The Schochet Companies News
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MassHousing financing preserves affordable housing in Orange
MassHousing, the state's affordable housing bank, today announced that it has committed $11.1 million to preserve 120 units of affordable elderly housing at King James Court Apartments and 114 affordable units at Pine Crest Apartments, two rental developments in Orange. Without these financing commitments from MassHousing, King James Court Apartments and Pine Crest Apartments were likely to convert to market rate.
BOSTON - November 6, 2002 - MassHousing, the state's affordable housing bank, today announced that it has committed $11.1 million to preserve 120 units of affordable elderly housing at King James Court Apartments and 114 affordable units at Pine Crest Apartments, two rental developments in Orange. Without these financing commitments from MassHousing, King James Court Apartments and Pine Crest Apartments were likely to convert to market rate.
"The preservation of affordable housing is vital if we are to overcome the state's housing crisis," said MassHousing Executive Director Thomas R. Gleason. "By preserving affordability at King James Court Apartments and Pine Crest Apartments, we are ensuring that these two developments will remain as an affordable housing resource in the Town of Orange."
"We are very pleased that with the help of MassHousing, these two projects will be acquired by a national non-profit, which will keep them affordable for the long term," said Jay R. Schochet, President of Schochet Associates, Inc., the developer for both projects. "The Agency's flexibility and creativity in reviewing and underwriting these projects have gone a long way toward protecting current and future residents of these developments in the western part of the state, where the need for affordable housing continues to be acute."
MassHousing made a $6.5 million loan commitment to King James Court RHF Housing, Inc., for the acquisition and rehabilitation of King James Court Apartments in Orange. The owner, King James Court RHF Housing, Inc., is a non-profit affiliate of Retirement Housing Foundation, Inc., a non-profit corporation based in California specializing in affordable housing.
In exchange for the below market rate financing, the owner will seek extensions to the existing Section 8 subsidies at the development and will preserve at least 75% of the units for households earning no more than 80% of the area median income (currently $41,700) for a minimum of 99 years.
Originally financed by MassHousing, King James Court Apartments were built circa 1980, and is a 120-unit, six-building elderly housing development located at 383 East River Street in Orange. The development is adjacent to Pine Crest Apartments. Rehabilitation will include replacement of all roofs, resurfacing of the parking area and minor modifications to ensure compliance with the Americans with Disabilities Act.
MassHousing has also made a loan commitment of $4.6 million for the acquisition and rehabilitation of Pine Crest Apartments in Orange. The commitment was made to Pine Crest RHF Housing, Inc., another non-profit affiliate of Retirement Housing Foundation, Inc. In exchange for the financing, the owner will keep Pine Crest Apartments affordable with at least 75% of units available to residents at or below 80% of the area median income for 99 years. One hundred percent of the units will be affordable to residents at or below 80% (currently $41,700) of the area median income during the initial 18 years of the loan.
Pine Crest Apartments were built in 1973 and originally financed by MassHousing. Pine Crest Apartments consists of 114 units in 11 buildings and one community building, located at 419 East River Street. Rehabilitation will include new vinyl siding, new sliding doors and window replacement in all 12 buildings. In addition, there will be roof replacement for three of the buildings, repair and resurfacing to roads and parking areas, and improvements necessary to provide handicapped accessibility for six units.
The developer for King James Court Apartments and Pine Crest Apartments is Schochet Associates, Inc. The contractor and the architect for both projects are Suffolk Construction Company and The Architectural Team, respectively. The management company is Foundation Management Company, Inc., which will subcontract to Federal Management Co., Inc., an affiliate of Schochet Associates, Inc.
The Massachusetts Housing Finance Agency, now doing business as MassHousing, is the leading provider of affordable housing in Massachusetts. Since 1970, MassHousing has generated $6 billion in loans to finance over 76,000 units of mixed-income rental housing and over 40,000 mortgages for affordable homeownership opportunities for first-time homebuyers. For more information, visit the MassHousing Web site at www.masshousing.com.