BOSTON – May 24, 2022 – MassHousing has closed on $21.4 million in affordable housing financing to Beacon Communities LLC for the refinancing and extension of affordability at the 103-unit Wilkins Glen in Medfield.
As part of the transaction, Beacon Communities will extend the current Section 8 Housing Assistance Payment contract on 82 affordable apartments at Wilkins Glen for 30 years, through 2052.
"Wilkins Glen is a well-maintained housing community that provides important affordable rental homes to residents in Medfield," said MassHousing Executive Director Chrystal Kornegay. "MassHousing was pleased to partner with Beacon Communities to extend the affordability there for another 30 years, which will provide housing stability and economic opportunity for the residents for the long term."
Mary Corthell, Beacon Communities' Executive Vice President of Asset Management, noted, "The preservation of housing affordability at Wilkins Glen will improve the quality of life for our residents for decades to come. We are delighted to have partnered with MassHousing on this important transaction."
Wilkins Glen 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 $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 $21.4 million, 35-year permanent loan.
"Rockport Mortgage is pleased to once again work with the principals of Beacon Communities and MassHousing in preserving the affordability of Wilkins Glen," said Dan Lyons, President of Rockport Mortgage. "The property will continue to serve as valuable affordable housing stock for the community of Medfield for many years to come."
Located at 1100 Wilkins Glen Road, in Medfield, the housing community was constructed in 1975 and consists of seven two-story apartment buildings, three two-story townhouse buildings, a four-bedroom single-family house and a clubhouse/leasing office. There are 54 one-bedroom apartments, 28 two-bedroom apartments, 18 three-bedroom apartments and three four-bedroom apartments. Twenty-one units are unrestricted and available to lease at market rents.
Beacon purchased the property in 2012 and completed extensive property improvements totaling $4.6 million. In 2020, all property’s boilers were all replaced, as were some fire system panels.
About MassHousing's MAP/Ginnie Mae Initiative
MassHousing has partnered with three well-known and experienced MAP lenders CBRE, 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 Beacon Communities LLC
Beacon Communities LLC is a privately owned real estate firm that develops, acquires, invests in, and manages a wide range of multi-family housing. Their portfolio includes affordable housing, market rate housing and mixed income-housing. Their developments range from new construction, to historic adaptive reuse, to the renovation of existing housing. They take on challenging developments and make them succeed. Their driving passion is to create well-designed, healthy homes that improve the quality of life of their residents and enhance the neighborhoods in which they are located. For more information about Beacon Communities LLC please visit www.beaconcommunitiesllc.com.
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.