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MassHousing Closes on $10M for Affordable, Workforce Development in Chelsea
MassHousing has finalized $10.4 million in affordable and workforce housing financing to the non-profit The Neighborhood Developers, Inc., for the $25.6-million transformation a former light industrial site at 25 Sixth Street in Chelsea, MA into 62 new mixed-income rental and homeownership units.
MassHousing is supporting the project’s rental component by providing TND with a $6.9 million permanent loan, $1.2 million in financing from the Agency’s Workforce Housing Initiative, and $932,500 in additional subordinate financing.
The rental financing also involved approximately $13.6 million in tax credit equity from an allocation of federal and state Low Income Housing Tax Credits by the Massachusetts Department of Housing and Community Development (DHCD), $4.2 million in direct support from DHCD, $1 million from the Affordable Housing Trust Fund, and $1.2 million in local funding from the North Shore HOME Consortium. Silicon Valley Bank will be the construction lender and the Massachusetts Housing Investment Corporation will be the tax credit syndicator.
The agency has also committed $1.38 million in CommonWealth Builder funds to support the creation of the project’s six new homeownership condominiums. Other funding sources in the homeownership transaction include a $3 million construction loan from Silicon Valley Bank, $300,000 from the Affordable Housing Trust Fund, $637,000 in local funding from the North Shore HOME Consortium, and $50,000 from the Charlesbank Foundation.
- ◦Development
