Heritage Apartments in Malden to be Rehabilitated and Remain Affordable for Next 40 Years

BOSTON – November 8, 2005 – MassHousing’s Board of Directors voted today to commit $10.8 million in financing to preserve affordability for low-income seniors at Heritage Apartments in Malden.

"Heritage Apartments has been a very important affordable housing resource for low-income seniors in Malden for many years," said MassHousing Executive Director Thomas R. Gleason. "With this loan commitment we will ensure that Heritage Apartments remains affordable and that the building will receive the necessary upgrades and improvements to meet the changing needs of its residents."

In exchange for the $10.8 million in financing, the owner, First Church in Malden Home’s, Inc. will agree to extend affordability until 2046, renew the development’s Section 8 contracts and maintain 100% of the units as affordable for households earning no more than 80% of the area median income, which is $52,950 for a family of two in Malden. In addition, 86% (152) of the units will be affordable to households earning no more than 60% of the area median income, which is $39,720 for a family of two in Malden.

"We would like to take this opportunity to thank everyone involved for their ongoing support of our preservation effort to redevelop the Heritage Apartments," said Stephen Frazier, Executive Director of First Church in Malden Home's Inc. "MassHousing's Financing of this project will allow the Heritage Apartments to continue to provide quality affordable elderly housing to the City of Malden and its residents well into the future."

Located at 195 Pleasant St. in Malden, Heritage Apartments was constructed in 1972 with 209 units for low-income elderly individuals and families. The original unit mix included 96 studio units, 108 one-bedroom units, and one two-bedroom unit for an on-site staff person. When the planned rehabilitation is complete, 96 small studio apartments will have been converted into 64 one-bedroom units to better meet the needs of the residents. The planned unit mix will include 32 studio units and 144 one-bedroom apartments in addition to the one two-bedroom unit, for a total of 176 units.

The rehabilitation will also include structural repairs to the balconies and the replacement of railings. Other improvements will include the replacement of the old heating system with a new energy-efficient model; the installation of new energy-efficient windows and sliding glass doors, and EnergyStar-rated refrigerators and stoves. New plumbing fixtures that reduce water usage and costs will be installed along with new energy-efficient lighting to help reduce electric costs. Also, the rehabilitation work will incorporate ADA/504 accessibility requirements for five percent of the units and all common areas.

In addition to the financing from MassHousing, the developer has requested the use of Low-Income Housing Tax Credits. The sale of these tax credits is expected to raise an additional $6.5 million for the project.

The developer of Heritage Apartments is First Church in Malden Homes, Inc. The architect is Bergmeyer and Associates, Inc. The contractor and management agent is Peabody Properties, Inc.

About MassHousing
The Massachusetts Housing Finance Agency, now doing business as MassHousing, is the leading provider of affordable housing in Massachusetts. Since 1970, MassHousing has provided more than $8.7 billion in financing for more than 80,000 units of mixed-income rental housing and over 43,000 mortgage loans for first-time home buyers. For more information, visit the MassHousing website at www.masshousing.com.

Massachusetts Housing Finance Agency By: Eric Gedstad Eric Berman 2005-11-08

Press Contact: Peabody Properties, Inc. Tel: 781-794-1000