BOSTON – MassHousing has closed on a total of $38.5 million in affordable housing financing to Beacon Communities LLC, to preserve affordability at two affordable housing communities in Brockton. The MassHousing financing will also allow Beacon Communities to complete approximately $10.7 million in combined property improvements.
MassHousing is providing Beacon Communities with $23.3 million in financing for the 168-unit Pine Commons, where approximately $6.6 million in property improvements are planned, and $15.2 million in financing for 120-unit Pine Gardens, where approximately $4.1 million in property improvements are planned.
“Pine Commons and Pine Gardens provide quality affordable housing and economic opportunity to dozens of families in Brockton,” said MassHousing Executive Director Chrystal Kornegay. “Beacon Communities has ensured the long-term affordability at these two housing communities through federal housing subsidies and will now embark on significant property improvements for the residents.”
Mary Corthell, Beacon Communities’ Executive Vice President of Asset Management, noted, “We are very proud to partner with MassHousing on this refinancing. The planned renovations at Pine Commons and Gardens will enhance the quality of life for our residents and aligns with our mission of maintaining outstanding communities.”
Pine Commons and Pine Gardens were 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 $1.75 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 Beacon Communities a $23.3 million, 35-year permanent loan for Pine Commons and a $15.2 million permanent loan for Pine Gardens.
“Rockport Mortgage is pleased to once again work with the principals of Beacon Communities and MassHousing in preserving the affordability of Pine Gardens and Pine Commons,” said Dan Lyons, President of Rockport Mortgage. “The properties will continue to serve as valuable affordable housing stock for the community of Brockton for many years to come.”
Located on Pine Grove Drive in Brockton, Pine Commons consists of 138 two-bedroom apartments and 30 three-bedroom apartments in 19 three-story buildings. Of the 168 apartments, 148 are subsidized by a federal Section 8 Housing Assistance Payment contract and 20 apartments are rented at unrestricted rates.
Pine Gardens consists of 114 two-bedroom apartments and six three-bedroom apartments in 13 three-story buildings. Of the 120 apartments,101 are subsidized by a Section 8 HAP contract and 19 apartments are rented at unrestricted rates. The Section 8 HAP contracts at Pine Commons and Pine Gardens are in place until 2053, ensuring affordability for at least 30 years.
Pine Commons and Pine Gardens are part of an overall, housing community development called Pine Estates. Pine Estates also includes two-story maintenance and daycare buildings, and a single-story clubhouse with a community room, management office, resident service office, and a computer center. The property also has an outdoor swimming pool, playground, and basketball court.
Property improvements planned for Pine Gardens and Pine Commons are apartment refurbishments, new security camera system, lighting, window, storm door, roofing, siding, playground and gutter replacements, and accessibility, landscaping, paving, sidewalk, and parking improvements. Additionally, 15 apartments will be converted to accessible units which will comply with ADA standards.
MassHousing has financed 15 rental housing communities in Brockton involving 2,392 total units and $91.42 million in financing. The Agency has provided 1,989 home mortgage loans to Brockton homebuyers or homeowners totaling $282.9 million in financing.