Financing from MassHousing will support redevelopment of a vacant former office building in downtown Worcester into a 55 units of mixed-income housing and ground-floor retail space.
MassHousing has closed on a total of $5.1 million in affordable housing financing to support the redevelopment of Worcester’s Central Building by the Central Building Development Group.
“The Central Building has been a significant structure in downtown Worcester since it was built in 1926,” Central Building Development Group Managing Member Kathryn Krock said in a statement. “We are thrilled to restore and modernize this building into a mixed-use development that will contribute to downtown Worcester’s ‘18-hour day’ and downtown revitalization.”
MassHousing is supporting the redevelopment of the Central Building with a $3.7 million permanent loan and $1.4 million in workforce housing funding from the agency’s $100 Million Workforce Housing Initiative. The project also received approximately $12 million through an allocation of federal and state low-income housing tax credits, more than $3 million in direct affordable housing funding from the Massachusetts Department of Housing and Community Development, $1.2 million in HOME funds from the city of Worcester, and approximately $5.3 million through allocations of federal and state historic tax credits.
“MassHousing’s partnership with the Baker-Polito Administration and city officials will advance the revitalization of downtown Worcester by delivering the new residents and retail uses needed to reactivate this corner of Main Street,” MassHousing Executive Director Chrystal Kornegay said in a statement. “MassHousing’s Workforce Housing Initiative is a powerful and flexible tool for opening new economic opportunities and accelerating downtown revitalization efforts. We congratulate the Krock family and the city of Worcester for their dedication to this transformational housing development.”
The building will contain one studio unit, 17 one-bedroom apartments, 34 two-bedroom apartments and three three-bedroom apartments.
Eight of the 55 new apartments will be for lower-income households earning at or below 50 percent of the area median income (AMI), and will be subsidized by Section 8 Housing Assistance Payment vouchers. An additional 28 units will be affordable for households earning at or below 60 percent of AMI. Fourteen apartments will be workforce housing units for moderate-income households earning at or below 70 percent of AMI, and five units will be rented at market rates. The AMI for Worcester is $85,800 for a family of four.
The Central Building, located at 332 Main St., was built in 1925 and operated as an office building for many years. Prior to the current redevelopment effort, the property had been vacant for several years, and was considered for demolition. The commitment of affordable housing, workforce housing, and historic resources enabled the property’s preservation and reuse.
