The Massachusetts Housing Investment Corp. (MHIC) has closed on an $8.4 million low-income housing tax credit (LIHTC) investment for the preservation of affordable homes in Springfield’s Old Hill neighborhood.
St. James Commons is owned and is being rehabilitated by Springfield-based Paul L. Oldenburg of Valley Real Estate. The project involves two adjacent buildings in an area that has been identified by the city as a key economic development zone and has received over $13 million in infrastructure and beautification improvements over the past several years.
This project will preserve 42 rental apartments reserved for households earning no more than 60% of the area median income (AMI); nine units will be reserved for households at an income level less than 30% of the AMI. All units are subsidized under a Sec. 8 contract with the Department of Housing and Urban Development.
Last rehabilitated in 1982, St. James Commons is undergoing a substantial renovation, including new roofing, insulation, energy-efficient boilers and heating systems, kitchen and baths, windows, updated fire alarms systems, and other major improvements. The State Street property was found to have structure deficiencies, so the residents have been relocated to another property owned by Valley Real Estate while the building is being renovated.
Besides MHIC’s LIHTC investment, major financing sources include the Massachusetts Housing Partnership ($700,000); the state Department of Housing and Community Development ($849,051); and state historic tax credits ($1,274,000). The total development cost is $13.67 million.
The architect for St. James Commons is Studio One in Springfield; the development consultant is Tilman Lukas of MBL Housing and Development in Cambridge; and the contractor is N.L. Construction, a certified Woman-Owned Business and Disadvantaged Business Enterprise general contractor based in Ludlow. The project is scheduled for completion in June 2018.
