MHP, CEDAC kick off 2nd Worcester CDC series

A second series of workshops aimed at helping Worcester’s community development organizations (CDCs) build capacity began this week with a session on fundraising.

Held on January 9 at the Worcester Clean Tech Incubator, the event featured presentations by fundraising consultant Sarah Tanner and John Fitterer of the Massachusetts Association of Community Development Corporations. Fitterer talked about how CDCs have raised funds through the state’s Community Investment Tax Credit Program.

The event was attended by board and/or staff members from the Oak Hill CDC, the East Side CDC, Main South CDC, Worcester Common Ground and Centro Inc.

Sponsored by the Massachusetts Housing Partnership, the Community Economic Development Assistance Corporation (CEDAC) and Clark University, the 2019 training series is planning future sessions on public health and housing, board development and training, collaboration and partnership models and taxes.

In 2018, CEDAC, MHP and Clark hosted two-hour workshops on financial reporting, board development, asset management and collaboration.

The January 9 session on fundraising was preceded by a dinner and networking event hosted by Lionel Romaine of CEDAC, Kate Bosse of MHP and Kathyrn Madden, an urban planner and visiting lecturer at Clark University who has over 25 years of experience helping cities and institutions shape their future development.

The CDC workshop series builds upon CEDAC and MHP’s longstanding support of Worcester CDCs and neighborhoods. MHP efforts include supporting rental development and homeownership efforts of Worcester Common Ground, the Main South CDC and in the Bell Hill-East Side neighborhood in collaboration with the East Side CDC and UMass Memorial Hospital.

In all cases, MHP used its ability to bring in private financing to support community reinvestment through its bank-funded loan pool and its ONE Mortgage Program for low- and moderate-income first-time buyers. MHP has used its bank-funded loan pool to provide $16.9 million in loans and commitments for the financing of 32 rental projects and 521 apartments, 367 of them affordable. MHP’s ONE Mortgage Program has helped 816 low- and-moderate-income households in Worcester purchase their first home, generating $125.6 million in private mortgage financing from participating banks. About 69 percent of those buyers had incomes below 80 percent of area median income.

For more information about this program and MHP’s community assistance work with CDCs, contact Katie Bosse at kbosse@mhp.net or 617-330-9944 x128.

SourceMHP News

Small town Goshen thinks big, shows what will and local money can do

In celebrating the grand opening of 10 affordable apartments for seniors, the Town of Goshen demonstrated what can be done when residents have initiative and local money they can use for housing.

That’s the point local resident Don Boisvert made when he stepped up to the microphone at opening ceremonies on Sept. 28. A member of the town’s Community Preservation and Senior Housing committees, Boisvert traced the genesis of Goshen Senior Housing back to 2008 when voters passed the Community Preservation Act, which allows communities to impose a surcharge on residents and then use the funds for open space, historic preservation or affordable housing.

Boisvert (pictured) told the audience of about 50 residents gathered at Town Hall that a short time after the town adopted CPA, the sentiment among the locals was “let’s get something going around senior housing.” He went onto explain that having CPA was key because you need money and “you can’t just have a notion.” Soon after, Town Meeting approved the use of CPA funds for housing. By 2010, the senior housing committee began looking for a site.

Eight years later, their desire to do something for their community became a reality. Ten senior households now have a safe, affordable place they can afford. “The Town of Goshen has set an example for rural America about how small communities can come together and do something to protect their way of life,” said Dave Christopolis, executive director of the Hilltown Community Development Corp., the regional nonprofit that developed the $2.5 million project. “There has been disinvestment in rural areas but coming together to work on projects like this is what can help put rural towns back on the map.”

Located about 10 miles northwest of Northampton as the crow flies, Goshen has a population of just over 1,000. The new housing was built on a site acquired by the Hilltown CDC from the Goshen Congregational Church thanks to an acquisition loan from the state’s Community Economic Development Assistance Corporation (CEDAC). There are two four-family buildings on the property and one two-family home. They are located next to the Congregational Church and across the street from the Town Hall and senior center.

The Massachusetts Housing Partnership (MHP) supported the effort by first providing Hilltown CDC with a Project Eligibility Letter, which a developer needs to apply to the town for a Ch. 40B comprehensive land use permit. Ch. 40B was needed in this case because the site was not zoned for multi-family. MHP also provided the project $500,000 in permanent financing from its $1.2 billion bank-funded loan pool, which has financed over 22,000 rental units across Massachusetts.

“This is a development that addresses the community’s need for senior affordable housing,” said David Hanifin, an MHP senior loan officer. “This was done thoughtfully because it had true community support.”

