Bridge loan sets stage for Lee rehab project

Monday July 18, 2011
Bridge loan sets stage for Lee rehab project
By Dick Lindsay, Berkshire Eagle Staff,

The Berkshire Housing Development Corp. plans on renovating 16 apartments at 57 Main and maintain them as affordable rental units. (Berkshire Eagle photo)
LEE — A regional housing agency has secured a $700,000 bridge loan that agency officials say will jump start its $2.7 million downtown housing rehabilitation project three years in the making.
Berkshire Housing Development Corp. recently received the loan from the Community Economic Development Assistance Corporation (CEDAC) to be used toward the purchase of the mixed-use building at 57 Main St. from the Consolati family. A closing date is being scheduled for the end of July, according to BHDC President Elton Ogden.
CEDAC is a public-private non-profit finance agency dedicated to helping other non profits develop affordable housing, promote workforce development and create child care facilities for working parents.
BHDC plans to renovate the 16 apartments in the upper two floors at 57 Main and maintain them as affordable rental units. The first floor commercial space will continue to be occupied by Country Lady Antiques and Gifts, the Upstairs Basement consignment shop and Lee Power Equipment.
Ogden said the CEDAC loan will be repaid from a $1.8 million state grant he’s “pretty optimistic” his agency will receive, possibly in two months. A second state grant and a pair of private loans will cover the rest of the $2.7 million acquisition and renovation costs.
Berkshire Housing is anxious to begin the project.
“We’ve structured a deal to move forward before we secure the [state] funding,” Ogden said.
Since 2008, BHDC has had a purchase and sale agreement with the Consolati family in hopes of landing state money for the project. The grant application has been rejected several times, but the owners have been willing to wait, knowing BHDC will renovate the three-story brick building and still keep the apartments affordable.
“The building needs work, especially the exterior, but its difficult for us to do with the low rents we charge, otherwise we would have to raise the rents significantly,” said Thomas Consolati, a retired public school superintendent.
While Lee has been focused on the commercial aspect of its downtown revitalization, town officials have said the BHDC housing project is just as important as keeping storefronts filled and creating more parking for Main Street shoppers.
Consolati agreed affordable housing is key to a vibrant town center, year round.
“This project will be another good, positive step for the downtown,” he said.
To reach Dick Lindsay:
rlindsay@berkshireeagle.com,
or (413) 496-6233.

SourceBerkshire Eagle