New Bedford, MA – MassHousing has closed on $16.4 million in affordable housing financing to Alinea Capital Partners for the development of 10 @ 8th, which will include 52 new rental homes in downtown New Bedford.
The new apartments will be constructed in a 5-story building on a site containing a vacant former Registry of Motor Vehicles building and a parking lot. The vacant building will be demolished, and the new building will feature first-floor commercial space with the 52 rental units on the upper floors. The new housing will be centrally located near regional public transportation, New Bedford City Hall, the University of Massachusetts at Dartmouth’s College of Visual and Performing Arts, the Zeiterion Theatre, the Whaling Museum and a collection of art galleries, restaurants, and other urban amenities.
MassHousing is providing Alinea Capital Partners with $2.2 million in permanent financing and $14.2 million in tax credit equity bridge financing.
Other financing sources include approximately $17.4 million in tax credit equity from an allocation of state and federal Low Income Housing Tax Credits by the Massachusetts Executive Office of Housing and Livable Communities (HLC); $8.92 million in direct support from HLC, including $6.9 million in American Rescue Plan Act (ARPA) financing; $15.6 million in construction financing from JPMorgan Chase & Company; $3 million in New Bedford ARPA and CGBG financing; $1 million through the Affordable Housing Trust Fund, which MassHousing manages on behalf of HLC; $54,889 in Solar Tax Credit financing; and $34,676 in Mass Save financing. The Massachusetts Housing Investment Corporation will be the tax credit syndicator and investor.
Of the 52 new apartments, eight will be restricted to households earning up to 30% of the Area Median Income (AMI) and supported by a federal Section 8 Housing Assistance Payment contract, 36 apartments will be restricted to households earning up to 60% of AMI, and eight apartments will be for households earning up to 80% of AMI. There will be 12 one-bedroom apartments, 36 two-bedroom apartments, and four three-bedroom apartments.
The contractor will be D.F. Pray, the architect is DHK Architects, and the management agent will be the WinnCompanies. Construction is expected to be completed by June 2025.