CEDAC provides financing to build 235 housing units across Massachusetts

BOSTON (December 29, 2022) – The Baker-Polito Administration convened a Housing Roundtable discussion in Haverhill on December 8th and announced funding awards in the most recent competitive round for affordable housing across the Commonwealth.

The Community Economic Development Assistance Corporation (CEDAC) has partnered with the Department of Housing and Community Development (DHCD) and its other quasi-public state housing agencies on these new projects and is excited about its involvement as a provider of predevelopment and acquisition funding to five of the 14 total announced projects.

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SourceCEDAC Press Releases

CEDAC Announces Q1 FY23 Lending Results with Exciting New Projects

BOSTON (November 17, 2022) – We are excited to share CEDAC’s lending results for the first quarter of Fiscal Year 2023 (July 1 – September 30, 2022). Our early-stage project lending will help to preserve or create over 900 units of affordable housing in 12 communities across Massachusetts.

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SourceCEDAC Blog

CEDAC early-stage funding in Q1 of FY23 will help create or preserve more than 900 units of affordable housing in 12 communities across Massachusetts

Projects stretch from Boston to Springfield with CEDAC commitments totaling $19 million

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Developers who want to convert EconoLodge in Hadley into affordable housing get $4.5M boost

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SourceDaily Hampshire Gazette

New CDC Leaders: Listening Deeply with Keith Fairey, President and CEO of Way Finders

BOSTON (October 25, 2022) – The past decades have seen the steady rise and proliferation of Community Development Corporations (CDCs), organizations created with the goal of revitalizing neighborhoods that had fallen victim to economic hardship. Areas that had fallen into disarray following years of neglect were offered new opportunities to provide affordable housing for those in need as the cost of living continued to increase and reinvigorate their communities which had in many ways become disconnected.

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SourceCEDAC Blog

CEDAC early-stage funding in Q4 of FY22 will help create or preserve more than 460 units of affordable housing in eight communities across Massachusetts

Projects stretch from Amherst to Provincetown with CEDAC commitments totaling $22 million

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Baker-Polito Administration And CEDAC Award Funding In 2022 Winter Rental Round To Help Create Or Preserve More Than 1,474 Units Of Affordable Housing Across Massachusetts.

CEDAC committed predevelopment or acquisition financing to 6 of these projects – BOSTON, July 20, 2022 – The Community Economic Development Assistance Corporation (CEDAC) is proud to serve as a financing partner in the production or preservation of 11 supportive housing projects announced during the Baker-Polito Administration’s most recent Supportive Housing funding round.Projects stretch from Beverly and  Boston to Chicopee with CEDAC commitments totaling $6.5 million.

 

BOSTON (Aug 11, 2022) – The Community Economic Development Assistance Corporation (CEDAC) is proud to announce its work as a financing partner in the production or renovation of 26 affordable housing projects announced during the Baker-Polito Administration’s most recent Winter Rental Round. state funding represents a combination of direct subsidies, state and federal tax credits, and other resources to support the creation and preservation of affordable housing through multiple funding rounds each year. These most recent awards announced on July 26th comprise the biggest funding round of 2022 and include housing for seniors, families, and individuals.

CEDAC’s total commitment of $6.5 million in acquisition and predevelopment financing will facilitate affordable housing development by community development corporations and other non-profit entities. CEDAC provided predevelopment and/or acquisition financing to the following six projects:


Anchor Point Phase 2

Using CEDAC acquisition financing in January of 2018, Harborlight Community Partners, Inc. (HCP) acquired a five-acre site to develop the Anchor Point project. HCP will build 77 new affordable family rental units, all two and three-bedroom units, in two phases. Each phase will consist of a three-story wood frame building with a community room, common laundry and elevator, and the two buildings will be connected by a pedestrian bridge. The first phase of the project has completed construction and celebrated its ribbon-cutting on July 29th.   Anchor Point Phase 2 (Phase 2) will include 39 units affordable to low-income households at or below 60% AMI. Sixteen units will be reserved for households at or below 30% AMI, 8 of which will house formerly homeless families. CEDAC provided $948,306 in predevelopment and $1,620,000 in acquisition funds for the project.

