LYNN — $12.4 million in a refinancing loan from MassHousing will allow St. Mary’s Plaza, a 99-unit senior affordable housing complex on Pleasant Street, to remain affordable to senior residents for another 25 years.
St. Mary’s Plaza was refinanced through MassHousing’s Multifamily Accelerated Processing (MAP) and Ginnie Mae Joint Venture Initiative.
Approximately $1.4 million of the funds — nearly half the budget of the $3.5 million renovation project—will be allocated toward property improvements including new roofing, new appliances, sewer and water line repairs, and snow guard replacements.
In an interview, President of the Board of Directors at St. Mary’s Plaza Edward Calnan said that the financing would fund a new roof at the site’s former school building, and the construction of 99 kitchens — one for each of the building’s units.
Future renovations, Calnan said, will include new railings and balconies for the units, along with air conditioning and new sliding patio doors.
“The residents’ rents will stay the same despite all the improvement. Costs and quality of life certainly improved with all the innovations,” Calnan said. “We’ve heard from a number of the residents that are very excited about the improvements that have been made already.”
The building’s renovation, Calnan said, has been underway for 42 years. He said that the MassHousing funding will allow St. Mary’s to pay off its current mortgage and apply for a new one at a lower rate.
St. Mary’s Plaza, Inc., has executed a new 20-year Department of Housing and Urban Development (HUD) Section 8 Housing Assistance Payment contract for 98 of the 99 apartments at St. Mary’s Plaza.
The new contract will include five years remaining on the previous contract, for an overall 25-year extension of affordability.
“Affordable housing is a big issue not only in the City of Lynn but all over the state and probably over the country,” Calnan said. “One of the first things you have to do is if you have affordable housing to make sure it still exists. And that’s what we’ve done here, we’ve agreed to extend the affordability for the next 25 years for our residents.”
MassHousing Executive Director Chrystal Kornegay said the organization was glad to help refinance St. Mary’s Plaza.
“MassHousing is pleased that this transaction will not only extend affordability for the residents at St. Mary’s Plaza, but also enable substantial property renovations and upgrades for the well-being and comfort of the residents,” Kornegay said.
MassHousing offers the MAP/Ginnie Mae loan program to the owners of rental housing through HUD. The joint venture uses financing from the company Rockport Mortgage.
“The property will continue to serve as valuable affordable housing stock for the community of Lynn for many years to come,” said President of Rockport Mortgage Dan Lyons in a written statement.
