MassDevelopment Bond Helps Renovate, Maintain Affordability of Salem Point Apartments
July 31, 2014
FOR IMMEDIATE RELEASE
MassDevelopment has issued a $9.8 million bond on behalf of Salem Point II Limited Partnership to acquire, renovate, and preserve the Salem Point Apartments in Salem. Renovation plans for the 77-unit building include installing energy-efficient roofing, windows, flooring, water fixtures, and fire-alarm system; repairing balconies, emergency exits, and masonry; re-pointing exterior brick walls; replacing the boiler; and improving the HVAC system and common area. Upon completion, the Partnership will reserve the renovated apartments for households at or below 60 percent of the area median income. In addition to the bond financing, MassDevelopment assisted the Department of Housing and Community Development with approval of federal low-income housing tax credits, which provided approximately $5.1 million in equity for the project. The Agency also provided a $67,150 brownfields grant to North Shore CDC in 2012 to assess lead in the soil near 11 residential buildings in the Salem Point neighborhood. Eastern Bank purchased the bonds.
“Preserving affordable housing units is a crucial economic development element in the growth of the Gateway Cities,” said MassDevelopment President and CEO Marty Jones. “We are pleased to work with North Shore CDC and Eastern Bank to help maintain the quality and affordability of the Salem Point Apartments.”
Eastern Bank’s Community Development Lending Group supports the CDC’s effort to preserve affordable housing throughout the state, noted Eastern Bank's Gary Leach, Senior Vice President and Group Head. “We are proud to work with North Shore CDC to preserve this important piece of affordable housing in Salem.”
North Shore Community Development Coalition (North Shore CDC) acquired Salem Point Apartments in 1991. The apartment’s original developer built the brick buildings about 100 years ago to house employees of a nearby textile facility. Today, the complex consists of 48 two-bedroom and 29 three-bedroom affordable units.
“The Salem Point apartments renovation is a tremendous opportunity for the Point neighborhood’s housing stock that ensures long-term quality and affordability for our residents,” commented CEO of North Shore CDC Mickey Northcutt.
MassDevelopment, the state’s finance and development agency, works with businesses, nonprofits, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2013, MassDevelopment financed or managed 350 projects generating investment of more than $2.4 billion in the Massachusetts economy. These projects are projected to create more than 7,000 jobs and build or rehabilitate 800 residential units.