Key financing has been arranged for Pennrose to redevelop Cape Cod Five Bank’s former operations center into affordable and workforce housing in Orleans, Massachusetts.
MassHousing announced it is providing $19.2 million for the project, which will bring new housing opportunities to Cape Cod.
Built in 1977, the building will be converted into 20 apartments, a management office, and community space for residents. Pennrose will also construct a new wing on the building that will contain 34 apartments as well as two four-unit townhouse-style buildings.
“Housing affordable to people who live and work on Cape Cod is in very high demand,” said MassHousing CEO Chrystal Kornegay. “MassHousing is excited to partner with Pennrose to repurpose this former commercial property in Orleans into 62 brand-new rental homes that will provide housing stability for its future residents as well as the opportunity to live and prosper on the Cape.”
MassHousing is supporting the effort with $15.4 million in tax credit equity bridge financing, $2.8 million in permanent financing, and $1 million from the agency’s Workforce Housing Initiative.
The project received approximately $13 million in equity through federal low-income housing tax credits allocated by the Massachusetts Executive Office of Housing and Livable Communities (EOHLC), approximately $2 million in direct support from EOHLC, $14.1 million in state tax credit loans from the Massachusetts Housing Investment Corp., $20.3 million in construction financing from Webster Bank, $2.5 million in local Community Preservation Committees (CPC) funds, $1.5 million in American Rescue Plan Act (ARPA) funds from Barnstable County, and $1 million in ARPA financing through the Affordable Housing Trust Fund, which MassHousing manages on behalf of EOHLC. Hudson Housing Capital is the tax credit syndicator, and Webster Bank and Santander Bank are the equity investors.
There will be 31 one-, 23 two-, and eight three-bedroom apartments. Nine units will be supported by project-based subsidies for households earning up to 30% of the area median income (AMI), 43 apartments will be restricted to households earning up to 60% of the AMI, and 10 will be workforce housing units for households earning up to 80% of the AMI. The AMI for Orleans is $149,300 for a household of four.
“The support from the town of Orleans was essential in making this project come together,” said Charlie Adams, regional vice president at Pennrose. “Their dedication to affordable housing and their contribution of $2 million in CPC funds was incredible. Equally impressive was how many neighboring communities—Brewster, Chatham, Eastham, Harwich, Truro, and Wellfleet were also willing to commit their CPC funds in addition to Barnstable County. We also can’t thank Cape Cod Five Bank enough for their vision in making their former site into affordable housing.”
Other partners include general contractor Dellbrook/JKS, architect The Architectural Team, landscape architect Crowley Cottrell, civil engineer Horsley Witten Group, and management agent Pennrose Management Co.
