Image courtesy of Embarc
The state’s own fund for kick-starting mixed-income housing developments has been doling out takeout financing to developments across Massachusetts for over a year.
With two funding announcements in the last two months, Boston’s own, larger fund is finally getting in on the game two years after it was first announced.
Gov. Maura Healey’s office announced Tuesday that the state’s $50 million Momentum Fund and the $110 million Boston Housing Accelerator Fund together pledged $10.5 million in takeout equity financing to a 110-unit, mixed-income development in Roxbury’s Nubian Square.
It’s the first time the Momentum Fund and the Boston Housing Accelerator are investing together, and the second project the latter has invested in after a $50 million contribution towards the second building in Leggat McCall Properties’ revamp of a Charlestown public housing development.
“This project will prevent displacement and add more housing for older adults, working families and longtime residents of Nubian Square,” Boston Mayor Michelle Wu said in a statement. “As families face increasing pressure on household budgets and growing housing costs, I’m excited to join efforts with Governor Maura Healey and the state in this innovative partnership to strengthen our communities by building more housing.”
The MassHousing-administered Momentum Fund had previously announced investments in three projects in Milton, Grafton and Allston, respectively, although the latter ultimately decided to use a different financing plan. Counting Tuesday’s announcement, the fund has backed developments totaling 453 of the 1,000 new homes state officials targeted.
A joint venture of SV+Partners and Trax Development received Boston Planning & Development Agency board approval in October 2024 for the project at 10 Malcom X Blvd. The 1.7-acre site includes two additional residential buildings, the 6-story apartment building at 20 Malcom X Blvd. that the state and city money will help finance. The remaining building at 70 Dudley St. includes 12 home ownership units. Embarc is the project architect.
“Our Administration is committed to building more housing, lowering costs and creating more opportunities for people across our state, and that requires new partnerships and innovative financing tools, Healey said in a statement. “We created the Momentum Fund To help move housing projects into construction faster. By bringing together state, local and private investment, this partnership will help transform an underutilized site into new housing, create jobs and support the future of Nubian Square. This is exactly the kind of collaboration we need to help unlock more housing production and create more opportunities for people across our state.”
The public dollars won’t be invested until after SV+Partners and Trax complete construction – financing for which hasn’t yet been secured – and land takeout financing for the apartment development, with the intent of de-risking both the construction loan and the permanent loan by creating some margin for error in the building’s financial performance.
“20 Malcolm X presents a unique opportunity to deliver lasting investment, jobs and quality homes to the heart of Nubian Square,” Jacob Vance, principal of SV+Partners, said in a statement. “The takeout financing provided by the MassHousing Momentum Fund and Boston’s Housing Accelerator Fund is integral to the success of the project, and we are proud to be the first to put this state-city partnership to work. We are grateful to Governor Healey, Mayor Wu, MassHousing, and our neighbors in Roxbury for the trust they have placed in our team and are looking forward to seeing this vision come to fruition.”
The apartment building financed by Tuesday’s announcement includes 22 affordable rental homes and 88 market-rate apartments, and amenities include a sky deck, fitness center, resident lounge co-working space, game room and public plaza.
The site also includes an existing office building repurposed from a Boys & Girls Club location and is now home to offices for MassHire Boston ABCD’s career center, the Social Security Administration and DCAMM’s Committee for Public Counsel Services, SV+ Partners said.
