Enterprise Community Investment and Trinity Financial Partner to Create 152 New Affordable Homes at Boston’s Franklin Hill Redevelopment
Boston – (June 17, 2008) – Enterprise Community Investment, Inc. (Enterprise) today announced its largest Low-Income Housing Tax Credit equity investment with a $45 million capital infusion for Phase II of Boston’s Franklin Hill redevelopment in Dorchester. Project partners include Trinity Financial, Inc. and the Boston Housing Authority (BHA), which are also developing the first phase of Franklin Hill recently completed in spring 2008. Franklin Hill Phase II will create an additional 152 newly constructed affordable rental units for a total of 266 affordable rental units at Franklin Hill.
“Enterprise is proud to enter the Boston affordable housing market to create a new and safe community for local families. Through this strategic investment, we are helping to provide quality affordable housing and services for families at a variety of income levels while spurring additional economic development,” said Raoul Moore, east region vice president, Tax Credit Syndication, Enterprise Community Investment, Inc. “Enterprise invests more than $1 billion per year to help finance affordable housing in communities like Dorchester nationwide.”
Phase II of the Franklin Hill development will be built as sections 2A and 2B, with federal Low-Income Housing Tax Credit and Solar Tax Credit equity investments syndicated through Enterprise of $36 million and $9 million, respectively. In addition to providing more than $12 million towards the Phase II project, BHA also facilitated the relocation and re-occupancy process and the provision of supportive services to Franklin Hill households. In addition to the city of Boston’s direct financial contribution to the project, the city also provided funds to pay for the new infrastructure throughout the Franklin Hill site.
“We are very excited about the positive impact that this redevelopment will have on Franklin Hill residents and surrounding Dorchester community,” said Kenan Bigby, project manager for Trinity Financial. “This is truly a collaborative effort between private institutions, local municipalities and federal and state agencies. Enterprise has been a great addition to the team, as none of this would be possible without their efforts.”
The total development cost for Franklin Hill 2A is $42 million, financed through a variety of sources including a $1.9 million loan from MassHousing; $1 million in Community
Development Block Grant (CDBG) funds from the city of Boston; $2.5 million in HOME and Affordable Housing Trust funds from the Massachusetts Department of Housing and Community Development; and $500,000 in Massachusetts Technology Collaborative funds administered through MassHousing.
Franklin Hill 2A includes 114 newly constructed apartments and townhouse units on four acres. The project will feature a five-story apartment building and eight townhouse buildings with a total of 57 two-bedroom, 33 three-bedroom, 19 one-bedroom, four four-bedroom and one five-bedroom unit. One hundred and ten (110) of the new units will be available to households at or below 60% of area median income. The remaining four units will be available to households between 60-80% of area median income to allow for the return and re-occupancy of the higher-income households from Franklin Hill. Seventy percent of the new units will be deeply subsidized with project-based or public housing subsidy.
“We welcome Enterprise’s financial commitment to Franklin Hill and the Boston Housing Authority and see this as the start of an ongoing relationship,” said BHA Administrator Sandra B. Henriquez. “Public-private partnerships such as this one further our joint missions to rebuild affordable communities.”
The $21.5 million Franklin Hill 2B redevelopment is financed in part by a $1.2 million loan from MassHousing; $2.5 million in Community Development Block Grant and National Housing Trust funds from the City of Boston; and $1.7 million in Housing Stabilization Fund and Affordable Housing Trust funds through the Massachusetts Department of Housing and Community Development.
The 1.8 acre Franklin Hill 2B site will feature 38 mixed-income family homes, including 30 three-bedroom, three two-bedroom, four four-bedroom and one five-bedroom unit arranged in eight townhouse buildings. All 38 of the units will be available to households at or below 60% of area median income. Seventy-six percent of the units will be deeply subsidized with project-based or public housing subsidy.
Enterprise Community Investment, Inc. is a leading provider of the development capital and expertise it takes to create decent, affordable homes and rebuild communities. Enterprise leverages low-income housing, new markets and historic rehabilitation tax credits, short and long-term debt, and development services to capitalize projects that make a catalytic difference in communities. Enterprise has privately raised over $9 billion to finance more than 240,000 affordable rental and for-sale homes, create vital communities and help transform the lives of low-income Americans, particularly those at the lowest end of the economic scale. Currently, Enterprise is investing in communities at a rate of $1 billion a year. Visit www.enterprisecommunity.com to learn more about Enterprise's efforts to build communities and opportunity.
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