Under The Radar: Affordable Senior Housing Communities Need Support To Fight COVID-19

MassHousing has closed on $2.8 million in affordable workforce housing financing to The Community Builders for the ongoing construction of the 12-unit 35 Village Hill Road in Northampton. Valley Community Development Corporation is the project co-sponsor.

The new housing, which is being developed on the site of the former Northampton State Hospital, will feature 10 workforce housing apartments for moderate-income households and two deeply affordable units for clients of the Massachusetts Department of Mental Health (DMH).

“MassHousing is pleased to support The Community Builders and Valley Community Development in their transformation of a vacant lot into new homes for working households and residents in need,” said MassHousing Executive Director Chrystal Kornegay. “We’re happy that these new homes will serve working and disabled households for many years into the future.”

“The Community Builders is excited to once again be expanding housing opportunities at Village Hill in Northampton. Our organization is committed to building strong communities where all people can thrive. We are grateful to MassHousing and our other state and local partners who help us make this work possible” said TCB Director of Development Rachana Crowley.

“Valley Community Development is proud to be part of increasing the economic diversity of housing options at Village Hill,” said Valley’s Executive Director Joanne Campbell.

The 12 new apartments will be contained in one building, which will also have first-floor commercial space. Ten of the apartments at 35 Village Hill Road will be workforce housing units affordable to moderate-income households. Six of the workforce housing units will be deed-restricted for households earning at or below 120 percent of the Area Media Income (AMI), and four will be workforce units for households earning at or below 80 percent of AMI. Additionally, two units will be deeply affordable for DMH clients and will be supported by federal Section 8 project-based vouchers. The AMI for Northampton is $76,000 for a household of four.

There will be two studio apartments, six one-bedroom apartments and four two-bedroom apartments. Construction is expected to be completed in September.

MassHousing is providing TCB with $1.4 million in permanent financing, and $1.4 million in workforce housing funding from the Agency’s Workforce Housing Initiative.

In addition to the MassHousing financing, the Massachusetts Department of Housing and Community Development (DHCD) is providing the project-based vouchers and $1.5 million in direct support. The project also received $1.3 million in funding through the Community Scale Housing Initiative (CSHI), a joint initiative of DHCD and MassHousing that funds smaller-scale affordable rental developments.

The Community Economic Development Assistance Corporation (CEDAC) is providing $360,000 in financing, the City of Northampton contributed $200,000 in local Community Preservation Act funding and Citizens Bank is providing $2.5 million in construction financing.

35 Village Hill Road advances the Baker-Polito Administration’s goal of creating up to 1,000 new workforce housing units affordable to middle-income households through MassHousing’s Workforce Housing Initiative. Since the inception of the initiative in 2016, MassHousing has committed or closed workforce housing financing totaling $98.2 million, to 45 projects, located in 21 cities and towns. To date, the Workforce Housing Initiative has advanced the development of 4,030 housing units across a range of incomes, including 1,096 workforce housing units.

The general contractor is Western Builders. The architect is Davis Square Architects and the management agent is TCB.

MassHousing has financed five rental housing communities in Northampton totaling 642 units of housing with an overall original loan amount of $33.4 million and the Agency has also provided home mortgage loans to 427 homebuyers and homeowners with an original purchase principal balance of $31.2 million.

SourceHealth Affairs

Sisters of Providence break ground on $10M affordable housing with elder care services in West Springfield

WEST SPRINGFIELD — The Sisters of Providence have broken ground on Hillside Residence, a $10 million project to build 36 units of affordable, elder care housing on the 27-acre Providence campus at 2112 Riverdale St.

The project calls for integrating housing for residents age 62 or older with the health services they will need as they grow older, according to Sister Kathleen Popko, president of the Sisters of Providence.

“At times, the dream seemed futile,” Popko told the crowd gathered Friday at the site where the housing will soon rise, recalling the ups and downs of trying to secure project funding over the years.

The goal, the Catholic nun said, is to build safe, affordable housing for “frail elders” who will also require health services as they age. That is where Mercy LIFE’s PACE program — “Program for All-inclusive Care of the Elderly” — enters the picture.

