Boston – MassHousing has provided $14.4 million in affordable housing financing to an affiliate of the Barkan Companies, to extend the affordability of the Fitchburg Green affordable housing community in Fitchburg, and make property improvements to the 159-unit property.
As a result of the MassHousing financing, affordability protections for lower-income senior citizens and families living at Fitchburg Green will be extended for at least 35 years.
The Barkan Companies refinanced Fitchburg Green through MassHousing’s Multifamily Accelerated Processing (MAP)/Ginnie Mae Joint Venture Initiative with lender partner Rockport Mortgage Corporation. MassHousing offers the MAP/Ginnie Mae loan program to the owners of rental housing through the U.S. Department of Housing and Urban Development (HUD). HUD provides expedited Federal Housing Administration (FHA) insurance approvals through the MAP program.
The combination of FHA insurance and a Ginnie Mae guarantee enables borrowers to access mortgage financing with lower interest rates, while preserving and extending affordability for hundreds of low-income senior citizens and families. The $14.4 million refinancing allowed the Barkan Companies to refinance an existing MassHousing loan, with a 6.8% interest rate into a new 35-year mortgage with a 3.3% interest rate.
Built in 1980, Fitchburg Green provides 143 units of affordable housing for senior citizens in an eight-story building consisting of 130 one-bedroom apartments and 13 two-bedroom apartments. Additionally, three two-story townhomes for families contain 14 two-bedroom apartments and two three-bedroom apartments.
Among the property improvements planned for Fitchburg Green are kitchen and bathroom upgrades, repaving parking areas and walkways, new landscaping, site lighting and signage, common area flooring replacement, as well as in-unit accessibility improvements.