BOSTON, MA - In keeping with its mission to preserve affordable housing, national not-for-profit The NHP Foundation announced that it has purchased Blue Mountain Apartments in Boston, Mass., for $56.2 million. The organization will provide improvements to the apartments, including kitchen and bathroom renovations, system upgrades, energy efficient boilers, new ventilation systems, and exterior repairs and restoration.
MassHousing is providing the NHP Foundation with $52.2 million in construction to permanent financing for the acquisition and rehabilitation of the 19 historic buildings that comprise the housing community, as well as $12.5 million in permanent financing for land acquisition.
“The partnership between NHPF and MassHousing allows us to provide affordable units in an increasingly expensive neighborhood, close to the center of the City with good access to public transportation,” said MassHousing Executive Director Chrystal Kornegay. “Preservation of affordable housing with amenities and access helps increase opportunities for families in the area to succeed and prosper.”
The transaction also involved $35.5 million in federal Low-Income Housing and Historic Tax Credit equity, $4.5 million in state Historic Tax Credit equity, and $3 million in anticipated operating revenue. PNC Bank acted as the low-income housing and historic tax credit investor for the transaction.
“PNC has been involved with Blue Mountain Apartments for several years, after a preservation fund, sponsored by PNC, acquired the property to generate an economic return and prevent the property from converting to market-rate housing,” said Todd Crow, executive vice president for PNC Real Estate. “Through our work with NHPF, we have been able to create an attractive investment for our investors and preserve long-term affordability for local residents, which is the ultimate goal of PNC’s product capability and affordable housing platform.”
Additional financing partners included BlueHub Capital (state historic tax credit bridge lender), Massachusetts Historical Commission (allocator of state historic credits), Massachusetts Department of Housing and Community Development (allocator of low income housing tax credits), and U.S. Department of Housing and Urban Development (rental assistance provider).
“Preservation of historically significant properties like Blue Mountain provide two-fold benefits,” said Mecky Adnani, senior vice president NHPF. “We preserve the vibrant, historic fabric of this Roxbury neighborhood and ensure that rental housing here stays affordable through at least 2045.”
The 217 units at the Blue Mountain Apartments are contained in 19 buildings on scattered sites around the Elm Hill Avenue neighborhood in Roxbury. The affordable housing community was originally built in the early 1900s and was last substantially rehabilitated in the 1980s. The buildings are included in the Massachusetts Historical Commission’s Historic Places inventory.
Renovations began this month and are expected to be completed in 18 months.