Granting Hilltown CDC the zoning to do the development wasn’t the only thing the Town of Goshen provided. The town also contributed $130,000 in CPA funds. Additional funding was provided by the state Department of Community Development (DHCD), and the state’s Affordable Housing Trust Fund, which is administered by MassHousing. People’s United Bank provided the construction loan and provided support for a subsidized advance award from the Federal Home Loan Bank. “All the lenders and state agencies went out of their way to understand our community and what we needed,” said Christopolis.

The result was housing that the town needs. At a luncheon and a tour of the housing after the speeches were done, all the residents we met told the same story: they were previously living in homes that were too big and/or in disrepair and they were happy to be living in an apartment that was safe, more affordable and on one level with no stairs.

Frank and Nancy Kosior are one example. Married for 58 years, they raised four children in their home in Williamsburg and lived there for 52 years. But as time wore on, Nancy started to have trouble walking and pretty soon Frank had to carry her up the stairs. They loved their home and didn’t want to leave, but now they know it was the right thing to do.

“It’s the smartest move I made,” said Frank, a local carpenter who gave his tools to his grandson when he moved up Route 9 from Williamsburg to Goshen. “This place is easier on Nancy and easier on me.”

They did mention rather matter-of-factly seeing a bear wander through their new backyard during the summer. When someone from the Boston area looked slightly alarmed, he was told that’s why residents are advised not to put bird seed out, especially in the summer.

For more information about this development and MHP’s financing options for multi-family rental properties big and small, visit MHP’s rental financing home page or email MHP’s David Rockwell at drockwell@mhp.net or Nancy McCafferty at nmccafferty@mhp.net

SourceMHP News

Back in session: Carter School turning into apartments

It’s been more than 30 years since the sounds of learning have been heard inside the three-story brick building at 261 West St.

Soon, adults and children will be walking the halls again — and this time, they will call it home.

A ceremonial groundbreaking ceremony Wednesday, Aug. 29 marked the start of the conversion of the former Carter Junior High School into 39 units of affordable housing.

The building will have 14 one-bedroom apartments, 21 two-bedroom units and four three-bedroom units when work is complete, which is expected to take about a year and cost about $17 million.

There will also be storage for tenants, an exercise room, community space and parking. The building’s exterior and its boiler will be historically restored.

Each unit would be classified as affordable, according to documents from the Commonwealth of Massachusetts, including 16 units that would be affordable to households earning less than 30 percent of the region’s median income.

The hope, according to a press release from building owner NewVue Communities, is for the building to be certified by Enterprise Green Communities and placed on the National Register of Historic Places.

Built in 1904, the former Carter School was named after James Gordon Carter, a Leominster native, teacher and member of the first Massachusetts Board of Education. It served as the city’s high school until 1963; in fact, the building still bears the Leominster High School inscription above the front entrance. Then, from 1964-84, the Carter School was a junior high school.

The City of Leominster sold the Carter School to a private developer in 2000, but attempts to redevelop the building were not successful. NewVue Communities, based in Fitchburg, bought the building in 2016.

“It was such a significant part of Leominster’s rich history, and it broke my heart to see it in such terrible condition,” said NewVue Vice President Bill Brassard, Carter Junior High School Class of 1981. “I am proud to be part of a team that will revitalize this building and create a new use for it.”

NewVue Communities teamed up with city officials, Davis Square Architects, Hutter Construction and Wingate Companies to bring the Carter School project to the phase celebrated last week. Wingate, which will manage the building for NewVue, will start accepting apartment applications in the summer of 2019.

“We are excited to be here today,” Leominster Mayor Dean Mazzarella said. “This building was in such tough shape that we did not know how to redevelop the building. Given NewVue’s track record of taking on the most challenging projects with great success, I was thrilled when they asked us to partner with them to create affordable housing that is such an important part of Leominster’s history.”

The Carter School is NewVue’s second affordable housing project in Leominster. The first was Water Mill Apartments on Water Street.

Project partners and funders for the Carter School renovation include the City of Leominster, the Fitchburg-Leominster HOME Consortium, the state Department of Housing and Community Development, the Massachusetts Housing Investment Corporation, Avidia Bank, the Massachusetts Historical Commission, the Massachusetts Affordable Housing Trust Fund, the National Park Service, NeighborWorks America, the Community Economic Development Assistance Corporation, the Massachusetts Housing Partnership and the TD Charitable Foundation.

SourceLeominster Champion

Former Leominster school being converted to affordable housing

NewVue Communities is helping to breathe new life into the former Carter Junior High School, which has been vacant more than 30 years.

