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Affordable Housing Preserved
for Senior Citizens in East Boston
All 87 apartments will
remain affordable for low-income seniors as a result of $8.3 million
MassHousing loan closing
BOSTON — April 7, 2014 — Affordability has been
preserved and extended for low-income senior citizens living at the
87-unit Victory Gardens in East Boston as a result of an $8.3
million MassHousing loan closing.
Victory Gardens is owned by Victory Gardens Associates, an affiliate
of Peabody Properties Inc. As a condition of the financing, the
owner will seek to extend the federal Section 8 Housing Assistance
Payment (HAP) contract and the affordability on all 87 apartments
when the current HAP contract expires in July 2019.
Victory Gardens was refinanced through MassHousing's Section 8
Proactive Preservation Program, which seeks to extend affordability
at MassHousing-financed developments where MassHousing mortgages are
due to mature and Section 8 HAP contracts are due to expire. The
original MassHousing loan to Victory Gardens will mature in July
2019.
"Affordable housing is a major concern for our
senior citizens and this loan closing will extend affordability for
the
residents at Victory Gardens for many years to come," said
MassHousing Executive Director Thomas R. Gleason.
"Peabody Properties has done a very good job
maintaining and managing Victory Gardens for its residents and we
are pleased to be partnering with them on this transaction."
Of the 87 apartments, 83 are one-bedroom units
and 4 are two-bedroom units located in a four-story building built
in 1979 at 54 Orleans St. in East Boston.
As part of the new financing, a number of renovations are planned
for the property including 504/ADA upgrades to common areas,
refurbishment of common areas, boiler and emergency generator
upgrades and roof and window replacement.
"The refinancing of Victory Gardens was achieved through the
collaborative efforts of all parties involved," said Peabody
Properties Chief Financial Officer Guy Corricelli. "We extend our
appreciation to MassHousing and their commitment and cooperation
will ensure the preservation of this important affordable housing
community for years to come."
About the MassHousing Section 8 Proactive Preservation Program
The Section 8 Proactive Preservation Program targets a group of
affordable rental developments that were originally financed by
MassHousing and are eligible to convert to market rates when those
mortgages mature. Each of these developments receives a subsidy from
HUD that is used to help pay the tenants' rents each month. However,
if the mortgage is paid off, there are no more affordability
restrictions or any incentives from HUD to keep the properties
affordable unless the owner agrees to renew the Section 8 contract.
Through this program, MassHousing now provides those incentives.
Affordable Housing Preserved for Senior Citizens in East Boston
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 $16 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.
About Peabody Properties, Inc.
Headquartered in Braintree, Peabody Properties, is a full-service
real-estate firm that manages in excess of 10,000 units of housing,
primarily in New England, with a divisional office located in
Florida. An award-winning privately held corporation, Peabody
Properties was incorporated in 1976 and is under the direction of
Karen Fish-Will and Melissa Fish-Crane. In 1995, Peabody Properties
recognized its long-term commitment to Resident Services as a unique
area of expertise within the field of property management and
established a new and separate entity. Peabody Resident Services,
Inc. is dedicated solely to the development of support services and
programs for residents of affordable housing. Peabody Properties is
designated as a Woman Business Enterprise (WBE) and is certified by
the Massachusetts State Office of Minority and Women Business
Assistance (SOMWBA). For more information please visit
www.peabodyproperties.com.
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