Image courtesy of MassHousing

A financing package provided by federal, state and local sources will preserve 45 units of affordable housing and renovate a Springfield property.

The financing will extend the affordability restrictions for the Van der Hayden Apartments for 20 years, while updating building systems and the exterior of the 109-year-old building in Mason Square.

The property owner, Van Der Heyden Apartments LP, plans $9 million in capital improvements. The Section 8 Housing Assistance Payment contract has been extended for 20 years, with 18 apartments reserved for households earning up to 30 percent of area median income, and 27 apartments set aside for households earning up to 50 percent of AMI.

MassHousing provided a $9.9 million construction loan and $3.4 million in construction and permanent financing.

Other financing sources include $8.5 million in equity financing from state and federal low-income house tax credits, $4.3 million in historic tax credit equity financing, $1 million in direct support from the Massachusetts Executive Office of Housing and Liveable Communities, $1 million from the Affordable Housing Trust Fund and $50,000 from the city of Springfield. The tax credit syndicator and investor is the Massachusetts Housing Investment Corporation (MHIC).

The project is designed by Studio One Inc. and will be completed by N.L. Construction Inc.