Photo courtesy of MassHousing

A 300-unit mixed-income housing development on Memorial Drive in Cambridge will be renovated and see its affordability preserved thanks to a nearly $88 million loan.

The tower complex at 808 Memorial Drive is owned by Homeowners Rehab Inc., a nonprofit affordable housing provider. The $87.2 million loan from MassHousing will extend affordability protections on 212 of the property’s units by 15 years. The remaining 88 units are market-rate rentals.

Improvements planned for the property include new windows, new balcony doors, new kitchens and bathrooms in some units, landscaping and paving improvements and fire alarm upgrades. The building exterior will receive new cladding, which will improve energy efficiency. Construction is expected to be completed by the end of 2022.

The general contractor is NEI General Contracting. The architect is Bruner Cott and the management agent is Wingate Management.

“The homes at 808 Memorial Drive were originally built to advance a vision of Cambridge as inclusive and welcoming to residents of all means,” MassHousing Executive Director Chrystal Kornegay said in a statement. “Through this transaction, Homeowners Rehab will ensure that vision remains true, and that 808 Memorial Drive continues to serve as a vibrant, safe, modern affordable housing resource, well into the future. MassHousing is thrilled to partner with Homeowners Rehab and the City of Cambridge on this important transaction.”

MassHousing provided Homeowners Rehab with a $61.5 million tax-exempt construction and permanent loan, $24.9 million in taxable and tax-exempt tax credit equity bridge financing, and a $787,763 interest reduction payment loan. The project will also use $8.9 million of income during the construction period for development costs.

The transaction also involved $36.9 million in equity financing from an allocation of Low-Income Housing Tax Credit tax credits by the Massachusetts Department of Housing and Community Development. The tax credits were syndicated by RBC.

300-Unit Cambridge Affordable Towers Get $88M Financing

by Banker & Tradesman time to read: 1 min