BOSTON– MassHousing has closed on $16.4 million in affordable housing financing to South Norfolk Elderly Housing Services, Inc. for the preservation and improvement of the 99-unit Stony Brook Court in Sharon. As part of the transaction, affordability protections for senior citizens living at the property will be extended for at least 39 years.
“Stony Brook Court is an important source of affordable rental housing for senior citizens in Sharon,” said MassHousing Executive Director Chrystal Kornegay. “MassHousing is pleased that not only will that affordability be extended for almost four decades, but that the property will undergo significant renovations so that its residents will enjoy quality and safe homes long into the future.”
As part of the transaction, South Norfolk Elderly Housing Services has executed a new 20-year federal Section 8 Housing Assistance Payment contract for 98 one- bedroom apartments at the two-story Stony Brook, which will include the 19 years remaining on the previous contract, for an overall extension of affordability of 39 years. There is an additional unit on the property for management staff.
Additionally, South Norfolk Elderly Housing Services will undertake approximately $3.4 million in property improvements, including repair and repainting of siding, replacement of windows and air-conditioning units, fire alarm and sprinkler system upgrades, the installation of a new emergency generator, and carpet replacement in apartments and common areas. Twenty apartments will be renovated, and five apartments will receive accessibility upgrades.
Stony Brook Court 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 is providing South Norfolk Elderly Housing Services with an $18.5 million, 35-year permanent loan.
“We’re very pleased to work with South Norfolk Elderly Housing Services, Peabody Properties, and MassHousing in refinancing and extending the affordability of Stony Brook Court,” noted Dan Lyons, President of Rockport Mortgage. “The location of property, close to both the Sharon Community Center and the Sharon Council on Aging, as well as other local amenities, is a real benefit for the senior citizens who call Stony Brook Court home.”
The property is managed by Peabody Properties.