BOSTON – August 14, 2023 – Senior citizens and residents with disabilities living at the 106-unit Bixby Brockton Apartments in Brockton will have affordable rents extended for the long term and the property will see approximately $800,000 in improvements as a result of $12.9 million in MassHousing financing.
Affordable Housing and Services Collaborative, Inc. (AHSC), which owns Bixby Brockton, refinanced the property through MassHousing’s Multifamily Accelerated Processing (MAP)/Ginnie Mae Joint Venture program with partner lender Rockport Mortgage Corporation.
"MassHousing was pleased to collaborate with AHSC to ensure that the residents at the Bixby Brockton Apartments will have high-quality rental homes that they can afford for many years into the future," said MassHousing Executive Director Chrystal Kornegay.
"Bixby Brockton is an important property in AHSC's portfolio, and we are thankful for our continued partnership with MassHousing and Rockport Mortgage Corporation to utilize the MAP/Ginnie Mae loan program to address physical needs and to extend affordability for elders and persons with disabilities," said AHSC Executive Director Michael J. Mattos.
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 AHSC with a $12.9 million, 35-year permanent loan.
"Rockport Mortgage is pleased to once again work with AHSC, as well as MassHousing, in order to preserve this important housing asset to the City of Brockton," said Dan Lyons, Managing Partner of Rockport Mortgage. "This loan will provide funding for repairs and maintenance at the property, improving the quality of life for the senior citizens who call Bixby Brockton Apartments home."
Of the 106 apartments, 104 are subsidized by two federal Section 8 Housing Assistance Payment contracts. As part of the transaction, AHSC has executed two new 20-year HAP contracts, which will include 17 years remaining on the contract for 44 of the units, and 13 years remaining on the contract for 60 of the units. The transaction will extend affordability for 37 years and 33 years, respectively.
The Bixby Brockton Apartments are contained in the four-story Brockton Centre Building built in 1875 and the seven-story Bixby Building built in 1983 located at 103 and 106 Main St. in downtown Brockton. There are 88 one-bedroom apartments and 18 two-bedroom apartments. Two of the units are occupied by maintenance and security staff.
Among the improvements slated for the property are unit repairs, two new heating systems, a new fence, replacing the elevators in one of the buildings, security camera upgrades and extending a laundry room.
MassHousing has financed 16 rental housing communities in Brockton totaling 2,498 housing units and $104.5 million in overall financing. The Agency has also provided home mortgage loans to 2,119 homebuyers and homeowners in Brockton with an original purchase principal balance of $317 million.
About MassHousing's MAP/Ginnie Mae Initiative
MassHousing has partnered with two well-known and experienced MAP lenders: CBRE 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 Affordable Housing and Services Collaborative, Inc.
Affordable Housing and Services Collaborative, Inc. is a 501c3 non-profit organization founded in 2001. Its mission is to provide and preserve affordable housing for low-income families, youth, elders, persons with disabilities, as well as special populations. Fulfilling their mission is a collaborative effort and process that includes working with private and public partners to seek project financing, grant funding and other leveraged resources to acquire, develop, rehabilitate and create affordable housing opportunities, as well as to enhance and expand quality of life initiatives through funding wellness, educational, vocational, and social programming. AHSC has been involved in many complex affordable housing developments involving new construction, as well as historic and occupied rehabilitation. Through their involvement in more than 20 projects in various roles they have kept approximately 1,300 units affordable. For more information about AHSC please visit www.ahsc.org.
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.
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 $29.5 billion for affordable housing. For more information, follow us on Twitter, Facebook and LinkedIn.
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