Affordability Extended for Lower-Income Households at New Bedford Housing Community as a Result of $19.9 Million in MassHousing Financing
The refinancing of the 157-unit Bedford Towers will extend affordability for at least 20 years
BOSTON, MA – MassHousing has provided $19.9 million in affordable housing financing to Kempton New Bedford Limited Partnership to preserve and extend the affordability for lower-income households for at least 20 years at the 157-unit Bedford Towers in New Bedford.
“Bedford Towers has been a longstanding source of quality affordable housing for lower-income individuals and families in New Bedford,” said MassHousing Executive Director Chrystal Kornegay. “This transaction will ensure that these homes will remain affordable to the residents there for at least 20 more years, while also allowing for some improvements to the property.”
“We are pleased to be able to preserve and own this important affordable housing resource in New Bedford into the future with Peabody Properties continuing their excellent management of Bedford Towers,” said James Sullivan, President and Treasurer of Kempton New Bedford’s general partner.
Kempton New Bedford refinanced Bedford Towers 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 surpassed $1 billion in cumulative MAP lending earlier this year, 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 Kempton New Bedford with a $19.9 million, 35-year permanent loan.
“Bedford Towers, being located in downtown New Bedford, allows residents, and in particular senior residents, convenient, walkable access to important services, retail shopping and entertainment,” noted Dan Lyons, Managing Partner and President of Rockport Mortgage Corporation. “We are delighted to partner with Kempton New Bedford and Peabody Properties once again to extend the affordability of this important property in New Bedford for many years to come.”
Built in 1977 and located at 231 Middle St. in New Bedford, Bedford Towers consists of 83 one-bedroom apartments, 52 two-bedroom apartments, and 22 three-bedroom apartments, contained in a seven-story high-rise building and seven two-story townhouse buildings. All of the apartments – except one – are subsidized by a federal Section 8 Housing Assistance Payment contract. One unit is occupied by a property manager. As part of the transaction the owner has extended the Section 8 HAP contract on 156 units ensuring affordability for at least 20 years.
Improvements planned or completed at the property include accessibility upgrades, new security cameras, select unit entry door replacement, new exterior benches and some HVAC replacement.
MassHousing has financed five rental housing communities in New Bedford involving 773 housing units and $145.9 million in original financing. The agency has financed 1,991 home mortgage loans in New Bedford totaling $214.4 million in financing.
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% of the units to those earning less than 80% 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 $25 billion for affordable housing. For more information, follow us on Twitter, Facebook and LinkedIn.