National affordable housing developer and owner Vitus is preserving and renovating the 40-unit Fort Hill Gardens apartment community and the 42-unit Esperanza Trust Apartments in the Roxbury neighborhood of Boston.
The firm renewed the Section 8 Housing Assistance Payments that guarantee the affordability of both properties for 20 years. In doing so, Vitus is addressing the critical need for affordable housing in Roxbury while also enhancing two important apartment communities.
“At Vitus, we specialize in protecting existing affordable housing in communities with the greatest need—Roxbury is a perfect example. The area has seen a great deal of growth in recent years, but rising housing costs make it challenging for longtime residents to remain in the neighborhood they’ve called home for so many years,” says Brooke Shorett, development management director. “With this substantial renovation project, we are happy to offer them an affordable place to live for the foreseeable future.”
The two properties are located about a half mile from one another but are financed as one deal, according to Paige Miyazaki, development manager.
Esperanza and Fort Hill are particularly unique properties in the community. Fort Hill Gardens offers a rarity in the neighborhood—large units. The entire 40-unit townhome community is comprised of three-bedroom units to serve families.
The Esperanza Apartments is a historic building constructed in 1896 and surrounded by highly sought-after real estate. As the area becomes more popular and property prices surge, the preservation of both Fort Hill and Esperanza is crucial, Miyazaki says.
The project is Vitus’ first in the Boston area.
The $38 million project has a renovation budget of approximately $100,000 per unit. The work includes remodeling the kitchens and bathrooms, repainting and updating living areas, and installing new doors and windows. Additionally, in the Esperanza Apartments, five units will be converted to become ADA (Americans with Disabilities Act) compliant. Both properties will also receive exterior improvements such as new roofing, curb and walkway replacement, masonry recoating, and a range of additional site repairs. Environmentally friendly construction upgrades will include the addition of efficient lighting, plumbing, and windows as well as Energy Star-qualified appliances.
The properties, which had been owned by a family trust, were acquired with bridge financing from National Equity Fund. MassHousing provided debt split into two tranches—one tax-exempt and one taxable—and also worked with the state Department of Housing and Community Development on the awarding of low-income housing tax credits (LIHTCs). Raymond James Tax Credit Funds provided the LIHTC equity.
