MassHousing has closed on $5.8 million in financing to Rees-Larkin Development, LLC, and Berkshire Housing Development Corporation, for the first phase of the redevelopment of the former Eagle Mill property in Lee, which will create 56 new affordable apartment homes.
The new housing will be developed in the two primary historic mill buildings in the Eagle Mill complex, and the development is the first part of a multiphase plan to fully transform the former mills into residential and commercial space. The mill campus was built in 1808 along the Housatonic River and operated as a paper mill for 200 years until closing in 2008.
“MassHousing is excited to be part of this transformational project that is going to take a large, vacant mill property, and bring it back to life as a vibrant residential community on the Housatonic River in Lee,” said MassHousing CEO Chrystal Kornegay. “The new apartment homes will be affordable to households across a range of incomes and will provide housing stability and economic opportunity for residents who want to live and work in Western Massachusetts.”
“We are grateful for the role played by MassHousing in making this long-awaited project become a reality,” said Jon Rudzinski, owner of Rees-Larkin Development. “When significant post-COVID construction cost increases threatened the financial feasibility of the project, the willingness of MassHousing to increase the size of its Middle Income Housing commitment from $2 million to $3 million was crucial in preserving the viability of the project.”
“Berkshire Housing is pleased to be bringing 56 new apartments to the Berkshires through this partnership with Rees-Larkin. We are grateful to MassHousing for their critical funding and commitment to this important project,” said Berkshire Housing CEO Eileen Peltier.
MassHousing is providing the development team with a $2.8 million permanent loan and $3 million in Middle Income Housing financing.
Other financing sources include $13.5 million in equity from an allocation of state and federal Historic Tax Credits, $9.7 million from an allocation of Low Income Housing Tax Credits by the Executive Office of Housing and Livable Communities (EOHLC), $4.4 million in direct support from EOHLC, $1 million in American Rescue Plan Act financing through the Affordable Housing Trust Fund, which MassHousing manages on behalf of EOHLC, $1.8 million from the Berkshire Regional Planning Commission, $150,000 from the Town of Lee, and $30,000 in Mass Save financing. The tax credit investor is Stratford Capital Group LLC.
The general contractor will be DEW Construction, the architect is DBVW Architects, LLC, and the management agent will be Berkshire Housing Services.
