The affordability of homes for lower-income seniors has been extended for at least 20 years at the 43-unit Casselman House in Newton, Mass.
MassHousing has provided $8.1 million in financing to nonprofit Newton Community Development Foundation (NCDF) to help preserve the longtime development.
NCDF refinanced Casselman House through MassHousing’s Multifamily Accelerated Processing (MAP)/Ginnie Mae Joint Venture Initiative with lender partner Rockport Mortgage Corp.
MassHousing offers the MAP/Ginnie Mae loan program to the owners of rental housing through the Department of Housing and Urban Development (HUD). HUD provides expedited Federal Housing Administration (FHA) insurance approvals through the MAP program.
MassHousing surpassed $1 billion in cumulative MAP lending earlier this year.
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, seniors, and families. MassHousing is providing NCDF with an $8.1 million, 35-year permanent loan, according to officials.
“We were pleased to work with NCDF to preserve and extend affordability for these lower-income seniors in Newton,” said MassHousing executive director Chrystal Kornegay “Newton has some of the highest housing costs in the country, and this transaction will ensure that this important affordable housing resource will serve older residents in the city long into the future, while deepening NCDF’s capacity to continue its mission-driven work.”
Built in 1981, Casselman House consists of 43 one-bedroom apartments in a single residential building. All of the age-restricted apartments—except one—are subsidized by a federal Section 8 Housing Assistance Payment contract. One unit is occupied by a property manager. As part of the transaction, NCDF has extended the Section 8 contract on 42 units, ensuring affordability restrictions at the property will remain for at least 20 additional years.
Improvements planned or completed at the property include asphalt shingle roof replacement, rubber membrane roof replacement, the relocation of satellite telecommunications equipment, and upgrading environmental remediation pumps and equipment.
“All of us at NCDF are extremely grateful for the continued support of MassHousing and are pleased to have been able to preserve and extend the affordability at Casselman House,” said Jeanne Strickland, NCDF executive director. “NCDF has partnered with MassHousing for over 45 years to develop and preserve several of the properties in our portfolio, and we have benefitted from their financial support as well as their long-term investment in providing guidance and support to our property management team. This was our first venture with Rockport Mortgage Corp., and we were appreciative for the level of attention and expertise they provided throughout the process. We had a great team and despite the challenges of working remotely due to the restrictions resulting from the COVID-19 pandemic, we were able to close on the financing as scheduled.”