Wednesday, state and local officials and community leaders, some of whom attended Carter Junior High at 261 West St., across from the West End Diner, gathered under a tent for a groundbreaking ceremony outside the three-story brick school building to kick off its redevelopment into 39 affordable housing units.

Leominster Mayor Dean J. Mazzarella said that in 1985, former Mayor Richard J. Girouard Sr. asked Mr. Mazzarella and his business partner, who were in construction at the time, to tour the deteriorating building and consider redeveloping it. The school – built in 1904 and named after Leominster native and teacher James Gordon Carter, who was a member of the first Massachusetts Board of Education – served as the city’s high school until 1963, then a middle school from 1964 until 1984, when it was left vacant.

“I walked through the building with my partner and said, ‘If you give us the building and $100,000, we’ll do it over,’ ” Mr. Mazzarella said, adding that the cost of the project outweighed the benefits at the time.

After showing it himself to potential buyers “a million times,” the mayor said, he is excited about NewVue’s team effort and passion to see the project through. NewVue is a regional nonprofit that specializes in redeveloping properties into housing.

“Given NewVue’s track record of taking on the most challenging projects with great success, I was thrilled when they asked us to partner with them to create affordable housing (in a property) that is such an important part of Leominster’s history,” Mr. Mazzarella said.

In 2000, the city sold the school to a private developer, but after multiple unsuccessful attempts to redevelop it, NewVue Communities stepped in, officials said, and acquired the building in 2016.

NewVue Communities Vice President Bill J. Brassard, who attended Carter from 1979 to 1981, said he was happy to see the school restored.

When renovations are completed in 2019, the building will have 14 one-bedroom apartments, and 21 two-bedroom and four three-bedroom units. It will also have tenant storage, an exercise room, community space and parking. The exterior of the building and the existing boiler will be historically restored, officials said. The goal is for the building to be certified by Enterprise Green Communities and placed on the National Register of Historic Places.

Janelle Chan, undersecretary for housing and community development for the state’s Executive Office of Housing and Economic Development, said her office was glad the building will benefit future generations and become an asset for Leominster.

Ms. Chan said it is “pretty cool” that people who attended the school want to come back to live there and that children will be back in the hallways. Her office, she said, is proud to support the project.

The $17.4 million project is using historic and low-income housing tax credits, she said, along with state and local subsidies and private loans to rehabilitate the building that is in significant disrepair. Four units will be reserved for formerly homeless households, she said, who will have supportive services provided by the Massachusetts Opportunity Council. All units will be available to tenants at or below 60 percent of the average median income, and 16 units are reserved for tenants at or below 30 percent.

Marc Dohan, executive director of NewVue Communities, said the development team also includes city officials, Davis Square Architects, Hutter Construction and Wingate Companies, who have been working on bringing the project to fruition over the past five years.

Project partners and funders include the city of Leominster, Mr. Mazzarella, the Fitchburg-Leominster HOME Consortium, the Department of Housing and Community Development, Massachusetts Housing Investment Corporation, Avidia Bank, the Massachusetts Historical Commission, the Massachusetts Affordable Housing Trust Fund, the National Park Service, NeighborWorks America, the Community Economic Development Assistance Corporation, the Massachusetts Housing Partnership and the TD Charitable Foundation.

SourceTelegram

Governor Baker Signs $1.8 Billion Affordable Housing Bill to Increase Housing Production, Preserve Housing Affordability

BOSTON — Today, Governor Charlie Baker signed An Act Financing the Production and Preservation of Housing for Low and Moderate Income Residents (H.4536), to ensure long-term support for the Baker-Polito Administration’s comprehensive efforts to increase the production of affordable housing, diversify the state’s housing portfolio, modernize public housing, preserve the affordability of existing housing and invest in new, innovative solutions to address Massachusetts’ rising demand for housing.

“This bill will help expand our administration’s commitment to ensuring residents across the Commonwealth have more access to quality, safe and affordable housing and economic development opportunities,” said Governor Charlie Baker.“Municipalities, developers, and local housing authorities will be supported by a toolbox of flexible resources to create more affordable options and explore new avenues to meet a growing demand. We thank our partners in the Legislature for working with us to pass this legislation and look forward to our continued collaboration on the administration’s Housing Choice Bill to create even more affordable housing options.”

Today’s legislation authorizes $1.8 billion in new capital spending for the production and preservation of affordable housing for low- to moderate-income households, supportive housing and housing serving vulnerable populations. Additionally, the legislation authorizes $650 million for public housing modernization and redevelopment, as well as $45 million for capital improvements at Early Education and Care facilities.

