Renovations to Brockton’s Chatham West completed early
Beacon Communities updates and preserves affordability of 570 apartments
BROCKTON – May 15, 2019 – Chatham West today celebrated the early completion of renovations to this 570-apartment affordable housing development, whose residents can also count on their homes remaining affordable for another 10 years thanks to a public-private partnership between MassHousing and owner Beacon Communities.
At a ribbon-cutting on the property, which was originally built in the early 1970s, MassHousing Executive Director Chrystal Kornegay praised both Beacon’s work and the joint financing arrangements that will keep the large development affordable.
“Today is a great day for the residents of Chatham West, who not only had their affordable rents preserved for the long term, but who are now enjoying the benefits of many improvements to the property,” said Kornegay. “Beacon Communities worked diligently to complete a complex financial transaction that ensured Chatham West’s tenants would still be able to live and prosper there. We commend Beacon for their commitment to preserving the affordability for the residents of Chatham West.”
Beacon Communities commenced the $13 million renovation last year. Substantial renovations to the building exteriors and apartment systems were completed two years ahead of schedule – in one year rather than three.
Beacon Communities CEO Dara Kovel hailed the financing partnership with MassHousing that provided $11.5 million in loans that made it possible to not only stabilize the property but also preserve the affordability of all 570 units for at least the next 10 years. She also thanked Walked & Dunlop and Fannie Mae, which provided new first mortgage debt in this complex transaction.
Kovel said the improvements were vital to the quality of life for residents of the development, and she congratulated the Beacon team on finding ways to speed up the work. It included replacing siding, windows, doors, roofs, boilers, and other major systems, in addition to updating the community center and on-site offices.
Brockton Mayor Bill Carpenter said, “We are very happy to support renovations to the Chatham West Apartments by committing $400,000 of Brockton’s Federal HOME funds to this important project. Beacon Communities has been a great partner to the City, providing an accessible, age-friendly and socially inclusive environment. It is our hope that these improvements have a lasting impact on the quality of life for these residents.”
The 1970s development is divided into the 300-unit Chatham West I and the 270-unit Chatham West II. They were originally funded by the federal Section 236 program and the Massachusetts Section 13A program respectively. Both programs have since ended. In 2013, Beacon was able to use HUD’s Rental Assistance Demonstration program (RAD) to help preserve affordability at Chatham West I, as properties funded by Section 236 qualified to receive new Section 8 contracts via RAD. However, the Section 13A program, which created housing throughout Massachusetts for people with very low incomes, was not given similar federal support. The development desperately needed new funding to renovate the aging buildings while preserving affordability for the 270 apartments at Chatham West II.
Through a partnership with MassHousing, Beacon Communities was able to stabilize this property and preserve the affordability of all 570 units for at least the next 10 years. At Chatham West II, $10 million in funding provided through a MassHousing Section 13A Tenant Protection Loan ensures that the 202 apartments that had been supported by 13A now have long-term affordability protections. The remaining 68 apartments at Chatham West II are supported by an existing Section 8 contract. In addition, MassHousing provided a $1.5 million Workforce Housing loan to Chatham West I to create another level affordability.
About Beacon Communities LLC – Beacon Communities LLC is a privately-owned real estate firm that develops, acquires, invests in, and manages a wide range of multi-family housing. Beacon’s portfolio includes affordable housing, market rate housing, and mixed income-housing. Beacon’s developments range from new construction, to historic adaptive reuse, to the renovation of existing housing. Beacon’s mission is to create well-designed, healthy homes that improve the quality of life of residents and enhance the neighborhoods in which they are located. For more information about Beacon Communities LLC please visit www.beaconcommunitiesllc.com.
About MassHousing –MassHousing (the Massachusetts Housing Finance Agency) is an independent, quasi-public agency created in 1966 and charged with providing financing for affordable housing in Massachusetts. The Agency raises capital by selling bonds and lends the proceeds to low- and moderate-income homebuyers and homeowners, and to developers who build or preserve affordable and/or mixed-income rental housing. MassHousing does not use taxpayer dollars to sustain its operations, although it administers some publicly funded programs on behalf of the Commonwealth. Since its inception, MassHousing has provided more than $22.9 billion for affordable housing. For more information, visit the MassHousing website at www.masshousing.com, follow us on Twitter @MassHousing, subscribe to our blog and Like us on Facebook.
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