150 River Street

Caribbean Integration Community Development (CICD), in partnership with The Planning Office for Urban Affairs (POUA), will construct a 30-unit affordable senior housing development on a vacant, one-acre, City of Boston-owned site on River Street in Mattapan. The project consists of three studio units and 27 one-bedroom units across three floors, as well as 2,800 square feet of common space. Of the 30 units, 11 are designated for 30% AMI households, 15 are designated for 60% AMI households, and four are designated for 70% AMI households. CEDAC provided a predevelopment loan of $750,000 for the project, as well as a $15,000 loan to CICD to support this emerging minority-led community development organization.

Aileron

Neighborhood of Affordable Housing, Inc. (NOAH), is constructing 36 units of affordable rental housing and 2,550 square feet of commercial studio space for artists. The project involves a five-story building with eight units for households at or below 30% AMI, and 28 units for households at or below 60% AMI, plus a common-area work bar and art gallery, shared laundry, and a management office. In response to a neighborhood desire to support local artists, the project will also include  17 artist work-space studios (commercial) of the units, and the building will also include three shared artist studios, a common-area work bar and art gallery, shared laundry, and a management office, a building with 17 artist work-space studios (commercial) available for rent with a preference for Aileron residents. NOAH received City of Boston developer designation with their proposal which will convert the long-neglected property into productive use. At an adjacent property NOAH is developing 7 mixed income ownership units. CEDAC provided $620,000 in predevelopment loan financing.

Carol Avenue Rehab

Carol Avenue Apartments is a 100-year-old property in Brighton, which was purchased by the Allston Brighton CDC in July 2018. The project consists of the preservation of 33 units in three adjacent buildings: 6 Carol Ave. (12 units), 10 Carol Ave. (10 units) and 12 Carol Ave. (11 units).  The CDC is proposing an extensive renovation of the property which will include, among other work, new mechanical systems, windows, doors, added insulation, new ventilation, improved accessibility and new fire suppression. CEDAC provided a predevelopment loan of $250,000 for the renovation.

Belcher Apartments

Valley Opportunity Council, Inc. (VOC) will renovate an abandoned historic school building, known as Belcher School, and create 25 units of housing in Chicopee. The Belcher Apartments project will contain 25 units, including 2 one-bedroom units, 17 two-bedroom units, and 6 three-bedroom units. 22 units will serve households whose incomes are at or below 60% AMI, including 7 units reserved for households at or below 30% AMI and, in some cases, transitioning from homelessness. All residents will have access to supportive services and an on-site resident service coordinator will connect residents to various services offered by VOC and other area providers. There will be 3 market rate units and 3 fully accessible units. 43 off-street parking spaces will be created. This project received city support through inclusion in a zoning overlay district designed to assist projects like Belcher Apartments.  CEDAC committed a predevelopment loan of $290,000 for the project.

22 Johnston Way

Stow Elderly Housing Corp. (SEHC) is constructing 37 new units and rehabilitating 50 existing units for seniors with supportive services at their Stow Apartments site. Funding sources include state and federal low-income housing tax credits and subsidy funds, plus local Community Preservation Act funds. All 87 units will be restricted for seniors earning less than 60% of AMI, with additional units further restricted for seniors earning less than 30% of AMI. CEDAC provided patient acquisition and predevelopment financing totaling $2,027,500 dating back to 2011, while SEHC sought 40B zoning approvals for the new units. SEHC’s perseverance, and the town’s unwavering support, will help to address the pressing need for high quality affordable homes for seniors in Stow.


About CEDAC

CEDAC is a public-private community development financial institution that provides project financing and technical expertise for community-based and other non-profit organizations engaged in effective community development in Massachusetts. CEDAC’s work supports two key building blocks of community development: affordable housing and early care and education. CEDAC is also active in state and national housing preservation policy research and development and is widely recognized as a leader in the non-profit community development industry. For additional information on CEDAC and its current projects, please visit www.cedac.org.

