LYNN — Lynn-based nonprofit Centerboard Inc. has been issued a $7 million bond from MassDevelopment to provide 46 units of temporary housing for homeless residents in several communities.
Centerboard Inc., which focuses on increasing economic opportunities for North Shore residents, will use the bond proceeds to buy, renovate and equip six properties.
“The challenges homeless individuals face today are more critical than ever,” said MassDevelopment President and CEO Lauren Liss. “MassDevelopment is proud to once again be a resource for Centerboard, Inc., as the organization develops housing for those in need and continues offering important services throughout the North Shore.”
The 30-year bond, purchased by Citizens Bank, will supplement past financing Centerboard received from MassDevelopment, which will allow the organization to refinance previously issued debt for nine additional properties that were purchased and renovated for the same purposes.
Altogether, the loans will support 15 properties, located in Beverly, Lynn, Peabody and Salem.
“We continue to be grateful (for) MassDevelopment’s commitment to Centerboard,” said Centerboard CEO Mark DeJoie. “This will allow us to continue to provide stability and improve the quality of life for many and combat issues surrounding homelessness in Essex County.”
DeJoie said the bond won’t allow Centerboard to create more housing for homeless residents in those four communities, but it will allow the organization to buy and rehabilitate properties they had been renting.
Instead of renting from landlords who could opt to raise their rents based on the market, as the property owners, Centerboard can now stabilize their costs and thus provide more stability for the homeless families they serve, DeJoie said.
For instance, if a landlord were to raise rent on a building or apartment, Centerboard would have to move a family to a more affordable living space, DeJoie said.
Part of the aim with purchasing properties is to allow families to remain in their housing for a longer period of time, and to provide a quicker turnaround for moving in new families after the unit is vacated, he said.
Under Centerboard’s temporary housing program, the organization covers the cost of rent and utilities for families and individuals for a seven- to nine-month period, but in exchange, those people must adhere to a housing plan, tailored to their individual situation, DeJoie said.
For example, individuals and families, who must qualify for the program through the state Department of Transitional Assistance, are required to look for permanent housing during that shelter period. Some plans call for qualifying individuals to maintain a job or receive job training during that time frame, DeJoie said.
But DeJoie said Centerboard cannot dictate the end result of the program, which is to help their clients secure permanent housing, as they recognize there is a shortage of housing and vouchers for low-income people.
“With the rents just going absolutely crazy, we needed to at least maintain costs,” said DeJoie. “Our board decided we needed to come up with a plan to stabilize the costs so we could predict it. We have a pretty good history of paying rent, (which is) why we got the bond from the bank.”
MassDevelopment has previously provided financing for numerous Centerboard facilities and projects. In April 2014, MassDevelopment provided a $1.1 million loan to help Centerboard buy and renovate its current headquarters at 16 City Hall Square In Lynn.
In November 2017, Centerboard crowdfunded $20,360 and received a $20,000 matching grant from MassDevelopment’s Commonwealth Places program for a project to illuminate High Rock Tower in Lynn.
And in August 2017, the economic development agency issued a $5.9 million tax-exempt bond to help Centerboard buy and renovate properties in Lynn, Chelsea, and Melrose to be used as group homes, and a fifth property to be used for supportive programming.
