Boston – MassHousing has closed on a total of $87.2 million in affordable housing financing to the non-profit Homeowners Rehab, Inc. (HRI), for the modernization and preservation of affordability at the 300-unit 808 Memorial Drive in Cambridge.
MassHousing provided Homeowners Rehab with a $61.5 million tax-exempt construction and permanent loan, $24.9 million in taxable and tax-exempt tax credit equity bridge financing, and a $787,763 interest reduction payment (IRP) loan.
The project will also use $8.9 million of income during the construction period for development costs. The transaction also involved $36.9 million in equity financing from an allocation of Low-Income Housing Tax Credit tax credits by the Massachusetts Department of Housing and Community Development (DHCD). The tax credits were syndicated by RBC.
Located at the intersection of Memorial Drive and River Street, 89 apartments are contained in the 10-story building at 808 Memorial Drive, and 211 apartments are contained in the 19-story building at 810-812 Memorial Drive. The properties also have office and commercial space and 808 Memorial Drive has a first-floor daycare center.
The MassHousing financing will allow HRI to extend affordability protections at the property by at least 15 years, and to invest substantially in property renovations. Of the 300 apartments, 212 will be supported for 15 years by a federal Section 8 Housing Assistance Payment contract for lower-income residents administered by the Cambridge Housing Authority. The additional 88 apartments at the property are rented at market rates.
Other than the basic improvements planned, the building exterior will receive new cladding, which will improve energy efficiency. Construction is expected to be completed by the end of 2022.
The general contractor is NEI General Contracting. The architect is Bruner Cott and the management agent is Wingate Management.