Kicking Off a Major Redevelopment: Curtis Apartments in Worcester, MA
The first phase of the redevelopment of a Worcester Housing Authority property.
In collaboration with the Worcester Housing Authority, Trinity Financial is spearheading the transformation of the Curtis Apartments, a 70-year-old, 372-unit complex. The initial phase will see the construction of 129 units across two buildings, replacing 90 old public housing units and adding 39 new affordable units priced at 60% and 80% of the area median income.
This project employs an innovative US Department of Housing and Urban Development (HUD) program called Faircloth-to-RAD. This program enables public housing authorities (PHAs) to create new federally assisted housing by merging the mixed-finance development process with the Rental Assistance Demonstration (RAD), paving the way for new affordable housing projects.
The groundbreaking ceremony for this ambitious project took place on May 21, 2024. Dara Histed, Nixon Peabody's Affordable Housing & Real Estate partner, noted, “This transaction required a great deal of collaboration among parties, all of whom are deeply committed to the expansion of affordable housing in our communities. We’re proud to be involved in this project and excited to see it get underway.”
Beyond navigating the Faircloth-to-RAD process, the project also involved the disposition and demolition of state public housing in Massachusetts. The financing package was complex, incorporating tax-exempt bonds, federal and state low-income housing tax credits (LIHTCs), a Bank of America construction loan, subordinate financing from the Executive Office of Housing and Livable Communities (EOHLC) and Building Futures Inc., as well as permanent and bridge loan financing from MassHousing through the HUD Risk Share program and the Middle-Income Housing program, among other funding sources. Massachusetts Housing Investment Corporation acted as the tax credit investor.
Notably, Curtis Apartments is the first project to seek and obtain a real estate tax exemption in the City of Worcester East Side Tax Increment Financing (TIF) Zone, highlighting the innovative financial strategies employed to bring this project to fruition.
For more information, contact:
Benjamin Hicks
President & Broker
Bridgemont Realty
617-529-0751
Ben@BridgemontRealty.com
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