King Pine, managed by Schochet Companies, completes $11.6 million refinancing, preservation and rehabilitation transaction
BOSTON– MassHousing has provided a total of $11.6 million in affordable housing financing to the non-profit Retirement Housing Foundation (RHF), for the renovation and preservation of two adjacent affordable housing communities in Orange, MA.
As part of the transaction, RHF will combine the 120-unit King James Court property, which serves elderly and disabled residents, and the 114-unit Pine Crest apartments, which serves low-income families, into a single new entity called King Pine.
RHF will invest approximately $7 million in property renovations. The 234 apartments will be primarily for households earning at or below 60 percent of the Area Median Income (AMI) and will remain affordable for at least 40 years. The AMI for Orange is $74,800 for a family of four.
“This transaction is going to provide long term affordability and stability for seniors and lower-income families in Orange,” said MassHousing Executive Director Chrystal Kornegay. “Retirement Housing Foundation has a distinguished history of providing a range of quality, affordable homes for people across all walks of life with low or modest incomes and MassHousing was pleased to partner with them to preserve and rehabilitate this important housing resource in Orange.”
MassHousing provided RHF with a $9.8 million construction and permanent loan, a $1.1 million tax-exempt bridge loan and a $750,000 taxable bridge loan. The MassHousing financing also generated $5.3 million in equity financing, through federal Low-Income Housing Tax Credits.
Other financing sources include $1.7 million from the Massachusetts Department of Housing and Community Development (DHCD), a $5.1 million sponsor note from RHF and a $1.2 million deferred developer fee.
“We are so grateful for all of the support that MassHousing and DHCD have provided to preserve and improve this critical affordable housing asset. Being able to invest $7 million in these properties will dramatically improve the quality of life for our residents and ensure the properties can be maintained in good order for the long term,” said Dr. Laverne R. Joseph, RHF’s President and CEO.
As part of the housing preservation transaction, RHF will undertake extensive site work improvements at King Pine, including repaving driveways, walkways and curbing, and replacing buried electrical power lines. RHF will also upgrade accessibility at the property, replace roofing and siding, and make upgrades to some kitchens and bathrooms.
King Pine is located at 383 and 419 East River Street in Orange. There are 138 one-bedroom apartments, 72 two-bedroom apartments, 18 three-bedroom apartments and 6 four-bedroom apartments. Of the 234 apartments, 148 are supported by federal Section 8 Housing Assistance Payment contracts and 45 apartments are supported by the Massachusetts Rental Voucher Program (MRVP).
The Schochet Companies provided development consulting and its affiliate, Federal Management Co., Inc. is the property manager for King Pine. The contractor will be Keith Construction.
In addition to the financing for King Pine, MassHousing has provided 186 home mortgage loans in Orange totaling $10.1 million in financing.
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