BOSTON – Senior citizens and disabled residents living at the 74-unit Peter Sanborn Place in Reading will have their affordable rents extended for at least 24 years and will see property improvements as a result of $10.2 million in MassHousing affordable housing financing to the non-profit Affordable Housing and Services Collaborative (AHSC) and First Church in Malden Homes, Inc.
The property owners refinanced Peter Sanborn Place through MassHousing’s Multifamily Accelerated Processing (MAP)/Ginnie Mae Joint Venture Initiative with partner lender Rockport Mortgage Corporation. As a condition of the MassHousing financing, the property owners extended a federal Section 8 Housing Assistance Payment Contract on 73 apartments at Peter Sanborn Place 20 years beyond the current contract maturity of 2023, extending affordability through 2043.
“Peter Sanborn Place is an important source of affordable housing for lower-income seniors and residents with disabilities in Reading and now those homes will remain affordable to them for the long term,” said MassHousing Executive Director Chrystal Kornegay. “In addition to their commitment to keeping this housing community affordable, the owners will also complete significant property improvements for the residents.”
“AHSC is proud to have partnered with First Church in Malden Homes, Inc. to work with MassHousing, Rockport Mortgage and Peabody Properties Inc. to financially reposition the property in such a way that will extend the affordability of the property and allow for needed improvements that will improve the quality of life for the residents,” said AHSC President and CEO Michael Mattos.
“It was our pleasure to work on Peter Sanborn Place to preserve this 74-unit elderly housing project in Reading,” said Dan Lyons, President of Rockport Mortgage Corporation. “This transaction will ensure the award-winning property will be maintained well into the future. This marks our 28th transaction through the MassHousing Joint-Venture program, which has successfully preserved over 5,000 affordable housing units across the state of Massachusetts.”
MassHousing’s MAP/Ginnie Mae loan program is offered in partnership with the U.S. Department of Housing and Urban Development (HUD). The MAP/Ginnie Mae financing allows owners of affordable rental housing to access a faster HUD loan review process and lower interest rates.
To date, MassHousing has used lower-cost taxable MAP/Ginnie Mae financing to preserve housing affordability for 6,000 low-income senior citizens and families, without relying on scarce public resources, such as tax-exempt financing and Low-Income Housing Tax Credits.
The refinancing of Peter Sanborn Place will also include property improvements, including accessibility upgrades, parking lot repairs, roof replacement and fence repairs.
Located at 50 Bay State Road in Reading, the 74 apartments are contained in a three-story building built in 1980. The property contains 71 one-bedroom apartments and three studio units. One apartment is occupied by management staff.
Peter Sanborn Place is managed by Peabody Properties.
MassHousing has financed 2 rental communities in Reading involving 187 units of housing and $32.4 million in financing. The Agency has also made 210 home mortgage loans in Reading involving $41.3 million in financing.