MassHousing has closed on $22.5 million in financing to Beacon Communities LLC for the purchase, rehabilitation and preservation of affordability at the 156-unit Stratton Hill Park housing community in Worcester.
“This transaction is a great outcome for the residents of Stratton Hill Park and the city of Worcester,” Tim Sullivan, MassHousing executive director, said in a statement. “MassHousing, Beacon Communities and DHCD were committed to preserving and extending the affordability for the residents, while also allowing for major property renovations. Stratton Hill Park will continue to provide quality housing for residents with a range of incomes with a new workforce housing tier for working households.”
Beacon Communities plans an estimated $9.7 million in property renovation including, the creation of eight accessible apartments and common area accessibility improvements, and other upgrades. MassHousing provided a $9.8 million construction and permanent loan, a $10.2 million equity bridge loan, and $2.5 million.
The transaction also received approximately $3.5 million in financing from DHCD, $1.2 million from the Affordable Housing Trust Fund and approximately $15.1 from an allocation of state and federal Low-Income Housing Tax Credits.
Stratton Hill Park is located at 161 Mountain St. in Worcester and is comprised of 18 studio units, 82 one-bedroom apartments, 45 two-bedroom apartments and 11 three-bedroom apartments located in two mid-rise buildings and two townhouse buildings.
Of the 156 apartments, 16 will be for households earning at or below 30 percent of the Area Median Income ($25,700 for a family of four), 62 units will be for households earning at or below 60 percent AMI ($51,420 for a family of four), 50 units will be for working households with incomes between 61 percent and 80 percent AMI ($52,247 to $68,000 for a family of four) and 28 units will be rented at market rates.
MassHousing has financed 17 rental housing communities in Worcester with 3,297 total units and an original total loan amount of $204.3 million and provided mortgage financing to 2,979 homeowners with an original principal loan amount of $320.1 million.