BOSTON – MassHousing has closed on $12.4 million in affordable housing financing to St. Mary’s Plaza, Inc., for the refinancing, renovation, and preservation of the 99-unit St. Mary’s Plaza community in Lynn. As a result of the transaction, St. Mary’s Plaza, Inc. will extend affordability protections for senior citizens and residents with disabilities for at least 25 years.
The transaction will involve approximately $1.4 million in property improvements including new roofing, kitchen upgrades in 79 units, new appliances, sewer and water line repairs and snow guard replacement.
“MassHousing is pleased that this transaction will not only extend affordability for the residents at St. Mary’s Plaza, but also enable substantial property renovations and upgrades for the well-being and comfort of the residents,” said MassHousing Executive Director Chrystal Kornegay.
Edward T. Calnan, President of the Board of Directors at St. Mary’s Plaza Inc., said, “We have always strived to keep our buildings in great shape. Now at 42 years old, we will be able to make more substantial improvements to them because of this loan. Thanks to our board members, Maloney Properties and the financial entities involved for making this happen. Importantly, we also get to extend the affordability to the residents of our housing community for another 25 years. This is good news, not only for us but for the city of Lynn which is facing the challenge of finding ways to provide and maintain affordable housing for its residents.”
As part of the transaction, St. Mary’s Plaza, Inc., has executed a new 20-year HUD Section 8 Housing Assistance Payment contract for 98 of the 99 apartments at St. Mary’s Plaza. The new contract will include five years remaining on the previous contract, for an overall extension of affordability of 25 years. There is an additional unit on the property for management staff.
St. Mary’s Plaza was refinanced 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. MassHousing has surpassed $2 billion in cumulative MAP lending and the Agency has built the largest MAP lending program of any state housing finance agency in the nation.
The combination of FHA insurance and a Ginnie Mae guarantee enables borrowers to access taxable mortgage financing with lower interest rates, while preserving and extending affordability for hundreds of low-income individuals, senior citizens, and families. MassHousing provided St. Mary’s Plaza, Inc. with a $12.4 million, 35-year permanent loan.
“Rockport Mortgage is pleased to once again work with Maloney Properties and MassHousing in preserving the affordability of St. Mary’s Plaza,” said Dan Lyons, President of Rockport Mortgage. “The property will continue to serve as valuable affordable housing stock for the community of Lynn for many years to come.”
St. Mary’s Plaza was created in 1981 with the conversion of a three-story school building into housing and the construction of a seven-story brick apartment building that are connected with an enclosed walkway. There are 94 one-bedroom apartments and five two-bedroom apartments.
The property manager is Maloney Properties.
MassHousing has financed 26 rental housing communities in Lynn involving 4,039 housing units, and an original loan amount of $280.4 million. The Agency has also provided $439.5 million in financing to 2,982 Lynn homebuyers or homeowners.