BOSTON – April 1, 2024 – MassHousing has closed on $5.8 million in financing to Rees-Larkin Development, LLC, and Berkshire Housing Development Corporation, for the first phase of the redevelopment of the former Eagle Mill property in Lee, which will create 56 new affordable apartment homes.
The new housing will be developed in the two primary historic mill buildings in the Eagle Mill complex, and the development is the first part of a multiphase plan to fully transform the former mills into residential and commercial space. The mill campus was built in 1808 along the Housatonic River and operated as a paper mill for 200 years until closing in 2008.
"MassHousing is excited to be part of this transformational project that is going to take a large, vacant mill property, and bring it back to life as a vibrant residential community on the Housatonic River in Lee," said MassHousing CEO Chrystal Kornegay. "The new apartment homes will be affordable to households across a range of incomes and will provide housing stability and economic opportunity for residents who want to live and work in Western Massachusetts."
"We are grateful for the role played by MassHousing in making this long-awaited project become a reality," said Jon Rudzinski, owner of Rees-Larkin Development. "When significant post-COVID construction cost increases threatened the financial feasibility of the project, the willingness of MassHousing to increase the size of its Middle Income Housing commitment from $2 million to $3 million was crucial in preserving the viability of the project."
"Berkshire Housing is pleased to be bringing 56 new apartments to the Berkshires through this partnership with Rees-Larkin. We are grateful to MassHousing for their critical funding and commitment to this important project," said Berkshire Housing CEO Eileen Peltier.
MassHousing is providing the development team with a $2.8 million permanent loan and $3 million in Middle Income Housing financing.
Other financing sources include $13.5 million in equity from an allocation of state and federal Historic Tax Credits, $9.7 million from an allocation of Low Income Housing Tax Credits by the Executive Office of Housing and Livable Communities (EOHLC), $4.4 million in direct support from EOHLC, $1 million in American Rescue Plan Act financing through the Affordable Housing Trust Fund, which MassHousing manages on behalf of EOHLC, $1.8 million from the Berkshire Regional Planning Commission, $150,000 from the Town of Lee, and $30,000 in Mass Save financing. The tax credit investor is Stratford Capital Group LLC.
Of the 56 new apartments, eight will be restricted to households earning up to 30 percent of the Area Median Income (AMI), 28 apartments will be restricted to households earning up to 60 percent of AMI and 20 apartments will be restricted to households earning up to 80 percent of AMI. There will be 24 one-bedroom apartments, 24 two-bedroom apartments and eight three-bedroom apartments.
The general contractor will be DEW Construction, the architect is DBVW Architects, LLC, and the management agent will be Berkshire Housing Services. Construction is expected to be completed by August 2025.
About Rees-Larkin Development, LLC
Rees-Larkin Development LLC is a real estate development firm founded in 2008 that specializes in the development of affordable and mixed-income housing in New England.
About Berkshire Housing Development Corporation
Berkshire Housing Development Corporation is the regional provider of housing solutions including housing development, service-oriented property management, rental housing vouchers, emergency financial assistance and more. Formed over 50 years ago, Berkshire Housing has a long history of affordable housing development in the Berkshires including several recently completed projects utilizing the LIHTC program and other federal and state sources. Developments focus on community needs including downtown and neighborhood revitalization along with addressing the need for housing. Berkshire Housing provides comprehensive mission-based property management to close to 1,000 apartments across the Berkshires. Berkshire Housing also serves as the region’s Housing Consumer Education Center (HCEC) providing homebuyer and housing counseling, information and referrals to an average of 1600 households each year. For more information, please visit www.berkshirehousing.com.
About MassHousing
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 $30 billion for affordable housing. For more information, follow us on Twitter, Facebook, Instagram and LinkedIn.
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