Boston – MassHousing has closed on $5.3 million in financing to MSq Redevelopment LLC, an affiliate of Rees-Larkin Development, for the development of 44 affordable and workforce apartment homes as part of the Moran Square Redevelopment in Fitchburg.
Rees-Larkin’s Moran Square Redevelopment will convert the former Summer Street Fire Station into two apartments, redevelop the former 3-story commercial Harper Building into 14 apartments, and construct a new, 5-story building with 28 apartments between the two structures, with a common corridor and common mechanical systems linking the three buildings. There will be one studio apartment, 14 one-bedroom apartments, 23 two-bedroom apartments, and six three-bedroom apartments. The project will also create 8,200sf of commercial space.
The Moran Square Redevelopment will have five apartments for households earning up to 30% of the Area Median Income (AMI), which will be supported by federal Section 8 housing assistance, 15 apartments for households earning up to 60% of AMI, and 24 workforce housing units for moderate-income households earning up to 80% of AMI.
MassHousing is providing Rees-Larkin with a $2.9 million permanent loan and $2.4 million in financing from the Agency’s Workforce Housing Initiative, for the creation of 24 new workforce housing units. Other financing sources included $10.2 million in equity from the allocation of federal Low Income Housing Tax Credits by the Massachusetts Department of Housing and Development (DHCD), $2 million in direct support from DHCD, $1 million from the Affordable Housing Trust Fund, which MassHousing manages on behalf of DHCD, $1.5 million in historic tax credit equity, and $130,000 in HOME funds from the City of Fitchburg.
Construction is expected to be completed in November 2022. The general contractor will be Keith Construction. The architect is The Architectural Team and the management agent will be Housing Management Resources.