Baker-Polito Administration And CEDAC Award Funds To 11 New Supportive Housing Projects

CEDAC committed predevelopment or acquisition financing to 6 of these projects – BOSTON, July 20, 2022 – The Community Economic Development Assistance Corporation (CEDAC) is proud to serve as a financing partner in the production or preservation of 11 supportive housing projects announced during the Baker-Polito Administration’s most recent Supportive Housing funding round.

CEDAC housing team joins Secretary Kennealy, Undersecretary Maddox and Kate Racer at the supportive housing announcements in Worcester.

CEDAC committed predevelopment or acquisition financing to 6 of these projects

BOSTON, July 20, 2022 – The Community Economic Development Assistance Corporation (CEDAC) is proud to serve as a financing partner in the production or preservation of 11 supportive housing projects announced during the Baker-Polito Administration’s most recent Supportive Housing funding round. The new projects represent 437 units of supportive housing and will provide essential shelter and care for individuals and families in need across the Commonwealth. CEDAC committed a total of over $5 million in early-stage financing for the production and preservation of six of these supportive housing projects.

“CEDAC is proud to collaborate with the Baker-Polito Administration and our non-profit housing partners on these new developments, which come at a time of intense need as the Commonwealth faces an ongoing housing shortage that affects the most vulnerable members of our population,” said Roger Herzog, CEDAC’s Executive Director. “We look forward to continuing our work with Undersecretary Jennifer Maddox and her team at the Department of Housing and Community Development (DHCD) as we pursue our mission to increase housing accessibility for those in need.”

CEDAC provided predevelopment and/or acquisition loans to the following projects:

  • Warren Street Housing, Boston: Commonwealth Land Trust, Inc. acquired two buildings, located at 570 and 570R Warren Street in the Grove Hall section of Dorchester, for renovation. The developer will create 26 single room occupancy (SRO) units of permanent supportive housing for vulnerable individuals. The site is located one block from Blue Hill Avenue and one-half mile from Franklin Park. All units will be affordable to individuals at or below 50% of the area median income (AMI), including 13 reserved for formerly homeless individuals at or below 30% AMI. CEDAC provided a predevelopment loan of $300,000 for the project.
  • Manley Housing Resource Center (Phase 1), Brockton: Father Bill’s & Main Spring (FBMS) will renovate and expand the former U.S. Army Reserve Center at 124 Manley Street in Brockton, which has been vacant since 2015, to create the Manley Housing Resource Center (MHRC), a multi-use facility that will provide emergency shelter, wrap-around supportive services, and permanent supportive housing, all in one location. The MHRC will be developed in two phases. The first phase, which is the subject of this award, will consist of the renovation of the U.S Army Reserve Center into a 128-bed emergency shelter and a day program center with an on-site health clinic. A 1,500-square-foot addition will house case management offices and supportive service space. CEDAC provided a predevelopment loan of $400,000 for the project.
  • Catalyst Housing, Lynn: Harborlight Community Partners, Inc. (HCP) and The Haven Project (THP) have entered into a joint venture agreement to acquire and renovate the third and fourth floors of a historic loft building located at 57 Munroe Street in downtown Lynn. The partnership will create 23 studio units for formerly homeless unaccompanied youth and one studio resident manager unit. Twenty-three units will be affordable to youth earning less than 30% of area median income. CEDAC provided a predevelopment loan of $256,252 for the project.
  • 275 Chestnut Street, Springfield: In early 2020, Home City Development Inc. (HCDI) completed construction of 101 enhanced SRO units in the four upper floors of the former YMCA building located on Chestnut Street in Springfield. HCDI is now planning to purchase an additional section of the building and will use this space on the first and second floors to create 29 additional enhanced SRO units. CEDAC provided a predevelopment loan of $220,000 and committed acquisition financing of $350,000.
  • New Point Family Apartments, Salem: North Shore Community Development Coalition’s (NSCDC) project involves the acquisition and preservation of 18 units of naturally occurring affordable housing for families in three buildings in Salem’s Point neighborhood. The project will create long term affordability where none currently exists and will fund much needed capital improvements including enhanced energy efficiency. As the occupied units turnover, NSCDC will lease the apartments to homeless families and provide supportive services. CEDAC provided predevelopment loans totaling $437,100 and an acquisition loan of $2,874,400.
  • Gordon H. Mansfield Veterans Community, Tewkesbury: Soldier On, Inc. entered into a development agreement to purchase a 1.5-acre parcel of land at 1660 Main Street in Tewksbury to construct 21 units of permanent supportive housing for veterans who are homeless or at risk of homelessness. The project will consist of 18 one-bedroom units and three studios all affordable to households earning less than 80% of area median income, including six restricted for households earning less than 30% of area median income. CEDAC provided a predevelopment loan of $225,000.

