Rising home costs and rents that have more than doubled in the past decade are making it harder and harder for East Boston residents to remain in the neighborhood.
In one of the hottest real estate markets in the City of Boston, the East Boston Community Development Corporation is doing what it can to keep housing affordable for hundreds of families and seniors.
Last week it was announced that the CDC has secured $10.6 million in financing from MassHousing to preserve 111 units of affordable housing the CDC owns that were set to expire.
Landfall Community Associates, owned by the CDC, comprises of five low- and mid-rise buildings across scattered sites. The transaction refinances two affordable housing communities, the 15-unit Landfall Apartments and the 96-unit East Boston Rehab. The deal is set to extend affordability at the CDC’s Landfall sites for at least 15 years.
“Once Again MassHousing has been a great partner in providing us with the ability to provide and preserve affordable housing,” said EBCDC Executive Director Al Caldarelli. “There has never been a greater need for affordable housing than we are experiencing in East Boston today. With MassHousing as our partner we are confident we will succeed in this venture.”
Located at 72 Marginal St., 12 Seaver St., 265 and 350 Meridian St., and 186-192 Cottage St., the CDC properties serve working families.
According to MassHousing, the over $10 million financing will resolve the expiring affordability restrictions from the state backed Section 13A mortgage on the 96 East Boston Rehab units. The Section 13A program was created by the Massachusetts Legislature in the 1970s to provide low-interest mortgage financing to affordable housing communities. Today, 13A communities serve some of the lowest-income and most vulnerable populations in Massachusetts, including many of Eastie’s elderly residents. The mortgages on these 13A housing communities are nearing maturity. With no federal resources are available for their preservation these 111 units risked becoming market rate.
The Department of Housing and Community Development is also providing $1 million in financing toward the 13A preservation at Landfall.
“This is a great outcome for the residents of these two affordable housing communities, said MassHousing Acting Executive Director Tom Lyons. “MassHousing and the East Boston CDC worked closely to ensure that affordability would be preserved and extended, and that the expiring 13A subsidy was resolved in a way that protects residents for the long term. Significant property improvements mean the Landfall Community properties will continue to serve Boston’s working families well into the future.”
Aside from preserving the affordability of the 111 units, the loan will help the CDC renovate kitchens and bathrooms, replace and refurbish all windows, repair the building’s flooring, brick and masonry, upgrade the fire alarm systems and part of the roof. The general contractor will be Knollmeyer Building Corp., the architect is Davis Square Architects and the management agent is Metro Management.