Boston – MassHousing is providing $50 million in affordable housing financing to Related Companies to refinance and renovate the Chestnut Park Apartments in downtown Springfield.
The contractor will be ETC Companies, LLC, the architect is The Architectural Team, and the management agent is Related Management Company.
The MassHousing financing will allow Related to preserve affordability at the 489-unit housing community, while making a significant capital investment in the property. As part of the transaction, Related will create 77 workforce housing units that will be affordable to moderate-income households. The property also includes 19,000sf of commercial space.
MassHousing is supporting the modernization of the Chestnut Park Apartments by providing $45 million in tax-exempt financing through the Agency’s Conduit Loan Program, in partnership with Wells Fargo. Wells Fargo will act as the project’s commercial construction and permanent lender. The MassHousing financing and an allocation of federal and state Low-Income Housing Tax Credits by the Massachusetts Department of Housing and Community Development (DHCD) generated $42.4 million in equity financing for the project.
MassHousing is additionally providing $5 million in workforce housing financing through the Agency’s $100 million Workforce Housing Initiative. The MassHousing workforce housing funds will create a new tier of 77 workforce housing units at Chestnut Park.
Of the 489 apartments at Chestnut Park, 412 will remain affordable to households earning at or below 60 percent of the Area Median Income (AMI), with 241 of those units receiving additional support from a project-based Section 8 rental assistance contract.