BOSTON – December 6, 2022 – MassHousing has closed on $18 million in affordable housing financing to CSI Support & Development Services for the preservation and renovation of Admiral's Tower Co-op in Chelsea. As part of the transaction, affordability protections for senior citizens and residents with disabilities living at the 100-unit property will be extended for at least 25 years.
"MassHousing is proud to partner with CSI Support & Development Services to not only extend affordability protections at Admiral's Tower for the long term, but to also start substantial property renovation and upgrades for the well-being and comfort of the residents," said MassHousing Executive Director Chrystal Kornegay.
"CSI understands the importance of preserving affordable housing and we could not be more thrilled about this investment for our resident-members at Admiral's Tower Co-op," said Chief Executive Officer Anne Sackrison. "Our goal is to provide the best quality housing possible at the lowest feasible cost to our resident members, while enriching the quality of life for all who reside here now and for years to come."
As part of the transaction, CSI Support & Development has executed a new 20-year HUD Section 8 Housing Assistance Payment contract for 99 of the 100 apartments at Admiral's Tower. 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.
CSI Support & Development Services plans approximately $4 million in property improvements, including kitchen and bathroom refurbishments in all units, masonry repair and repointing, replacing entrance doors and fencing, sealcoating the parking lot, installing new smoke and carbon monoxide detectors, and new LED lighting. Work plans also include renovating common space, adding an exercise room and staff offices, reconditioning windows, and building insulation, and HVAC upgrades in the units.
Admiral's Tower 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 CSI Support and Development Services with an $18 million, 35-year permanent loan.
"With such a strong demand for rental units in the Metro Boston area, the preservation of existing affordable housing is critically important to our most vulnerable," noted Dan Lyons, President of Rockport Mortgage. "We are proud to work with CSI and MassHousing to improve the quality of life for those Chelsea residents who call Admiral's Tower home as well as ensure the affordability of the property for another 25 years."
Admiral's Tower was constructed by CSI in 1986 and the 100 apartments are contained in a six-story brick building. There are 26 studio apartments and 74 one-bedroom apartments.
MassHousing has financed 13 rental housing communities in Chelsea involving 1,386 housing units, and an original loan amount of $129 million. The Agency has also provided $94.7 million in financing to 774 Chelsea homebuyers or homeowners.
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 CSI Support and Development Services
CSI Support & Development is a resident-member controlled organization that utilizes a cooperative management system and engages its resident membership in decision-making at every level of its operations. CSI was incorporated in 1945 as a mission-driven non-profit and exists solely to provide the highest quality, affordable housing communities possible for low-income senior citizens. CSI has 61 properties with over 6500 units in California, Maryland, Massachusetts, and Michigan, including 55 HUD-subsidized developments. For more information, please visit www.csi.coop and follow us on Facebook. To apply, call (800) 225-3151.
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.