MassHousing Provides $14.3 Million Financing for a Non-Profit Developer

The MassHousing financing package will enable major renovations at the four-story development, and will resolve expiring affordability challenges at the property by extending affordability in perpetuity.

MassHousing provided Fenway CDC with a $3.8 million construction and permanent loan, a $5.5 million bridge loan, and $5 million from the Agency’s Opportunity Fund, which provides financing for MassHousing’s Workforce Housing Initiative and 13A Preservation Initiative.

Twenty-eight of the 52 units preserved at Burbank Gardens were originally financed under the state’s Section 13A housing affordability program, making them high preservation risks.

“With this refinancing, Burbank Gardens will remain a true mixed-income community, preserving a critical housing affordability resource in Boston,” said MassHousing Acting Executive Director Tom Lyons. “The scope of Massachusetts’s 13A preservation challenge is significant, with roughly 2,800 affordable units set to lose their affordability protections over the next three years, and no federal resources available for their preservation. The successful preservation of Burbank Gardens shows that, with committed partners like the Fenway CDC, the Department of Housing and Community Development, and the City of Boston, we can overcome the preservation challenges we face, and protect tenants at risk of displacement.”

31 BURBANK ST. BURBANK GARDENS

The Commonwealth’s Section 13A program was created by the Massachusetts Legislature in the 1970s to provide low-interest mortgage financing to affordable housing communities. Today, 13A communities serve some of the lowest-income and most vulnerable populations in Massachusetts, including many elderly residents. The mortgages on these 13A housing communities are nearing maturity. In response, MassHousing and the Department of Housing and Community Development (DHCD) have committed a total of $100 million in capital to help preserve affordable 13A units that otherwise would convert to market rates.

The Burbank Gardens refinancing transaction resolves the expiring Section 13A rental subsidy on 28 of the 52 affordable units. Thirteen currently unrestricted units will convert to workforce housing apartments that will be affordable to moderate-income households earning up to $93,100 a year for a family of four. The remaining 39 units will be for low-income households earning between $31,000 and $62,040 a year for a family of four.

Fenway CDC acquired and preserved Burbank Gardens under Chapter 40T, a state law designed to help prevent affordable housing from being sold and converted to market-rate rents. DHCD administers Chapter 40T.

DHCD provided $3 million in financing and allocated Low-Income Housing Tax Credits that generated $4.8 million in financing for the $20.8 million transaction. The Community Economic Development Assistance Corporation (CEDAC) provided an $8.6 million acquisition loan, and the City of Boston contributed a total of $3.5 million in acquisition and preservation financing.

“We had been working with the management and residents at Burbank Gardens for a couple of years, laying the groundwork for preserving affordability for the residents,” said Leah Camhi, Fenway CDC’s Executive Director. “When the property came on the market, we dropped everything else to make sure that the tenants would be protected. Unlike most affordable housing deals, this was a sprint to the finish. We’re thrilled to be able to preserve the affordability in perpetuity as well as do much-needed updates to the building.”

Fenway CDC is undertaking approximately $4 million in property renovations at Burbank Gardens, including:

Construction of an accessible entry ramp and installation of a groundwater recharge system;
Repair and replacement of exterior balconies, windows, and doors;
Repair and replacement (including accessibility upgrades) of interior stairs, walkways, elevators and common areas, including the trash room, laundry room, mail room, and kitchen;
Repair and replacement (including accessibility upgrades) of unit kitchens, bathrooms, and flooring;
Life and safety improvements including fully-compliant fire alarm and sprinkler systems; and
Plumbing, electrical, and mechanical improvements.

Burbank Gardens is located at 31 Burbank St. in Boston and has 28 studio units, 22 one-bedroom apartments and 2 two-bedroom apartments in a four-story, brick building.

MassHousing has financed 6 affordable rental housing communities in the Fenway/Kenmore neighborhood totaling 766 units with $135.5 million in financing and has provided $1.1 billion in home mortgage financing for 8,217 homeowners in Boston.

