MassHousing Closes on $17.1 Million in Financing for Affordable Housing in LawrenceFebruary 08, 2018 - By The Real Reporter
BOSTON—MassHousing recently closed on a total of $17.1 million in financing to an affiliate of Trinity Financial, Inc., for the creation of a new, 102-unit, affordable housing community in Lawrence. Trinity Financial will transform the former Van Brodie Mill into new mixed-income housing within a smart growth district off Broadway, near the border of Methuen. As Trinity Financial’s first undertaking in Lawrence, the adaptive reuse project will preserve a historic former mill, while remediating a Brownfields site.
Constructed in 1919 by the Arlington Mills company, the Van Brodie Mill originally manufactured yarn for wool and flannel. By the 1950s, the Arlington Mills company had closed and the Van Brodie Mill was operated by a company that shifted production to food products, including packaged breakfast cereals and rations for the military. Now, the Van Brodie Mill will provide key low-income housing options for the community. “Van Brodie Mill will be an important new housing resource for working families in Lawrence,” commented MassHousing Acting Executive Director, Tom Lyons. “This transformational project will put a former Brownfield back into productive use, while advancing regional economic development, and enabling families to live affordably and prosper in greater Lawrence.”
The new apartments will serve residents with a broad range of incomes. Of the 102 units, 16 will be for very low-income households earning at or below 30 percent of the area median income (AMI), 67 will be for low-income households earning at or below 60 percent of the AMI, and 19 will be dedicated for workforce housing for households earning between 61 and 80 percent of the AMI. The AMI for Lawrence and the surrounding area is $87,600 for a family of four. The completed project will contain eight studio apartments, 25 one-bedroom apartments, 56 two-bedroom apartments and 13 three-bedroom apartments.
MassHousing is providing more than $17 million in affordable housing funding, including a $14 million conduit bridge loan, $1.2 million in permanent financing, and $1.9 million in workforce housing funds. An allocation of state and federal Low-Income Housing Tax Credits from the Massachusetts Department of Housing and Community Development (DHCD) will generate nearly $29 million in equity financing for the project. Federal and state historic tax credits will contribute an additional $8.4 million of equity. DHCD invested $2.3 million of funding through its Housing Stabilization Fund. The project also received $2.3 million through the Affordable Housing Trust Fund (AHTF), which MassHousing manages on behalf of DHCD. TD Bank will provide approximately $35 million of construction financing, as well a $14 million letter of credit. Red Stone Equity Partners will serve as the tax credit syndicator, while the Architectural Heritage Foundation is the project’s non-profit lender and historical consultant.
“We are thrilled to begin the transformation of the Van Brodie Mill,” lauds Trinity Financial Project Manager, Dan Drazen. “Thanks to MassHousing’s investment, this project will breathe new life into a historically significant asset while creating much-needed mixed-income housing in the Gateway City of Lawrence.” MassHousing has had a long history of supporting affordable housing in Lawrence. In its past, the organization has financed or administers the subsidy contract for 16 rental communities in Lawrence, for a total of 1,965 housing units and an original loan amount of $103 million. The Agency has also provided $120.5 million in financing to 1,341 Lawrence homebuyers or homeowners.
The redevelopment of Van Brodie Mill advances the Baker-Polito Administration’s goal of creating up to 1,000 new workforce housing units affordable to middle-income households through MassHousing’s $100 million Workforce Housing Initiative. Since the inception of the initiative in 2016, MassHousing has committed or closed workforce housing financing totaling $49.7 million, to 23 projects, located in 13 cities and towns. To date, the Workforce Housing Initiative has advanced the development of 2,111 housing units across a range of incomes, including 538 workforce housing units.
The other contributing financers to the project look forward to its groundbreaking. “This is a very important project that will allow low-income families to have a place they can call home,” remarked Thomas McColgan, Vice President at TD Bank. “This is one of our many projects with Trinity Financial and we are incredibly pleased to work with such a great set of partners to provide top-quality affordable housing for the residents of Lawrence.” Red Stone Equity Partners also appreciates the opportunity to give back to the Lawrence community through this project. “Red Stone Equity Partners was pleased to provide over $37 million in tax credit equity to support the Van Brodie Mill redevelopment and partner with Trinity Financial on this important affordable housing development serving families in the Lawrence community,” says Rob Vest, Red Stone Equity Principal and Managing Director of Acquisitions.