BOSTON – January 29, 2024 – MassHousing has closed on $16.4 million in affordable housing financing to Alinea Capital Partners for the development of 10 @ 8th, which will include 52 new rental homes in downtown New Bedford.
The new apartments will be constructed in a five-story building on a site containing a vacant former Registry of Motor Vehicles building and a parking lot. The vacant building will be demolished, and the new building will feature first-floor commercial space with the 52 rental units on the upper floors. The new housing will be centrally located near regional public transportation, New Bedford City Hall, the University of Massachusetts at Dartmouth's College of Visual and Performing Arts, the Zeiterion Theatre, the Whaling Museum and a collection of art galleries, restaurants, and other urban amenities.
"To be able to redevelop an underutilized parcel in the heart of New Bedford into a new housing community that will be affordable to 52 households is an exciting opportunity for the city and the residents who will call 10 @ 8th home," said MassHousing CEO Chrystal Kornegay. "MassHousing is pleased to be part of this effort that is going to provide the project’s new residents with housing stability and economic opportunities in greater New Bedford."
"After years of collaboration with the City of New Bedford and community leaders, we are pleased to begin construction of this landmark development. New Bedford's working families deserve housing that is convenient, attractive, and affordable," said L. Duane Jackson, Managing Member of Alinea Capital Partners, LLC. "This project would not be possible without the support of the Office of the Mayor and the public and private partners who invested time and capital to create a viable structure to achieve long term long-term affordability for the residents of the city. As New Bedford becomes a hub of America's emerging offshore wind industry, we are proud to be a critical part of building the Whaling City's bright future."
MassHousing is providing Alinea Capital Partners with $2.2 million in permanent financing and $14.2 million in tax credit equity bridge financing.
Other financing sources include approximately $17.4 million in tax credit equity from an allocation of state and federal Low Income Housing Tax Credits by the Massachusetts Executive Office of Housing and Livable Communities (HLC), $8.92 million in direct support from HLC, including $6.9 million in American Rescue Plan Act (ARPA) financing, $15.6 million in construction financing from JPMorgan Chase & Company, $3 million in New Bedford ARPA and CGBG financing, $1 million through the Affordable Housing Trust Fund, which MassHousing manages on behalf of HLC, $54,889 in Solar Tax Credit financing, and $34,676 in Mass Save financing. The Massachusetts Housing Investment Corporation will be the tax credit syndicator and investor.
Of the 52 new apartments, eight will be restricted to households earning up to 30 percent of the Area Median Income (AMI) and supported by a federal Section 8 Housing Assistance Payment contract, 36 apartments will be restricted to households earning up to 60 percent of AMI, and eight apartments will be for households earning up to 80 percent of AMI. There will be 12 one-bedroom apartments, 36 two-bedroom apartments, and four three-bedroom apartments.
The contractor will be D.F. Pray, the architect is DHK Architects, and the management agent will be the WinnCompanies. Construction is expected to be completed by June 2025.
MassHousing has financed 10 rental developments in New Bedford involving 1,831 housing units and $163.3 million in total financing. The Agency has provided 2,395 home mortgage loans to 2,389 New Bedford homebuyers and homeowners with $283 million in original financing.
About Alinea Capital Partners LLC
Headquartered in Boston, Alinea Capital Partners is a real estate development and investment firm operating in Massachusetts, South Carolina, and Florida.
About MassHousing
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 $30 billion for affordable housing. For more information, follow us on Twitter, Facebook and LinkedIn.
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