MassHousing has closed on $35.3 million in affordable housing financing to Urban Edge for the refinancing and extensive renovation of the 78-unit Bancroft Dixwell Apartments in Roxbury and Jamaica Plain.
Urban Edge will utilize the funding to make substantial renovations to the properties, investing approximately $17 million in property upgrades. As part of the transaction, Urban Edge is merging the 45-unit Bancroft Apartments, and the 33-unit Dixwell Apartments, in Roxbury and Jamaica Plain, into one scattered-site entity.
“The Bancroft Dixwell Apartments are an important source of affordable housing in Roxbury and Jamaica Plain but are in need of significant upgrades,” said MassHousing Executive Director Chrystal Kornegay. “MassHousing was pleased to partner with Urban Edge to ensure that these 78 rental homes are modernized, in order to provide their residents with affordable rents and economic opportunity for many years into the future.”
“Throughout Urban Edge’s history, MassHousing has been a reliable partner in our work to preserve and build new affordable housing in Roxbury, Jamaica Plain, and beyond. Because of our partnership, the 78 families living at Bancroft Dixwell will see extensive improvements and upgrades made to their homes where they can grow and thrive, all while preserving affordability,” said Urban Edge CEO Emilio Dorcely.
MassHousing is providing Urban Edge with approximately $16.5 million in tax-exempt construction and permanent financing and $18.8 million in bridge loan financing.
Other financing sources include $22.7 million in federal Low Income Housing Tax Credit financing, $3.1 million in federal Historic Tax Credit financing, $1.1 million in state Historic Tax Credit financing, and an $18.9 million seller note. Enterprise Housing Credit Investments, LLCousing is the tax credit syndicator and investor.
Among the property improvements planned are the replacement of kitchens and bathrooms, replacement of obsolete heating systems, repair or replacement of failing building envelopes, new sprinkler systems to all the buildings, and the creation of accessible apartments. Construction is expected to be completed in the summer of 2023.
The Bancroft Apartments consist of two-, three-, and four-bedroom apartments located in four low-rise, brick masonry buildings built in the early 20th century on two sites in Roxbury and Jamaica Plain. The Dixwell Apartments consist of two- and three-bedroom apartments in four brick and wood-frame buildings on three sites in Roxbury and Jamaica Plain. Six of the eight buildings are considered historic.
Overall, there are 23 two-bedroom apartments, 53 three-bedroom apartments and two four-bedroom apartments. Of the 78 apartments, 75 are restricted to households earning at or below 60 percent of the Area Median Income (AMI) and three apartments are unrestricted. Forty-five of the apartments are supported by a federal Section 8 Housing Assistance Payment contract, which will be extended for 20 years, and eight units are supported by the Massachusetts Rental Voucher Program. The AMI for Boston is $120,800 for a family of four.
The development team includes general contractor NEI General Contracting, architect Davis Square Architects, management agent WinnCompanies, Construction Services Consultation Company of New England, Schwarzschild Consulting, and Klein Hornig.