MassHousing Closes $64.7 Million in Financing for the Acquisition, Rehabilitation and Long-Term Preservation of the Blue Mountain Apartments in Roxbury
The NHP Foundation will substantially renovate the historic, 217-unit property and ensure affordability for lower-income households for at least 25 years
BOSTON – October 21, 2020 – MassHousing has closed on a total of $64.7 million in affordable housing financing to the non-profit NHP Foundation for the acquisition, rehabilitation and preservation of the historic, 217-unit, Blue Mountain Apartments in Roxbury. As a result of the transaction, all 217 homes at the Blue Mountain Apartments will remain affordable to low-income households through at least 2045.
“The Blue Mountain Apartments have long been an important source of affordable housing for the Roxbury community and now this financing will result in extensive property renovations and the extension of affordability for at least 25 years for the residents who will continue to live and prosper there,” said MassHousing Executive Director Chrystal Kornegay. “The NHP Foundation shared our commitment to preserve these affordable homes and we were pleased to partner with them to make that vision a reality.”
“The future of affordable housing in major cities like Boston lies in partnerships between visionary collaborators,” added Mecky Adnani, Sr. Vice-President for NHPF. “This undertaking is the best way to preserve the historic fabric of the neighborhood, preserve long-term affordability, and provide quality housing, amenities and services that would expand opportunities for our resident communities.”
MassHousing is providing the NHP Foundation with $52.2 million in construction to permanent financing for the acquisition and rehabilitation of the 19 historic buildings that comprise the housing community, and $12.5 million in permanent financing for the land acquisition.
The transaction also involved $35.5 million in federal Low Income Housing Tax Credit equity, $4.5 million in state Historic Tax Credit equity, and $3 million in anticipated operating revenue. PNC Bank, NA was the investor for the housing and historic tax credits.
The 217 units at the Blue Mountain Apartments are contained in 19 buildings on scattered sites around the Elm Hill Avenue neighborhood in Roxbury. The affordable housing community was originally built in the early 1900s and was last substantially rehabilitated in the 1980s. The buildings are included in the Massachusetts Historical Commission’s Historic Places inventory.
All 217 units are subsidized by federal Section 8 Project Based Vouchers, which will be extended 25 years through 2045. There are 105 one-bedroom apartments, 73 two-bedroom apartments, 18 three-bedroom apartments, 16 four-bedroom apartments and 5 five-bedroom apartments.
Among the improvements planned for the property are concrete and masonry repairs, roof repairs, fire system upgrades, exterior door and window replacement, apartment, kitchen and bathroom upgrades, accessibility upgrades, and upgrades to the buildings’ HVAC, plumbing and electrical systems.
MassHousing has financed 30 rental housing communities in Roxbury totaling 3,702 units of housing with an overall original loan amount of $583.2 million. The Agency has also provided home mortgage loans to 8,537 homebuyers and homeowners in Boston with an original purchase principal balance of $1.1 billion.
About The NHP Foundation
Headquartered in New York City with offices in Washington, DC, and Chicago, IL, The NHP Foundation (NHPF) was launched on January 30, 1989, as a publicly supported 501(c)(3) not-for-profit real estate corporation. NHPF is dedicated to preserving and creating sustainable, service-enriched multifamily housing, and scattered-site communities that are both affordable to low and moderate income families and seniors, and beneficial to their communities. Through Family-Centered Coaching, NHPF’s subsidiary Operation Pathways engages with, and assists, families experiencing poverty and other hardship, to problem-solve together. Through partnerships with major financial institutions, the public sector, faith-based initiatives, and other not-for-profit organizations, NHPF has 57 properties, including 9,664 units, in 15 states and the District of Columbia. For more information, please visit www.nhpfoundation.org.
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.