CEDAC works with DHCD on all 11 of these funded supportive housing projects through its management of several state bond programs.

About CEDAC

CEDAC is a public-private community development financial institution that provides project financing and technical expertise for community-based and other non-profit organizations engaged in effective community development in Massachusetts. CEDAC’s work supports two key building blocks of community development: affordable housing and early care and education. CEDAC is also active in state and national housing preservation policy research and development and is widely recognized as a leader in the non-profit community development industry. For additional information on CEDAC and its current projects, please visit www.cedac.org.

Featured images: a rendering of Manley Street Housing project; CEDAC housing team with Secretary Kennealy, Undersecretary Maddox and Kate Racer.

CEDAC Commits Over $7.1 Million in Early-Stage Financing to Six Community Development Projects in Third Quarter of FY22

CEDAC is proud to report that we have committed $7,125,700 in early stage financing for the production and preservation of affordable housing in 6 projects during the third quarter of Fiscal Year 2022.   Across the Commonwealth, we continue to see a healthy pipeline of housing development projects in urban neighborhoods and high opportunity suburban communities.  CEDAC’s financial and technical assistance supports non-profit community development partners to plan and build these projects, helping navigate the housing development process during the predevelopment phase to secure site control, zoning and local permitting approvals, and finally construction and permanent financing commitments.  As this year continues, we expect to assist in the creation of a large number of additional developments to meet the high demand for affordable housing from Massachusetts residents.

Read more about our lending commitments in Q3 of FY22.

Featured image: a rendering of East Boston CDC’s 2 Shawsheen Road project.

Struggling Hotel Becomes Housing for People Experiencing Homelessness

When the COVID-19 pandemic began, people living in congregate facilities — spaces with shared living areas like bedrooms and bathrooms — were especially vulnerable to infection.

At MainSpring House, an emergency shelter for people experiencing homelessness in Brockton, Massachusetts, the COVID infection rate among the 140 adult shelter guests rose to more than 30 percent in the first two months of the pandemic.

Today, those stats look very different. Some shelter guests will be moving into units of their own at the Roadway Apartments in the first quarter of 2022. What began as an emergency measure to protect MainSpring House guests’ health is now an adaptive reuse success story: An underused hotel has been transformed into 69 units of permanent supportive housing, with renovations expected to be complete this spring.

More than a stopgap

In April 2020, Father Bill’s & MainSpring (FBMS), the shelter’s operator and service provider, depopulated the facility in an effort to allow for safe social distancing and prevent further outbreaks. FBMS quickly erected outdoor tents in an adjacent parking lot and moved some guests there, but the tents were only a stopgap measure.

“We needed a viable, long-term solution to permanently reduce the shelter population, especially since many of our guests are at high risk of infection,” says John Yazwinski, FBMS’s president and CEO.

Less than three miles away from MainSpring House, the Rodeway Inn sat empty due to the surging pandemic. Seeing an opportunity, FBMS leased the entire hotel in June 2020 and swiftly relocated more than 60 shelter guests.

The move paid off. The COVID infection rate at MainSpring House plummeted to less than one percent. For guests like Charles, 70, who has serious health issues and has experienced homelessness for four years, the change was a lifesaver.

