A 36-unit development in Roxbury has landed a permanent loan to help preserve its affordability.

The Massachusetts Housing Partnership provided the $2 million permanent loan for the Brook Avenue Apartments, a scattered site development of 36 three-bedroom townhouse apartments in Roxbury.

The loan completes a $10.9 million acquisition and rehabilitation of the property by Wellesley-based EA Fish Development (EAFD) from the original developer, Veterans Benefits Clearinghouse Development Corp. of Boston.

“EAFD is thrilled to have MHP as our primary financial partner,” EAFD Managing Director Matt Mittelstadt said in a statement. “Its collaborative approach to projects is perfectly suited to our vision for Brook Avenue.”

Brook Avenue consists of 17 town-house style homes and a community building spread out over six streets just south of Nubian Square. It was built in 1997 as part of the Dudley Street Neighborhood Initiative (DSNI), a community-driven revitalization effort that used the power of eminent domain to purchase and redevelop 1,300 abandoned parcels that had been ravaged by disinvestment, fires and illegal dumping. DSNI resulted in 225 new affordable homes, a park, gardens and other amenities across more than 30 acres in Roxbury and North Dorchester.

MHP’s $2 million loan enabled EAFD to secure low-cost financing with a 17-year term and 30-year amortization. This was done through a direct bond placement in which tax-exempt bonds issued by MassDevelopment were purchased by Citizens Bank for use during the construction period.  This short-term bond was paid off – using the proceeds from a taxable MHP permanent loan – upon completion of rehabilitation, which included replacement of major utility systems, windows and decks.

Additional financing was provided though federal 4 percent low-income housing tax credits, state low-income housing tax credits, other state funding, and funding from the city of Boston.

“Brook Avenue symbolizes the revitalization of Dudley Street neighborhood and we’re proud to support Matt Mittlestadt to ensure that these affordable homes serve neighborhood residents for years to come,” Clark Ziegler, MHP’s executive director, said in a statement.

Roxbury Affordable Project Lands Permanent Financing

by Banker & Tradesman time to read: 1 min
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