MassHousing Provides $14.3 Million Financing for a Non-Profit Developer

SourceBoston Real Estate Times

Major Renovation of the 52-Unit Burbank Gardens in Boston is Underway, Resulting from $14.3 Million in MassHousing Financing

MassHousing has provided a total of $14.3 million in financing to the
nonprofit Fenway Community Development Corporation, for the renovation and preservation of 52
affordable housing units at the Fenway CDC’s Burbank Gardens community in Boston’s Fenway
Neighborhood. The MassHousing financing package will enable major renovations at the four-story
development, and will resolve expiring affordability challenges at the property by extending affordability
in perpetuity.
MassHousing provided Fenway CDC with a $3.8 million construction and permanent loan, a $5.5 million
bridge loan, and $5 million from the Agency’s Opportunity Fund, which provides financing for
MassHousing’s Workforce Housing Initiative and 13A Preservation Initiative. Twenty-eight of the 52
units preserved at Burbank Gardens were originally financed under the state’s Section 13A housing
affordability program, making them high preservation risks.
“With this refinancing, Burbank Gardens will remain a true mixed-income community, preserving a
critical housing affordability resource in Boston,” said MassHousing Acting Executive Director Tom
Lyons. “The scope of Massachusetts’s 13A preservation challenge is significant, with roughly 2,800
affordable units set to lose their affordability protections over the next three years, and no federal
resources available for their preservation. The successful preservation of Burbank Gardens shows that,
with committed partners like the Fenway CDC, the Department of Housing and Community
Development, and the City of Boston, we can overcome the preservation challenges we face, and
protect tenants at risk of displacement.”
The Commonwealth’s Section 13A program was created by the Massachusetts Legislature in the 1970s
to provide low-interest mortgage financing to affordable housing communities. Today, 13A communities
serve some of the lowest-income and most vulnerable populations in Massachusetts, including many
elderly residents. The mortgages on these 13A housing communities are nearing maturity. In response,
MassHousing and the Department of Housing and Community Development (DHCD) have committed a
total of $100 million in capital to help preserve affordable 13A units that otherwise would convert to
market rates.
Major Renovation of the 52-Unit Burbank Gardens in Boston is Underway, Resulting from
$14.3 Million in MassHousing Financing
| Page 2 of 3 |
The Burbank Gardens refinancing transaction resolves the expiring Section 13A rental subsidy on 28 of
the 52 affordable units. Thirteen currently unrestricted units will convert to workforce housing
apartments that will be affordable to moderate-income households earning up to $93,100 a year for a
family of four. The remaining 39 units will be for low-income households earning between $31,000 and
$62,040 a year for a family of four.
Fenway CDC acquired and preserved Burbank Gardens under Chapter 40T, a state law designed to help
prevent affordable housing from being sold and converted to market-rate rents. DHCD administers
Chapter 40T.
DHCD provided $3 million in financing and allocated Low-Income Housing Tax Credits that generated
$4.8 million in financing for the $20.8 million transaction. The Community Economic Development
Assistance Corporation (CEDAC) provided an $8.6 million acquisition loan, and the City of Boston
contributed a total of $3.5 million in acquisition and preservation financing.
“We had been working with the management and residents at Burbank Gardens for a couple of years,
laying the groundwork for preserving affordability for the residents,” said Leah Camhi, Fenway CDC’s
Executive Director. “When the property came on the market, we dropped everything else to make sure
that the tenants would be protected. Unlike most affordable housing deals, this was a sprint to the
finish. We’re thrilled to be able to preserve the affordability in perpetuity as well as do much-needed
updates to the building.”
Fenway CDC is undertaking approximately $4 million in property renovations at Burbank Gardens,
including:
• Construction of an accessible entry ramp and installation of a groundwater recharge system;
• Repair and replacement of exterior balconies, windows, and doors;
• Repair and replacement (including accessibility upgrades) of interior stairs, walkways, elevators
and common areas, including the trash room, laundry room, mail room, and kitchen;
• Repair and replacement (including accessibility upgrades) of unit kitchens, bathrooms, and
flooring;
• Life and safety improvements including fully-compliant fire alarm and sprinkler systems; and
• Plumbing, electrical, and mechanical improvements.
Burbank Gardens is located at 31 Burbank St. in Boston and has 28 studio units, 22 one-bedroom
apartments and 2 two-bedroom apartments in a four-story, brick building.
MassHousing has financed 6 affordable rental housing communities in the Fenway/Kenmore
neighborhood totaling 766 units with $135.5 million in financing and has provided $1.1 billion in home
mortgage financing for 8,217 homeowners in Boston.
Major Renovation of the 52-Unit Burbank Gardens in Boston is Underway, Resulting from
$14.3 Million in MassHousing Financing
| Page 3 of 3 |
About Fenway Community Development Corporation
Fenway CDC was incorporated in 1973 with a vision to both preserve and develop affordable housing
and affirmatively advance the community’s vision. Since their founding, Fenway CDC has expanded to
provide programs and services to improve the quality of life of residents and build a healthier
community by providing mixed-income housing, social support services, workforce development, and
civic engagement programs. On their own and in partnership, Fenway CDC has developed nearly 500
affordable homes, housing about 1,500 people, including people with AIDS and mental illness, seniors,
and families. For more information please visit www.Fenwaycdc.org.
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 mixedincome
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 $22 billion for affordable housing. For more information, visit the
MassHousing website at www.masshousing.com, follow us on Twitter @MassHousing, subscribe to our
blog and Like us on Facebook.

