BOSTON – MassHousing has closed on $28.8 million in affordable housing financing to Council of Elders Housing Corporation for the refinancing and extension of affordability at the 145-unit Council Tower in Roxbury.
As a result of the transaction, the Council Tower property, which houses lower-income senior citizens, will have affordability protections extended for 29 years. In addition to extending affordability, the 17-story housing community in Roxbury will undergo approximately $2 million in property improvements.
“MassHousing is pleased that the seniors living at Council Tower will have their affordable rents extended for the long term,” said MassHousing Executive Director Chrystal Kornegay. “MassHousing partners with mission-based affordable housing developers, for the benefit of lower-income households, and this transaction ensures that Council Tower will continue to serve Boston residents for decades to come.”
“Council of Elders Housing Corporation’s ongoing mission is to serve this community and preserving the affordability for low-income seniors is essential,” said Victoria Williams, Council of Elders Housing Corporation Board Chair. “Critical reinvestment in the building will not only impact the current residents, but it will also have a long-lasting impact on the Council of Elders Housing Corporation’s ability to create more affordable housing and deliver services to elders in the Roxbury community.”
Council Tower 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 $1 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 Council of Elders Housing Corporation with a $28.8 million, 35-year permanent loan.
“Council Tower’s convenient location in the Egleston Square area of Roxbury, close to transportation, healthcare, shopping and restaurants, is a real benefit to the senior tenants,” noted Dan Lyons, Managing Partner and President of Rockport Mortgage. “We’re very pleased to work with Council of Elders Housing, the property management company, Rogerson Communities, and MassHousing to ensure that Council Tower remains a valuable housing asset for members of our senior community.”
Council Tower, which is managed by Rogerson Communities, has 28 studio apartments and 117 one-bedroom apartments. All but one of the 145 apartments are subsidized with a federal Section 8 Housing Assistance Payment contract. The property owner will extend the HAP contract for 20 years when the current contract expires in nine years. One unit is occupied by a property manager.
Among the property enhancements planned are a new fire alarm panel, replacement of the emergency call system, building façade repairs and general site improvements.