Franklin Park Apartments
Update
09/20/21
MassHousing Closes on $31.4M for the Refinancing and Extension of Affordability at 219 The Franklin Park Apts
MassHousing has closed on $31.4 million in affordable housing financing to The Community Builders, Inc. (TCB) for the refinancing and extension of affordability at the 219-unit Franklin Park Apartments in Boston.
TCB will extend rental assistance affordability protections for 155 of the 219 units at Franklin Park Apartments by an additional 29 years and will also complete approximately $1.5 million in property improvements at the 15-building housing community, which is located on 12 scattered sites in Dorchester and Roxbury.
"MassHousing is excited to partner with The Community Builders to preserve affordability at the Franklin Park Apartments and position this important affordable housing resource to serve lower-income families well into the future," said MassHousing Executive Director Chrystal Kornegay.
"It is a privilege to extend affordable homes to our residents in Dorchester and Roxbury. We are extremely grateful for our partnership with MassHousing and their innovative refinance program," said Jesse Elton, Director of Finance at The Community Builders. "At TCB we place residents at the center of all we do; we were able to take advantage of the low-interest rate environment to maximize proceeds that we will now be able to invest in Franklin Park Apartments for the benefit of our residents."
"We're very pleased to work with The Community Builders, and to once again partner with MassHousing, to refinance and extend the affordability of this important housing asset within these Dorchester and Roxbury neighborhoods," noted Dan Lyons, Managing Partner and President of Rockport Mortgage. "There remains a very clear need for safe, affordable housing not only within the city of Boston but all across the Commonwealth of Massachusetts. We look forward to continuing our work with MassHousing and other mission-driven nonprofit developers like The Community Builders."
The Franklin Park Apartments was refinanced through MassHousing's Multifamily Accelerated Processing (MAP)/Ginnie Mae Joint Venture Initiative with lender partner Rockport Mortgage Corporation. MassHousing offers the MAP/Ginnie Mae loan program to the owners of rental housing through the U.S. Department of Housing and Urban Development (HUD). HUD provides expedited Federal Housing Administration (FHA) insurance approvals through the MAP program. MassHousing has surpassed $1 billion in cumulative MAP lending and the Agency has built the largest MAP lending program of any state housing finance agency in the nation.
The combination of FHA insurance and a Ginnie Mae guarantee enables borrowers to access taxable mortgage financing with lower interest rates, while preserving and extending affordability for hundreds of low-income individuals, senior citizens and families. MassHousing is providing TCB with a $31.4 million, 35-year permanent loan.
The Franklin Park Apartments are contained in low to mid-rise buildings, and include 95 one-bedroom apartments, 99 two-bedroom apartments, 10 three-bedroom apartments, 5 four-bedroom apartments and 10 five-bedroom apartments.
All the apartments are restricted to households earning at or below 60 percent of the Area Median Income (AMI). Of the 219 apartments, 155 are subsidized with a federal Section 8 Housing Assistance Payment contract. TCB will extend the HAP contract for 20 years when the current contract expires in nine years. One unit is subsidized for a disabled household with Section 811 rental assistance through the Massachusetts Department of Community Development (DHCD). The AMI for Boston is $120,800 for a household of four.
The property was substantially rehabilitated by TCB in 2009, with $25 million in MassHousing financing.
MassHousing has financed 209 rental housing communities in Boston involving 25,376 housing units and a total of $3.9 billion in financing. The Agency has also provided $1.2 billion in mortgage financing to 8,653 Boston homebuyers and homeowners.
