Cambridge, MA – MassHousing has closed on $17.6 million in financing to Just-A-Start Corporation for the renovation and preservation of affordability at the Close Building in Cambridge. The financing will allow Just-A-Start to preserve affordability at all 61 apartments at the Close Building for at least 30 years.
Affordability restrictions at the property had expired in 2016, and Just-A-Start’s decision to pursue a preservation transaction will keep the Close Building affordable for the long term. The contractor will be Delphi Construction, Inc. The architect is Davis Square Architects and the management agent is Maloney Properties.
The six-story, brick Close Building was built as a factory in 1910 and converted to housing with MassHousing financing in 1976. There are 6 studios, 49 one-bedroom apartments and 6 two-bedroom apartments. The refinancing will allow Just-A-Start to make extensive property improvements, including exterior masonry repairs, the installation of new windows, plumbing upgrades, unit improvements, and the creation of additional fully-accessible units.
MassHousing provided Just-A-Start with a $9.3 million construction and permanent loan, a $6.5 million tax-exempt bridge loan and a $1.8 million taxable bridge loan. The MassHousing financing generated $10.7 million in Low-Income Housing Tax Credit equity for the project, and an allocation of state historic tax credits generated $2.1 million in equity. The transaction also involved a $7.7 million seller note.
Of the 61 units at the Close Building, 58 are affordable for households earning at or below 60 percent of the Area Median Income (AMI) and 3 units are for households earning at or below 80 percent of AMI. The Area Median Income for Cambridge is $107,800 for a family of four.