“Our administration continues to seek collaborative partnerships with communities to increase affordable and market-rate housing production across the Commonwealth, through this bill, our pending Housing Choice Initiative, affordable housing awards, the Workforce Housing Initiative and the Housing Development Incentive Program,” said Lt. Governor Karyn Polito. “The housing bond bill builds on these efforts, and we are proud to have worked collaboratively with our dedicated partners in the Legislature to ensure continued funding for critical housing programs.”

The administration’s first three capital budgets supported the creation or preservation of approximately 7,500 affordable housing units, provided $17.8 million to four public housing developments for comprehensive modernization of housing for seniors and individuals with disabilities and allowed the Department of Housing and Community Development (DHCH) to award $150 million for deferred maintenance projects to more than 45,000 units of extremely low-income state public housing across 234 communities.

“Massachusetts’ growing economy has increased pressure on our housing market, creating challenges for families, communities, and employers’ ability to attract and retain talent,” said Housing and Economic Development Secretary Jay Ash. “This housing bond bill provides tools to increase housing production, including extending the State Low-Income Housing Tax Credit and the Housing Development Incentive Program. These programs support the diverse needs for housing development, which together will help us achieve our goal of stronger, more inclusive Massachusetts economy.”

The bill signing took place in Boston’s Brighton neighborhood at the Harry and Jeanette Weinberg House, operated by Jewish Community Housing for the Elderly.

“Our goal is to ensure Massachusetts families and residents, despite their income, have access to safe, quality housing they can afford,” said Housing and Community Development Undersecretary Janelle Chan. “Housing, in particular housing affordable to the spectrum of households, drives economic development, supports vibrant and walkable downtowns, promotes neighborhood stability, and enables families and residents to thrive.”

“The Housing Bond Bill will continue to give the Commonwealth the tools it needs to continue confronting its housing challenges and produce and preserve the housing we need in a growing economy,” said MassHousing Executive Director Chrystal Kornegay. “The legislation will also allow MassHousing to increase the number of the Commonwealth’s residents who can have access to stable, quality housing. We thank the Legislature for their important leadership on this issue.”

“Preserving and producing affordable housing is central to sustaining the Commonwealth’s economic prosperity,” said Senator Boncore, Senate Chair Joint Committee on Housing. “This bond bill makes thoughtful and innovative investments that will serve as tools for municipalities and developers in the modernization and production of our state’s housing stock.”

“We are all well aware of the housing crisis in Massachusetts” said Representative Kevin G. Honan, chairman of the Joint Committee on Housing. “This Housing Bond Bill is a tangible commitment to affordable housing. The provisions of this bill are the tried and true affordable housing tools that are at our disposal. Through this bill, we will recommit ourselves to housing the elderly, disabled and homeless.”

“Today is a great day for the Commonwealth. This bond bill will allow us to continue to make important investments in housing for years to come,” said Assistant Minority Leader Bradley Hill. “I am proud to have been a part of passing this legislation and am thankful to the Governor and Lt. Governor for their leadership.”

“The housing bond bill expands opportunities for children, seniors, people with disabilities, and families at risk of homelessness to find safe, healthy, and affordable homes,” said Rachel Heller, chief executive officer of Citizens’ Housing and Planning Association. “This legislation is the result of strong partnerships among advocates, the Legislature, and the Administration who worked together to pass the bill. As one of the first bond bills filed and passed this session, the Housing Bond Bill demonstrates that creating and preserving more affordable housing is a top priority in the Commonwealth.”

“Today’s signing of the $1.8 billion Housing Bond Bill reflects the collective determination of the Baker-Polito Administration, the Legislature and housing advocates to address the need for affordable housing in Massachusetts,” said Clark Ziegler, executive director of the Massachusetts Housing Partnership. “The combination of a strong state economy, high housing demand and low production has created one of the largest affordability gaps in the U.S. More than 240,000 low-income individuals and families in Massachusetts now pay more than half of their income on rent. Private housing production alone will not solve that problem. The programs authorized in this bill are one of the few ways we can close this gap. Congratulations to all those who worked so hard to address the Commonwealth’s housing needs.”

“It is an incredible honor for JCHE to host this historic bill signing,” said Amy Schectman, president and chief executive officer of Jewish Community Housing for the Elderly. “Prior bond bill funds have allowed us to build our award-winning supportive, affordable housing and these new funds will be vital to creating additional opportunities for older adults to age in community. Kudos to Governor Baker and Chairmen Honan and Boncore for their brilliant leadership on this life-or-death issue.”