PACE, a Medicare and Medicaid program, will help low-income seniors at risk of being institutionalized who also need the level of care provided in nursing facilities. Because the project has secured a commitment from the state to help with rental subsidies, the housing cost for residents of Hillside will be capped at 30 percent of their income, according to Popko.

In addition to helping at-risk seniors secure a home, Joseph Larkin, executive director of Mercy LIFE, says Hillside will provide older residents with the human connection they need, including opportunities to share meals and other forms of socialization.

“Loneliness is a significant risk factor,” Larkin said.

Popko praised West Springfield Mayor William C. Reichelt for his ongoing support of the project. “He has facilitated our efforts,” she said of the mayor, calling him “a friend and supporter.”

Sen. James T. Welch and Rep. Michael J. Finn, West Side’s Statehouse delegation on Beacon Hill, were also on hand for the event, which drew about 100 people including local and state dignitaries. Popko says Welch and Finn have been strong supporters of the project by the Sisters of Providence.

“This really is the next cutting-edge of health care in Massachusetts. These are the types of projects we’re always continuously looking for,” Welch, Senate chairman of the Joint Committee on Health Care Financing, said of Hillside Residence.

“Congratulations and thank you for your tenacity and stick-to-itiveness,” he said, directing his remarks to the Sisters of Providence and Mercy LIFE officials in attendance.

“We’re all here today because we’re invested in Hillside Residence,” said Janelle Chan, newly appointed undersecretary for Housing and Community Development, which oversees the state’s affordable housing programs, community service, and assistance for homeless people.

State Elder Affairs Secretary Alice Bonner noted that Popko and Sister Mary Caritas Geary, vice president of Sisters of Providence, have been “powerful and tenacious” advocates for the Hillside Residence project, never giving up “despite rejection after rejection.”

“It’s about creating campuses where people can age together with the services they need,” said Bonner, adding that Hillside Residence will serve as a model for how to live and age well in Massachusetts. To create a truly integrated support system for older residents, “it has to be about housing plus services,” she said.

The project will cater to people age 62 or older with incomes at 50 percent of the area median income or lower, and those whose healthcare needs and “housing instability” can be helped by the integrated program.

The project is being financed by public and private sources, including state and federal assistance, $750,000 in Community Preservation Act funds from the Town of West Springfield, and grants from the Harry and Jeanette Weinberg Foundation.

Key financing sources include the Housing Stabilization Fund, the National Housing Trust Fund, the Housing Innovation Fund Program, and the Massachusetts Rental Voucher Program.

Also speaking at the event were Roger Herzog, executive director of the Community Economic Development Assistance Corporation, and Paul Boudo, chairman of the West Springfield Community Preservation Committee.

Boudo and Popko pitched the project to the West Springfield Town Council in January. The following month, the council unanimously authorized using $750,000 in CPA funds for the project.

Boudo says Hillside Residence will help West Side reach its state-mandated 10 percent affordable housing goal. Only around 3.5 percent of the town’s housing is considered affordable.

The project’s “development team” includes Kathleen Lingenberg of Community Outcomes LLC; John Wesolowski, chief financial officer of Sisters of Providence Inc.; architects Greg Zorzi and Chris Novelli of Studio One Inc.; Randall Locklin of Locklin Construction Co., and Christopher Boino and his team at Western Builders Inc.

Bishop Mitchell T. Rozanski, leader of the Roman Catholic Diocese of Springfield, gave the closing blessing at Friday’s ceremony.

SourceMassLive

Benfield developer requests tax agreement

Wednesday, January 30 2013

Benfield developer requests tax agreement

by Cecile Sandwen

Whereas most property in Carlisle is taxed on a market value, the Benfield developer has asked for an income-based approach for the as-yet-unbuilt Benfield Farms affordable senior housing. This is because affordability restrictions will limit rental income, and thus ability to pay taxes. All 26 units must be affordable. The Carlisle Board of Assessors (BOA) agree that the income method is reasonable, but will be reviewing the numbers carefully.

The Neighborhood of Affordable Housing (NOAH) will be the developer and manager of the affordable senior housing and has submitted a letter dated January 7 to the BOA requesting a preliminary tax determination. The letter is required in order to obtain financing, and would show that the town is in agreement on the methodology even though a determination of value cannot be finalized until the project is completed.

