$5.3 Million MassDevelopment Bond Finances Purchase, Renovation of Boston Affordable Housing
July 12, 2012
Kelsey Abbruzzese, MassDevelopment, 617-330-2086 & 617-448-9077 (cell)
MassDevelopment has issued a $5.3 million tax-exempt bond on behalf of Danube Apartments LLC, which will be used to buy and renovate 65 units of multi-family affordable rental housing in Boston's Dorchester and Jamaica Plain neighborhoods. Renovations will include new roofs, masonry repair, hallway refurbishment, window reglazing, kitchen upgrades, and heating and hot water system improvements. Boston Private Bank purchased the bond. The bond allocation also allowed the project to use federal low-income housing tax credits, generating about $2.67 million in equity.
“Tax-exempt bonds provide low rates for real estate projects and, for many affordable housing projects, access to much-needed federal housing tax credits,” said MassDevelopment President and CEO Marty Jones. “MassDevelopment is pleased to support projects like Danube Apartments, which help meet the affordable housing demand.”
The Abrams Development Company LLC developed the property in 1968. All units are affordable, with 21 one-bedroom units, 37 two-bedroom units, six three-bedroom units, and one five-bedroom unit.
“As long-time developers of affordable housing in and around Boston, we are pleased to enlist the support of MassDevelopment in preserving 65 units of low-income housing. The MassDevelopment team's responsiveness and streamlined process enabled us to close within 90 days of our decision to seek financing,” said Martha Abrams-Bell, President, The Abrams Development Company LLC.
MassDevelopment, the state’s finance and development agency, works with businesses, nonprofits, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2011, MassDevelopment financed or managed more than 300 projects generating investment of $3.8 billion in the Massachusetts economy. These projects are projected to create more than 10,000 jobs (2,547 permanent and 8,129 construction), and build or rehabilitate more than 1,000 residential units.