The housing bond bill includes:

State Low-Income Housing Tax Credit: Extends the state’s ability to commit $20 million per year in tax credits to affordable housing projects until 2025 and authorizes an additional $5 million per year in tax credits specifically to support preservation of existing affordable housing. Current law would cut the size of this tax credit to $10 million on January 1, 2020.
Housing Development Incentive Program: Extends the state’s ability to commit $10 million per year in tax credits to market-rate housing projects in Gateway Cities until 2024. Current law would cut the size of this tax credit in half, to $5 million, on January 1, 2019.
Accessory Dwelling Unit Construction and Landlord Modifications: Authorizes the use of home modification funding to construct accessory dwelling units for elders and individuals with disabilities and also authorizes up to 10% of the funds to be used to support landlord expenditures to modify units for tenants with disabilities, implementing recommendations of the administration’s Interagency Council on Housing and Homelessness.
MassHousing Services: Expands MassHousing’s authorizing language, to allow the quasi-public agency to provide contract administration, loan servicing, and other services to other states’ housing finance agencies.
Early Education and Out-of-School Time (EEOST) Capital Fund Facilities Improvement Grant Program: Provides funding to non-profit child care programs licensed by the Department of Early Education and Care to renovate, acquire, or construct high-quality child care program facilities that serve low-income families and communities, fostering high quality child care environments that support positive outcomes for children.

The Baker-Polito Administration is committed to meeting Massachusetts’ housing challenge through key investments, new initiatives and program reforms. With the addition of the FY19 capital plan, the Administration will have dedicated $884 million to housing from FY16 to FY19, an increase of $100 million over the previous four years’ capital plans.

In December 2017, the administration announced the Housing Choice Initiative, a comprehensive proposal to create 135,000 new housing units by 2025. The initiative, which is currently pending before the Legislature, includes a new set of incentives and rewards for municipalities committed to sustainable housing growth in their communities. The Housing Choice Initiative is a multi-pronged effort that includes a program to designate Housing Choice municipalities and new technical assistance opportunities through MassHousing, in addition to proposed legislative changes that will help deliver smart, effective zoning at the local level.

Additionally, the highly effective MassWorks Infrastructure Program continues to be a key catalyst for housing production, supporting the creation of more than 3,000 housing units. The Open for Business Initiative will drive the production of more than 2,200 units of housing on state land. MassHousing’s $100 million Workforce Housing Initiative has advanced the development of 2,309 housing units across a range of incomes, including 616 workforce housing units. And, the administration reformed the Housing Development Incentive Program, which is on track to facilitate more than 900 new units in Gateway Cities.

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SourceOffice of the Governor

Ludlow Mill Redeveloped As 75-Unit Mixed-Income Complex

A $19.3 million redevelopment of a 110-year-old historic mill in Ludlow has generated 75 new units of mixed-income senior housing that are already 100 percent leased.

The Residences at Mill 10 contains 63 one-bedroom and 12 two-bedroom apartments for residents ages 55 and older. The complex includes 51 units restricted to households with incomes at or below 60 percent of the area median income (AMI) and 15 set aside for households at or below 30 percent AMI.

Boston-based WinnDevelopment led the project at the 108,163-square-foot building, which is listed on the National Historic Register.

“People began asking to be put on the waiting list for apartments in Mill 10 almost as soon as we began construction, so there is no doubt that the desire for quality housing for seniors in this region is strong,” Larry Curtis, president and managing partner of WinnDevelopment, said in a statement.

The 170-acre former mill complex, formerly the home of the Ludlow Manufacturing and Sales Co., includes more than 60 buildings once used to manufacture rope and twine.

Financing for the project included state and and federal low-income housing tax credits; funding from the housing stabilization fund and HOME fund of the Massachusetts Executive Office of Housing and Community Development; state and federal historic tax credits; tax credit equity from Bank of America; a loan from the Boston Community Loan Fund; money from the Affordable Housing Trust Fund managed by MassHousing; a loan from the town of Ludlow; Facilities Consolidation Fund proceeds from the Community Economic Development Assistance Corporation; a first mortgage from Massachusetts Housing Partnership; project-based subsidies from the U.S. Department of Housing & Urban Development (HUD); and owner equity in the form of a deferred developer fee.

BofA provided construction financing. Quincy-based Dellbrook Construction served as general contractor and The Architectural Team of Chelsea was the architect.

WinnDevelopment also has secured the rights to develop housing at Mill 8, known as the Clock Tower building.

The property is owned by nonprofit Westmass Area Development Corp.

Ludlow Mill Redeveloped As 75-Unit Mixed-Income Complex

SourceBanker & Tradesman