Based on the results from other towns, NOAH has projected income and expenses for the first stable year and proposed a value for FY15 of $1,313,013. A memo from Assessor Melissa Stamps indicated that at this level, estimated taxes would be $23,214 and the CPA surcharge at 2% would be $429.

It may surprise some that NOAH, a non-profit, would be paying taxes. A subsidiary for-profit, Benfield Farms Limited Partnership, will be the owner of Benfield in order to take advantage of low-income housing financing programs. As a result, the property will be taxable.

BOA Chair Jim Marchant said that he met with NOAH on January 28, and there are some issues still to be resolved. Marchant said that any agreement now could be changed once actual income and expenses are known. He noted, however, that there is currently no similar taxed entity in Carlisle, as Village Court is a non-profit. The board is conscious of the precedent that could be set for any future 40B projects.

The letter from NOAH also proposes enhanced services in lieu of taxes. A residential service coordinator would provide for “senior activities and needs that can assist tenants in the building and participant seniors in town.” Marchant noted that this and any other proposals will considered. He expects a letter outlining the agreement to be issued next week. NOAH hopes to complete financing and begin construction in the spring.

Loans announced

On January 17, The Community Economic Development Assistance Corporation (CEDAC) announced it will be providing loans in the amount of $514,000 for the project. “We are always thrilled to see progress in affordable housing production projects that help those in need,” said Roger Herzog, executive director of CEDAC. “The Benfield Farms project in Carlisle will provide local seniors in need with access to quality, affordable homes that will facilitate independent living.” The announcement noted this “will help build housing options in a region that lags behind other parts of the state when it comes to affordable housing.” ∆

SourceCarlisle Mosquito, The

Seniors at home in old Lee school

Seniors at home in old Lee school
By Jenn Smith, Berkshire Eagle Staff
LEE — The halls of the former Lee Central School have been reopened and are bustling with new life.
On Friday morning more than 50 senior citizens joined state and local dignitaries and members of Elder Services of Berkshire County to celebrate the new Crossway Tower, a 13-unit annex of affordable one-bedroom apartments that are available to seniors.
The new facility joins Crossway Village, which consists of 38 one-bedroom apartments that were created five years ago in the other two-thirds of the High Street building.
“I love it. I’m back in Lee, back where all my friends are. I’m home,” said Betty Hodgkins, a Crossway Tower resident.
The new apartments are located in the school building’s historic Hyde Wing, which was built in 1894. The $3.8 million project that Elder Services began 14 months ago also preserved the façade and bell-tower of the century-old school.
A combination of funds from the U.S. Department of Housing and Urban Development (HUD) and the state Dept. of Housing and Community Development, with support from the Community Economic Development Assistance Corporation and the town, enabled NL Construction to build the new facility. Berkshire Housing Development Corp., which manages Crossway Village for Elder Services, will also manage Crossway Tower.
Residents began moving into the new wing back in April, but Friday marked both the official opening of the wing, and the announcement that all 13 units have been filled.
“There’s a very high demand for senior housing in the county,” said Nicholas Kirchner, fiscal director of Elder Services.
At Crossway Tower, residents pay 30 percent of their income for rent. HUD pays the difference through what is known as a project rental assistance contract.
The units are spacious, averaging 1,000 square feet. Each floor of the housing project includes community rooms, laundry facilities and space for families and friends to visit. Small pets are OK, too. Also accessible on the campus are the Lee Council on Aging, a hair salon and weekday lunch services.
“It’s like a hotel,” said John Turner, who lives in a Crossway Tower apartment with his wife of 62 years, Barb.
“This is ideal for us because we have a big family and they can comfortably visit,” he said.
The amenities and downtown location have already attracted dozens of hopeful tenants: Crossway Tower has a waiting list of 29 people, while 20 more are waiting to receive a Crossway Village apartment.
Applications to create 20 senior housing units in Dalton and 24 units in Clarksburg are currently being reviewed, Kirchner said.
Elder Services Executive Director Robert Dean said he hopes the Crossway projects will serve as a successful model for future affordable senior housing projects in the Berkshires.
“This is a shining example of what senior housing could and should be,” he said.