"Helping affordable rental developments such as the Simon C. Fireman Community to refinance its mortgage makes a lot of sense," notes MassHousing executive director Thomas R. Gleason. "By taking advantage of today's lower interest rates, we are able to lower the development's monthly loan payment, enabling them to use those savings to make building improvements and add the type of services that will really make a difference in the lives of their elderly residents."
The development involves a three-story building that includes 40 studio units, 119 one-bedroom units. Among its features are a coffee shop, beauty salon, convenience store and a computer learning center. The building was originally constructed in 1985 with financing from HUD under its Section 202 loan program, one of the oldest federal housing programs. The refinancing will provide for building improvements and expanded programs and services for the development's residents.
MassHousing is a quasi-public agency that raises its loan proceeds through the sale of tax-exempt bonds to investors. Simon C. Fireman Community, which was eligible to pre-pay its existing HUD 202 loan, will be receiving an interest rate reduction from 9.25% to a projected 5.95%, reducing its debt payment by over $130,000 per year, while freeing up approximately $1.1 million to pay for building changes and repairs and the creation of a resident services escrow.
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