MassHousing has closed on $13.3 million in affordable housing financing to Van der Heyden Apartments Limited Partnership for the acquisition, renovation and extension of affordability at the 45-unit Van der Heyden Apartments in Springfield.
The property owner plans approximately $9 million in property improvements and has executed a 20-year federal Section 8 Housing Assistance Payment contract in which 18 of the apartments are restricted to households earning up to 30 percent of the Area Median Income (AMI) and 27 of the apartments are for households earning up to 50 percent of AMI.
“The Van der Heyden Apartments are an important affordable housing resource in Springfield but are in need of substantial renovation for the residents,” said MassHousing Executive Director Chrystal Kornegay. “MassHousing is pleased that this transaction will result in the needed property improvements but will also ensure affordability for the residents for at least 20 years.”
MassHousing is providing Van der Heyden Apartments Limited Partnership, and its General Partner Paul Oldenburg, with $9.9 million in construction financing and $3.4 million in construction and permanent financing. MBL Housing and Development, LLC was the project consultant.
Other financing sources include $8.5 million in equity financing from the allocation of state and federal Low-Income House Tax Credits by the Massachusetts Executive Office of Housing and Livable Communities (EOHLC), $4.3 million in historic tax credit equity financing, $1 million in direct support from EOHLC, $1 million in funding from the Affordable Housing Trust Fund, which MassHousing manages on behalf of EOHLC, and $50,000 from the city of Springfield. The tax credit syndicator and investor is the Massachusetts Housing Investment Corporation (MHIC).
Located in Springfield’s Mason Square and built in 1914, the Van der Heyden Apartments are contained in a five-story, brick building with 33 one-bedroom apartments and 12 two-bedroom apartments. First-floor commercial space will be converted to a supportive services area with an office and meeting room.
Among the renovations planned over a 12-month period are masonry repairs, roof replacement, window replacement, apartment and common area upgrades, new boilers, and plumbing, heating, fire suppression, and electrical improvements.
The general contractor is N.L. Construction, Inc. The architect is Studio One, Inc., and the management agent is Valley Real Estate.
MassHousing has financed 14 rental housing communities in Springfield totaling 2,757 units of housing with an overall original loan amount of $183.3 million. The Agency has also provided home mortgage loans to 5,226 homebuyers and homeowners in Springfield with an original purchase principal balance of $420.4 million.
