Affordability Extended for Lower-Income Senior Citizens at Methuen Housing Community as a Result of $7.9 Million in MassHousing Financing
The refinancing of the 60-unit Merrimack Valley Apartments will extend affordability for at least 23 years
BOSTON, MA – MassHousing has provided $7.9 million in affordable housing financing to the non-profit Community Teamwork, Inc. (CTI) to preserve affordability for lower-income senior citizens at the 60-unit Merrimack Valley Apartments in Methuen and extend affordability at the community for at least 23 years.
“MassHousing was pleased to complete the refinancing of this important affordable housing resource for senior citizens in Methuen,” said MassHousing Executive Director Chrystal Kornegay. “Community Teamwork, Inc. is a mission-driven organization that has worked for more than 50 years to help improve the lives of residents in the Merrimack Valley and we commend them for their commitment to not only the seniors at the Merrimack Valley Apartments but to everyone they serve.”
“Community Teamwork, Inc. is extremely pleased to be able to extend the affordability of this senior residential community that was built in 1983. The funds will enable us to update and maintain the property as affordable housing for many more years, increase the services to the residents, and enable CTI to create and preserve more affordable housing in the future,” said Bill Lipchitz, Director of Real Estate Operations for Community Teamwork.
CTI refinanced Merrimack Valley Apartments 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.
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 senior citizens and families. MassHousing is providing CTI with a $7.9 million, 35-year permanent loan. The refinancing allowed CTI to refinance the prior MassHousing mortgage with a 6.21-percent interest rate to the new permanent loan with a 3.30-percent interest rate.
“The city of Methuen continues to see an increase within the senior citizen demographic and as such, the market demand for safe and affordable housing also continues to grow,” said Dan Lyons, President of Rockport Mortgage Corporation. “The collaborative efforts extended to preserve these much-needed properties, serving at-risk populations as they do, is critical. We’re extremely proud of the ongoing work we do with MassHousing across the state, through the Joint Venture Program, in support of these housing preservation initiatives.”
Located at 20 Calumet Road in Methuen, Merrimack Valley Apartments consists of 60 age-restricted, one-bedroom apartments, contained in six two-story buildings constructed in 1983. All 60 apartments are subsidized by a federal Section 8 Housing Assistance Payment contract, which will be extended for 20 years when the current contract expires in three years.
The property has also undergone some moderate renovations, including accessibility and security upgrades.
The property manager is Peabody Properties.
MassHousing has financed two rental housing communities in Methuen involving 157 housing units and $18.8 million in original financing. The agency has financed 899 home mortgage loans in Methuen totaling $130.4 million in financing.
About MassHousing’s MAP/Ginnie Mae Initiative
MassHousing has partnered with two well-known and experienced MAP lenders: CBRE 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 Community Teamwork, Inc.
Community Teamwork is a catalyst for social change. Their driving mission is to help people help themselves with childcare, family supports, nutrition, fuel assistance, housing, skills training, employment, financial education, and individual asset and small business development. As a Community Action Agency, a Regional Housing Agency, and a Community Development Corporation, Community Teamwork helps nearly 50,000 individuals from 63 cities and towns in northeastern Massachusetts gain greater economic independence. For more information about CTI please visit www.commteam.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 $25 billion for affordable housing. For more information, follow us on Twitter, Facebook and LinkedIn.