MassDevelopment Issues Tax-Exempt Bond for Affordable Housing in Springfield
January 14, 2019
FOR IMMEDIATE RELEASE
Kelsey Schiller, MassDevelopment, 617-330-2011 & 617-694-9695 (cell)
Thomas P. Kegelman, Home City Development, Inc., 413-310-3081
MassDevelopment has issued a $9,190,000 tax-exempt bond on behalf of BH Chestnut Crossing LLC, an affiliate of Home City Development, Inc. (HCDI), which will use bond proceeds to renovate and enlarge rental units at an apartment building at 275 Chestnut Street in Springfield. MassDevelopment also assisted the Massachusetts Department of Housing and Community Development with the approval of federal low-income housing tax credits, which will provide $5.2 million in equity for the project. TD Bank purchased the bond.
HCDI plans to convert the building’s 104 units into 101 larger single-occupancy units, all of which will contain bathrooms and kitchenettes, and make needed energy efficiency upgrades. Planned renovations also include the addition of a new community space and private office space where residents can access services and support. More than three-quarters of the units will be rented to households earning between 30 to 60 percent of the area median income; the remaining units will have no income restriction.
“As Massachusetts’ Gateway Cities evolve and progress, it’s more important than ever to ensure an adequate supply of housing for individuals of all income levels,” said MassDevelopment President and CEO Lauren Liss. “MassDevelopment is proud to support Home City Development, Inc. as it preserves more than 100 homes near the heart of downtown Springfield.”
Home City Development, Inc. was founded as Better Homes Inc. in 1968 by the Springfield Regional Chamber, and is a multi-service, nonprofit housing organization that develops and owns low-income multi-family and single room occupancy rental properties in Hampden and Hampshire counties. Over the years, HCDI has helped to develop thousands of housing units in the Springfield area. Just this past year, HCDI completed renovations of 136 apartments in 59 buildings in the Mason Square neighborhood. In 2016, HCDI completed restoration of four properties in Springfield’s South End, consisting of 47 units - many of which were heavily damaged in the 2011 tornado - and earning multiple awards for excellence. HDCI’s Resident Engagement Program assists its residents by providing access to supportive services such as fuel assistance, mediation, case management, and programs for children and families.
“I want to express my appreciation for all who have worked with us for over four years to bring this project to fruition, helping provide affordable, quality housing to the most vulnerable among us,” said Home City Development, Inc. Executive Director Tom Kegelman. “This wouldn’t be possible without the generous support provided by MassDevelopment, the Massachusetts Department of Housing and Community Development, the City of Springfield, including the Mayor, the City Council, the Department of Housing, and the Building Department, the wonderful folks who reside at 275 Chestnut, the YMCA, Senators Welch and Lesser, Representatives Gonzalez and Williams, and our team of consultants, property managers, contractors, bankers, lawyers, and architects.”
MassDevelopment, the state’s finance and development agency, works with businesses, nonprofits, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2018, MassDevelopment financed or managed 384 projects generating investment of more than $4.1 billion in the Massachusetts economy. These projects are estimated to create or support 10,994 jobs and build or rehabilitate 830 housing units.