Rockport Mortgage recently closed a $9.4 million HUD Section 223(f) refinance loan for Brownstone Gardens Apartments, a mixed-income development located in East Longmeadow, Massachusetts. The property consists of 132 units and was originally built in two phases during the years 1975 and 1985. It is designated for elderly and disabled tenants, with some units receiving rental assistance from both HUD and the Massachusetts Rental Voucher Program.
As part of this transaction, the owners reached an agreement with HUD to terminate their existing Project-Based Section 8 Contract and enter into a new contract that will extend affordability for these units until at least year 2051. The loan proceeds were utilized to pay off an existing construction loan as well as fund renovations such as adding elevators to all buildings. Additionally, five fully accessible units will be renovated.
This successful refinance not only stabilizes ownership but also secures long-term affordability through a fixed-interest rate loan with full amortization over the next thirty-five years. This is crucial in maintaining this valuable housing asset within our community.
