Massachusetts Housing Investment Corp. (MHIC) and the Allston-Brighton Community Development Corp. (ABCDC) have finalized $11.5 million in financing for 235 units of affordable housing in Boston’s Allston neighborhood.
MHIC is providing an $11.5 million low-income housing tax credit investment to renovate the Commonwealth and Glenville Apartments; the investment is split between a multi-investor fund ($8.8 million) and Rockland Trust Bank ($2.6 million). Financing for the project also includes $25.7 million in construction and permanent loans from Boston Private, financed through tax exempt bonds issued by MassDevelopment.
The Commonwealth and Glenville Apartments are on 17 scattered properties, all on the same city block bounded by Commonwealth and Glenville avenues. Rehabilitation of the buildings will primarily include major masonry repairs, maintenance and structural repairs on all buildings; energy efficiency and safety upgrades; accessibility and common area enhancements; and new doors, kitchen and bathroom fixture replacement, and similar work as needed in individual units. Exterior improvements will include paving alleys and walkways. Work will begin in August and be completed in September 2016. The total development cost is $56 million.
The Commonwealth and Glenville Apartments buildings are more than 100 years old, and have been owned by two separate but related companies whose members include ABCDC and a corporation of elected tenant representatives, the Commonwealth Tenants Council. The properties originally were acquired and developed in 1998 using HUD financing that was prepaid by the owners in 2011 and 2013. As part of this refinancing, the current owners are selling the two projects to a single new LLC, which will undertake a rehabilitation program and ensure the rental apartments’ long-term affordability.
“In a community that has become very transitory, with even a studio apartment going for almost $2,000 in this neighborhood, keeping these units affordable for low- and moderate-income families is of paramount importance,” Carol Ridge-Martinez, executive director of ABCD, said in a statement. “Now that we have this financing in place, we can finally begin the renovations and we will be able to sustain affordability of these apartments for many more decades.”