Salem, MA – MassDevelopment has issued a $55 million tax-exempt bond on behalf of Salem Heights II Preservation Associates Limited Partnership, an affiliate of Preservation of Affordable Housing, Inc. (POAH), which will use bond proceeds to buy, renovate, and equip the 281-unit multifamily rental housing facility Salem Heights, located at 12 Pope St.
Planned renovations to Salem Heights include an entirely new building envelope, which is removal of the building’s brick and exterior sheathing, replacement with a structural insulated metal panel, new windows, and new roofs with six more inches of insulation; the conversion of 15 units to ADA-compliant, barrier-free units; extensive duct work repair; improved ventilation and a new cooling system; plumbing upgrades; common area improvements; and a new playground. The bond was sold through a public offering underwritten by RBC Capital.
The property includes 274 housing units that are rented to households earning no more than 60% of the area median income ($80,520 for a four-person household) and seven market-rate units that are rented to households earning no more than 120% of the area median income ($161,040 for a four-person household).
Salem Heights is comprised of two connected nine- and 10-story high-rise buildings containing a total of 95 one-bedroom and 186 two-bedroom apartments. The complex was at risk of being converted to market-rate housing until POAH bought the facility in 2003, assuring affordability for decades to come. POAH completed a modest rehab of around $11,000 per unit in 2003 and POAH Communities has managed the property since 2005.
