MassHousing Is Providing $19.2 Million in Financing for 62 New Affordable and Workforce Rental Homes on Cape Cod
Pennrose, LLC will redevelop Cape Cod Five Bank’s former operations center in Orleans into 62 new apartments for residents with a range of incomes
BOSTON – March 21, 2024 – MassHousing is providing $19.2 million in affordable and workforce housing financing to Pennrose, LLC for the redevelopment of Cape Cod Five Bank’s former operations center in Orleans into 62 new affordable rental homes for residents with a range of incomes.
The development will repurpose the former bank operations building that was built in 1977 to new 20 apartments and a management office, fitness room, community room, resident services office, and package room. Pennrose will also construct a new wing on the building that will contain 34 apartments, as well as two new four-unit townhouse-style buildings.
“Housing affordable to people who live and work on Cape Cod is in very high demand,” said MassHousing CEO Chrystal Kornegay. “MassHousing is excited to partner with Pennrose to repurpose this former commercial property in Orleans into 62 brand new rental homes that will provide housing stability for its future residents as well as the opportunity to live and prosper on the Cape.”
“The support from the Town of Orleans was essential in making this project come together,” said Charlie Adams, Regional Vice President with Pennrose, LLC. “Their dedication to affordable housing and their contribution of $2 million in CPC funds was incredible. Equally impressive was how many neighboring communities – Brewster, Chatham, Eastham, Harwich, Truro, and Wellfleet were also willing to commit their CPC funds in addition to Barnstable County. We also can’t thank Cape Cod Five Bank enough for their vision in making their former site into affordable housing.”
MassHousing is supporting the Cape Cod Five Redevelopment with $15.4 million in tax credit equity bridge financing, $2.8 million in permanent financing, and $1 million from the Agency’s Workforce Housing Initiative.
The project received approximately $13 million in equity through an allocation of federal Low Income Housing Tax Credits by the Massachusetts Executive Office of Housing and Livable Communities (EOHLC), approximately $2 million in direct support from EOHLC, $14.1 million in state tax credit loans from the Massachusetts Housing Investment Corporation (MHIC), $20.3 million in construction financing from Webster Bank, $2.5 million in local Community Preservation Committees funds, $1.5 million in American Rescue Plan Act (ARPA) funds from Barnstable County, and $1 million in ARPA financing through the Affordable Housing Trust Fund, which MassHousing manages on behalf of EOHLC. Hudson Capital is the tax credit syndicator and Webster Bank and Santander Bank are the equity investors.
There will be 31 one-bedroom apartments, 23 two-bedroom apartments, and 8 three-bedroom apartments. Nine of the units will be supported by project-based subsidies (eight Section 8 and one MRVP), for households earning up to 30 percent of the Area Median Income (AMI), 43 apartments will be restricted to households earning up to 60 percent of AMI, and 10 will be workforce housing units for households earning up to 80 percent of AMI. The AMI for Orleans is $149,300 for a household of four.
The general contractor is Dellbrook/JKS. The architect is The Architectural Team , the landscape architect is Crowley Cottrell, the civil engineer is Horsley Witten, and the management agent is Pennrose Management Company.
About Pennrose, LLC
With more than 50 years of experience, Pennrose combines quality development and proven management to deliver exceptional lifestyle-centered communities for its residents. With the superior knowledge and unparalleled dedication to get the job done right, Pennrose develops and operates both conventional and affordable communities throughout the Eastern and Midwestern portion of the United States. For more information about Pennrose, LLC, please visit www.pennrose.com.
About MassHousing
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 $29 billion for affordable housing. For more information, follow us on Twitter, Facebook and LinkedIn.
