Rindge Tower Apartments in Cambridge, MA, will be renovated and affordable to residents who make less than the area’s median income for at least fifty years. In addition to preserving housing for residents making as little as 30% of area median income, the project includes a unique workforce housing component for residents earning up to 95% of the area median income. Typically, the income level to qualify for an affordable unit is capped at 80% AMI.
The transaction to make this $54.5 million project possible included $11 million in Low-Income Housing Tax Credit equity, $30.1 million debt financing, and a seller note from the owner.
165 of the project’s units have project-based Section 8 subsidy. According to MassHousing, the remaining 108 units are kept affordable by the Low-Income Housing Preservation and Resident Homeownership Agreement (LIHPRHA) Plan of Action. Twenty-five of these units are LIHTC eligible and 83 are “market rate,” up to 95% of area median income. In accordance with the Massachusetts’ LIHTC Qualified Allocation Plan, twenty-eight units (10% of total units) will be reserved for persons or families earning less than 30% of area median income.
“Cambridge is one of the most expensive housing markets in the country and working families can sometimes find it difficult to find an affordable place to live,’’ said MassHousing’s Timothy C. Sullivan. “We are pleased that this transaction preserves long-term affordable housing but also will provide important workforce housing at up to 95% AMI for almost a third of the units at Rindge Tower.’’
MassHousing provided $21.1 million in construction and permanent financing, a $7.5 million bridge loan and a $1.5 million supplemental subordinate loan. The Stratford Capital Group purchased the project’s tax credits, contributing $11 million in project financing.
The Rindge Tower Apartments were built in 1970 and are located in a 22-story building in the Alewife section of Cambridge. There is a mix of studio and one and two-bedroom apartments. Among the property improvements planned are major plumbing, electrical and mechanical work, kitchen and bathroom renovations, building exterior improvements, the installation of security cameras and the addition of 14 fully accessible units. The owner also intends to improve the overall energy efficiency of the building through window repair and sealing, recommissioning the building’s co-generation heating plant for maximum efficiency and using water pressure regulators to minimize waste.
“The financing from MassHousing and Stratford Capital Group will allow Just-A-Start to make improvements to benefit low-income tenants, increase energy efficiency, and protect affordable housing for Cambridge residents,” said Deborah Ruhe, Just-A-Start’s Executive Director. “We are proud to be able to provide housing for disabled individuals as well as working families who cannot afford the high cost of living in the city. Rindge Tower will now be preserved for long-term affordability, providing quality housing close to public transit and all of the neighborhood’s amenities.’’
