BOSTON – February 6, 2023 – MassHousing has closed on $12.4 million in affordable housing financing to St. Mary's Plaza, Inc., for the refinancing, renovation, and preservation of the 99-unit St. Mary's Plaza community in Lynn. As a result of the transaction, St. Mary's Plaza, Inc. will extend affordability protections for senior citizens and residents with disabilities for at least 25 years.
The transaction will involve approximately $1.4 million in property improvements including new roofing, kitchen upgrades in 79 units, new appliances, sewer and water line repairs and snow guard replacement.
"MassHousing is pleased that this transaction will not only extend affordability for the residents at St. Mary's Plaza, but also enable substantial property renovations and upgrades for the well-being and comfort of the residents," said MassHousing Executive Director Chrystal Kornegay.
Edward T. Calnan, President of the Board of Directors at St. Mary's Plaza Inc., said, "We have always strived to keep our buildings in great shape. Now at 42 years old, we will be able to make more substantial improvements to them because of this loan. Thanks to our board members, Maloney Properties and the financial entities involved for making this happen. Importantly, we also get to extend the affordability to the residents of our housing community for another 25 years. This is good news, not only for us but for the city of Lynn which is facing the challenge of finding ways to provide and maintain affordable housing for its residents."
As part of the transaction, St. Mary's Plaza, Inc., has executed a new 20-year HUD Section 8 Housing Assistance Payment contract for 98 of the 99 apartments at St. Mary's Plaza. The new contract will include five years remaining on the previous contract, for an overall extension of affordability of 25 years. There is an additional unit on the property for management staff.
St. Mary's Plaza 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 $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 provided St. Mary's Plaza, Inc. with a $12.4 million, 35-year permanent loan.
"Rockport Mortgage is pleased to once again work with Maloney Properties and MassHousing in preserving the affordability of St. Mary's Plaza," said Dan Lyons, President of Rockport Mortgage. "The property will continue to serve as valuable affordable housing stock for the community of Lynn for many years to come."
St. Mary's Plaza was created in 1981 with the conversion of a three-story school building into housing and the construction of a seven-story brick apartment building that are connected with an enclosed walkway. There are 94 one-bedroom apartments and five two-bedroom apartments.
The property manager is Maloney Properties.
MassHousing has financed 26 rental housing communities in Lynn involving 4,039 housing units, and an original loan amount of $280.4 million. The Agency has also provided $439.5 million in financing to 2,982 Lynn homebuyers or homeowners.
About MassHousing's MAP/Ginnie Mae Initiative
MassHousing has partnered with two well-known and experienced MAP lenders, Capital One and Rockport Mortgage Corporation. The MAP lender prepares the submission of each transaction for HUD's approval. MassHousing then closes the new loan and issues a Ginnie Mae Mortgage Backed Security (MBS), which has consistently provided the multifamily mortgage industry its most competitive long term, taxable interest rates.
With each MAP/Ginnie Mae loan, MassHousing continues as the mortgagee of record and becomes a Ginnie Mae servicer. This ensures affordability, as each completed transaction will require the property owner to rent at least 20 percent of the units to those earning less than 80 percent of the area median income. Affordability at many properties could be at risk were MassHousing unable to offer this product, as owners could refinance with other lenders who do not require affordability restrictions.
About Rockport Mortgage Corporation
Rockport Mortgage Corporation is a privately-owned commercial mortgage banking firm founded in 1992 and located on the North Shore of Boston. Rockport specializes in providing FHA-insured loans to market-rate, affordable and senior housing communities and healthcare facilities through the Department of Housing and Urban Development (HUD) and has been approved under HUD's Multifamily Accelerated Processing (MAP) Program since the program inception in 2001. The Rockport team works collectively to navigate the complexities of FHA/HUD-insured finance programs, developing strategic solutions to meet the needs of our clients. For more information about Rockport Mortgage Corporation please visit www.rockportmortgage.com.
MassHousing (The Massachusetts Housing Finance Agency) is an independent, quasi-public agency created in 1966 and charged with providing financing for affordable housing in Massachusetts. The Agency raises capital by selling bonds and lends the proceeds to low- and moderate-income homebuyers and homeowners, and to developers who build or preserve affordable and/or mixed-income rental housing. MassHousing does not use taxpayer dollars to sustain its operations, although it administers some publicly funded programs on behalf of the Commonwealth. Since its inception, MassHousing has provided more than $27.5 billion for affordable housing. For more information, follow us on Twitter, Facebook and LinkedIn.