Photo courtesy of Beacon Communities

Bonds from MassDevelopment worth $39 million are set to finance major renovations at a 346-unit Springfield apartment complex, and help convert dozens of market-rate units in the building to affordable housing.

The three-building Baystate Place development at 414 Chestnut St. is owned by Beacon Communities and currently contains 261 affordable and 85 market-rate units, according to a financing announcement from MassDevelpoment.

“We are thrilled to preserve and renovate this critical affordable housing asset that has served so many households in Springfield for decades,” Beacon Communities CEO Dara Kovel said in a statement. “We thank MassDevelopment, Citibank, [Massachusetts Housing Investment Corp.], [the state Department of Housing and Community Development], and the city of Springfield for their support and expertise in closing this complex transaction.”

The bonds, which Citibank purchased, will convert 63 market-rate units to affordable units. The project also is the recipient of $27 million in federal Low Income Housing Tax Credits. The affordability mix will be as follows after the renovation:

• 35 units will be rented to families earning up to 30 percent of the Springfield area median income ($25,230 for a four-person household).
• 289 units will be rented to families earning up to 60 percent of the area median income ($50,460 for a four-person household).
• 22 units will be rented at market rate.

Renovations to the complex will include replacing kitchens and bathrooms; installing new flooring, paint and windows; reconfiguring and upgrading common areas; expanding the wellness center; renovating community and fitness rooms; relocating the management office and store; upgrading the courtyard; installing a new handicap ramp; upgrading and replacing building systems, including the elevators; resurfacing parking lots; and completing improvements to roofs, heating and cooling, ventilation, fire safety, plumbing stacks, water and waste lines, intercom and security systems, main breakers, switchgear and unit electrical loan centers.

“The Baker-Polito Administration believes that preserving and expanding affordable housing in Gateway Cities and urban centers is crucial to addressing our Commonwealth’s housing crisis and stimulating long-term economic prosperity,” said Housing and Economic Development Secretary Mike Kennealy, who serves as chair of MassDevelopment’s board of directors, said in a statement. “MassDevelopment’s bond financing is a key tool in bringing developers, municipalities, and financial institutions together to make these projects happen.”