MassHousing has closed on $9.3 million in loans to preserve and update affordable housing units in Dorchester.

The Lionhead Apartments are being acquired and renovated by the Abrams Development Co. As a condition of the financing, the owner has executed a 20-year extension to the Section 8 Housing Assistance Payment (HAP) contract, extending the property’s affordability for 30 years as a condition of the use of Low Income Housing Tax Credits which generated nearly $6 million in equity for the acquisition and renovation of the property.

"The Lionhead Apartments have been a good source of affordable housing for the residents who live there and they will continue to be with these loan closings," MassHousing Executive Director Thomas R. Gleason said in a statement. "The property is also in need of some renovations and the owner will be able to do that as well."

The Lionhead Apartments include 22 one-bedroom apartments and 49 two-bedroom apartments. Planned improvements include repointing the masonry, replacing the roof membranes and skylights and making HVAC repairs and energy improvements. There will also be asbestos abatement and upgrades to bring common areas into compliance with current accessibility standards.

The Lionhead Apartments were converted to housing in 1971 with MassHousing financing. Located in two six-story masonry buildings at 713 Dudley St. and 3 Monadnock St. in Dorchester, they were built in the late 19th Century as apartment hotels.

MassHousing provided a $7.1 million construction and permanent loan and a $2.2 million bridge loan.

"Fully amortizing the original MassHousing first mortgage was an exciting milestone, and we are pleased to continue our relationship with the agency for another 40 years," Martha Abrams-Bell, a principal of The Abrams Development Co. said in a statement. "We enjoyed a productive working relationship with MassHousing throughout the development process and the staff did a great job of meeting our joint closing deadline."