Burbank Gardens Renovation Begins In Fenway

SourceBoston Bisnow

Upgrades Set To Begin At Fenway Complex

Longtime renters in the Boston’s Fenway neighborhood have felt the squeeze from rising rents and conversion of apartments into off-campus housing.

The acquisition of the Burbank Gardens property by the Fenway Community Development Corp. will retain 52 income-restricted units for low-income and disabled residents, averting the Haviland Street complex’s conversion to market-rate housing. Renovations to the property are scheduled to begin in January.

The complex is one of 12 in the city that will lose their funding under the state’s 13A mortgage subsidy program in the next few years. The property is the first in Boston to be acquired by a nonprofit group.

“The seller had an opportunity to sell it on the full market and we were able to strike a deal (through) some shrewd negotiating by our real estate director and maintain the affordability in perpetuity for the residents in the 52 units residing in this absolutely beautiful building,” said Leah Camhi, executive director of the Fenway CDC.

The financing package includes $2.5 million in acquisition financing and $2.5 million in permanent financing from community development block grant funding from the city of Boston. MassHousing provided $5 million in acquisition debt, a $3.8 million construction and permanent tax-exempt bond financing and a $5.4 million bridge loan. Community Economic Development Assistance Corp. provided a $8.3 million temporary acquisition loan.

As a result, 39 units will be retained for households earning a maximum 60 percent of the area median income. Nine will be set aside for households earning 80 percent of AMI, and four will be preserved at 90 percent of AMI.

Leah Camhi, executive director of the Fenway CDC, discusses the preservation of affordability at Burbank Gardens:

https://www.bankerandtradesman.com/upgrades-set-to-begin-at-fenway-complex/?utm_campaign=Daily&utm_source=hs_email&utm_medium=email&utm_content=57398756&_hsenc=p2ANqtz-8BlMFAdSmQYy_2Pt79GPPRct5_TVaVnHCqZLUy86x70BhX9cjX6i7AQjEZH0klaIaSOn2uUcU7zBrgt7BilXrojwtRAw&_hsmi=57398756

SourceBanker & Tradesman

CEDAC Commits $8.5M To Preserve Affordable Housing In Fenway

The Community Economic Development Assistance Corp. (CEDAC) recently committed over $8.5 million in financing to Fenway Community Development Corp. (Fenway CDC) to purchase and preserve Burbank Gardens, an existing affordable housing development located in the Fenway.

In 2009, the Massachusetts legislature passed Chapter 40T into law, giving the state’s Department of Housing and Community Development (DHCD) and CEDAC tools to monitor and address the expiring use challenge.

When the seller of Burbank Gardens put the property on the market in early 2016, Fenway CDC was designated by DHCD through Chapter 40T to purchase and preserve the 52-unit residence. The seller accepted Fenway CDC’s offer in September 2016.

“Preserving Burbank Gardens is an important step in the Commonwealth’s ongoing efforts to maintaining affordable housing,” Roger Herzog, CEDAC’s executive director, said in a statement. “It demonstrates once again that the innovative Chapter 40T law remains an effective tool and is a national model for preserving quality affordable housing.”

CDC plans to ensure that 51 of the 52 apartments remain affordable for low and moderate income households. The property currently consists of 52 studio, one- and two-bedroom apartments. CEDAC provided a $313,000 predevelopment loan and, with participation by Eastern Bank, an $8,268,525 acquisition loan to Fenway CDC for this important preservation effort.

http://www.bankerandtradesman.com/2017/04/cedac-commits-8-5m-preserve-affordable-housing-fenway/

SourceBanker & Tradesman