartments will be subsidized with federal housing vouchers and limited to households earning up to 30% of the area’s median income (MAI), and nine apartments will be limited to households earning up to 60% of the MAI. There will be 13 labor housing units, of which six will be reserved for households earning up to 80% MAI and seven for households earning up to 120% MAI. The MAI for Chelsea is $ 119,000 for a family of four. None of the existing tenants will be moved.
MassHousing provides TND with a permanent loan of $ 4.9 million and funding of $ 650,000 from the agency’s Workforce Housing Initiative.
The transaction also involved $ 1 million in funding from the Massachusetts Department of Housing and Community Development (DHCD), $ 1.1 million from the Affordable Housing Trust Fund, which MassHousing manages on behalf of DHCD, approximately $ 1.5 million. $ from state HOME funds, $ 700,000 from local HOME funds. funds provided by the North Suburban Consortium through the Malden Redevelopment Authority, $ 640,000 in funding from the Community Economic Development Assistance Corporation (CEDAC) and $ 238,052 from a TND loan fund. CEDAC also provided $ 8.5 million in acquisition funding in partnership with LISC Boston’s Fair Transportation Focused Development Accelerator Fund and supported by Partners HealthCare and other fund investors.
181 Chestnut Street advances the Baker-Polito administration’s goal of creating at least 1,000 new affordable workforce housing units for middle-income households through the Workforce Housing initiative – artwork by MassHousing. Since the initiative’s launch in 2016, MassHousing has initiated or closed funding for workforce housing totaling $ 116.5 million, in 54 projects, located in 22 towns and villages. To date, the Workforce Housing Initiative has advanced the development of 4,669 housing units across a range of incomes, including 1,308 middle income labor units.
181 Chestnut Street was originally built as a school and nunnery and was converted into housing in 2015. It is within walking distance of retail shops, restaurants and the city’s suburban train station. city and served by several MBTA bus lines.
The property is managed by WinnCompanies.
MassHousing has funded seven rental housing communities in Chelsea totaling 640 housing units with a total initial loan amount of $ 75.6 million. The agency also provided mortgages to 754 buyers and homeowners in Chelsea with an initial purchase capital balance of $ 90.5 million.
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