Boston – MassHousing has closed on $38.7 million in affordable housing financing to the nonprofit Inquilinos Boricuas En Accion, Inc., for the rehabilitation and preservation of the West Newton Apartments, a public housing community in Boston’s South End, The project is part of the Boston Housing Authority’s (BHA) ongoing effort to modernize public housing across Boston.
Of the 146 units, 110 will be supported through HUD’s Public Housing Rental Assistance Demonstration program, and the remaining 36 will be supported by a project-based Section 8 Housing Assistance Payment contract, both of which will be administered by the BHA.
IBA plans to undertake $29.5 million in property renovations, including extensive exterior masonry and carpentry work, roofing repairs, installation of new interior and exterior doors, new HVAC systems, plumbing improvements, and unit upgrades.
The contractor will be Bilt-Rite Construction, the architect is Davis Square Architects, and the management agent is Maloney Properties.
MassHousing provided IBA with a $7.7 million construction and permanent loan and a $30.9 million tax-exempt bridge loan. The financing also generated $22.9 million in low-income housing tax credit equity for the project. The tax credits were allocated by the Massachusetts Department of Housing and Community Development with Wells Fargo as the direct investor.
Other project financing includes approximately $11.8 million in federal and state historic tax credit equity, a $24 million seller note, a $3.9 million sponsor contribution, and a $977,000 deferred developer fee.