“It’s better because I have my own room. I have my own privacy,” he says. (Charles, like other FBMS clients quoted in this story, is using his first name only for privacy.)

Reimbursements from FEMA helped FBMS run the hotel temporarily as an emergency non-congregate shelter, but FBMS knew the subsidies wouldn’t last. FBMS approached the hotel’s owner and negotiated a purchase for $4.2 million.

Zoning tools and funding

As the project’s potential came into view, the state’s Department of Housing and Community Development (DHCD) announced in August 2020 that it would make up to $10 million available in capital resources for creating permanent supportive housing.

“As COVID-19 revealed, the lack of affordable housing in the Commonwealth is a public health crisis, particularly for those most vulnerable among us,” says Massachusetts Housing and Economic Development Secretary Mike Kennealy. The project received more than $7 million in subordinate debt and 69 operating subsidies from DHCD for renovation of hotel rooms into enhanced single room occupancy (SRO) units with kitchenettes. (See the table below for a fuller picture of the project’s funding.)

FBMS also needed the support of its partners at the local level, since the change in use from hotel to housing required city approval. But there was no time for a potentially lengthy public permitting process, given the still-surging pandemic.

FBMS used a zoning tool available in Massachusetts known as the Dover Amendment, which exempts nonprofit organizations providing educational services from land use and dimensional requirements. This tool allowed the homeless service provider to quickly secure its building permit without the need for a public process.

“We were happy to support FBMS in bringing new housing and much-needed services into our community,” says Brockton Mayor Robert Sullivan, whose administration helped confirm the applicability of the Dover Amendment.

To afford the acquisition price, FBMS needed a mission-driven lender that understood the project’s complex layering of public and private financing. FBMS turned to the Community Economic Development Assistance Corporation (CEDAC), a quasi-public community development financial institution that provides early-stage financing to nonprofits that develop affordable housing across Massachusetts.

“CEDAC was established in 1978 by then-state representative Mel King to support projects just like this one with financial and technical assistance,” explains CEDAC’s Executive Director, Roger Herzog.

In January 2021, CEDAC approved the $4.2 million acquisition loan to FBMS, which closed on its purchase of the property in March, ensuring that the 69 people living at the hotel temporarily would be able to stay permanently.

Renovated rooms include a bed, bath, dining area, and a kitchen with built-in storage. Photo courtesy of Father Bill’s and MainSpring.

Renovated rooms include a bed, bath, dining area, and a kitchen with built-in storage. Photo courtesy of Father Bill’s and MainSpring.

Overnight, the congregate shelter population in Brockton was cut in half. The timing couldn’t have been better for Russell, who began experiencing homelessness at the height of the pandemic after struggling with substance use disorder.

“Without them, I would have nothing. I would be on the streets,” says Russell, citing FBMS’s efforts.

A replicable model

Brockton, with a population of 105,000, sits 25 miles south of Boston. The Roadway Apartments building is ideally located across the street from the Brockton VA Medical Center, and two nearby bus lines serve the downtown Brockton commuter rail station. A large shopping center is just a mile away and FBMS’s administrative offices lie just beyond that.

Residents also have access to a comprehensive set of wrap-around supportive services provided by FBMS’s on-site staff, which has already made a huge difference for Russell, who is celebrating one year of sobriety. “I’ve never really lived on my own, so it will be pretty cool to have my own space,” he says.

Since FBMS first proposed its hotel conversion, CEDAC has been providing technical assistance to several other organizations around the state interested in replicating this Housing First model. The success of future efforts “will require continued state capital and operating funds and dedicated service funding,” says CEDAC’s Herzog, particularly with more than 1,200 people still living completely unsheltered in Massachusetts.

FBMS began renovations in September 2021 and the first batch of units were finished soon after, in November. Charles will be one of the first residents to move into a completed unit, which will allow him to conveniently get to his doctor’s appointments. “This is the best thing that will ever happen,” he says.

Will Morgan is an affordable housing project manager at CEDAC.

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SourcePlanning Magazine