|HUD No. 12-23
September 20, 2012
HUD APPROVES $2 MILLION LOAN GUARANTEE TO TAUNTON
City to acquire property, remediate sites for Fairfax Gardens HOPE VI development
BOSTON - The U.S. Department of Housing and Urban Development today announced that it is approving a $2 million loan guarantee to the City of Taunton, through the Taunton Housing Authority, to acquire property and assist with the demolition, clearance, and site preparation of the Taunton Housing Authority's Fairfax Gardens HOPE VI project development (See below for complete project description).
"HUD is proud to make an investment in Taunton that will deliver affordable housing and create jobs," said HUD New England Regional Administrator Barbara Fields. "Fairfax Gardens is another big step forward in building a better Taunton."
HUD's Section 108 Loan Guarantee Assistance Program enables local governments to borrow money at reduced interest rates to promote economic development, stimulate job growth and improve public facilities. Such public investment is often needed to inspire private contributions; to provide seed money; or to simply boost the confidence private firms and individuals may require to invest in distressed areas.
Taunton's HOPE VI Public Housing redevelopment project involves demolishing the existing 150 units at Fairfax Gardens complex and replacing it with 160 new, mixed income housing units. This redevelopment project will be carried out simultaneously in two phases on non-contiguous sites. Phase I will be developed on the existing Fairfax Gardens site and Phase II will be developed on a vacant parcel in downtown Taunton, one mile from Fairfax Gardens.
In addition, as part of the overall HOPE VI project, a Loan to Purchaser program will be created to provide 30 soft second mortgages to assist first-time homebuyers who are below 80 percent of area median income purchase existing homes. This will be funded through the HOME program, HUD's largest block grant program to create affordable housing for low-income households.
The City's application to HUD indicates that at least 51 percent of the new housing units created will be occupied by low-and moderate-income households.
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing asa platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.
City of Taunton Section 108 Loan Guarantee: $2,000,000
BEDI Award: $1,000,000
Borrower: City of Taunton, Massachusetts, through the Taunton Housing Authority, as the Subrecipient
Developing Entity/Partner: Trinity Taunton Nine, LP and Trinity Taunton Four, LP (Developing entities are wholly owned by Trinity Financial, Inc.)
Project Description: The proposed HOPE VI Public Housing redevelopment project involves demolishing the existing 150 units, Fairfax Gardens (Fairfax) public housing complex and replacing it with 160 new, mixed income housing units. This redevelopment project will be carried out simultaneously in two phases on non-contiguous sites. Phase I will be developed on the existing Fairfax Garden site (on-site component) and Phase II will be developed on Parcel 6A (the off-site component).
In addition, as part of the overall HOPE VI project, a HOME-funded Loan to Purchaser program will be created to provide 30 soft second mortgages to assist first-time homebuyers who are below 80% of area median income purchase existing homes.
Phase I redevelopment will initially be the demolition and removal of the existing, Fairfax Garden, a 150 unit barrack-style residential structure, which was built in 1951 on a 44-acre site, and site preparation, including the installation of sidewalks, a pedestrian and bike trail, streets and parking areas. The new development on this site will be the construction of 88 "green" mixed-income rental units. These replacement units will range from one to five bedrooms and will include 59 public housing/low income tax credit (LIHTC) units, 19 project based Section 8/Low Income Housing Tax Credit (LIHTC) units, and 10 market rate units. In addition, an existing community center for the new residential development will be renovated and expanded.
The Taunton Housing Authority (THA) owns the Fairfax Gardens site and will sell the site to THA Fairfax Inc., a non-profit affiliate and subrecipient of the Housing Authority. THA will contract with Taunton Sitework, Inc. to carry out on site demolition and site preparation. THA Fairfax, Inc will lease the developable site to Trinity Taunton Nine, LP (the "Fairfax Developer") for 99 years. The Fairfax Developer will construct 88 units of mixed income rental housing, of which more than 51% will be occupied by low- and moderate-income households.
Phase II is located one mile from the Fairfax site on a 6.44 acre, vacant parcel (Parcel 6A) in downtown Taunton, adjacent to the Greater Attleboro/Taunton Regional Transit Authority (GATRA) bus terminal. Parcel 6A is a brownfield site, which has soil contamination from previous use as a railroad service and maintenance station. It will be remediated and prepared for the construction of 72 "green" replacement rental units as part of this HOPE VI housing redevelopment project. This component of the development includes construction of a 54-unit three-story building with community space on the ground floor and construction of 18 townhouses. This residential complex will include 44 public housing LIHTC units, 10 LIHTC only units, and 18 project based Section 8 townhouse units.
The Taunton Redevelopment Authority (TRA) owns Parcel 6A and will sell 4.53 acres (to be known as Parcel 6A Housing) of the site to THA Fairfax Inc. THA will carry out on site environmental remediation and preparation. THA Fairfax Inc. will lease the property to Trinity Taunton Four, LP (the "6A Housing Developer") for 99 years. The 6A Housing Developer will construct 72 units of mixed income rental housing, which will be occupied by low- and moderate-income households. The TRA will sell the remaining 1.91 acres (to be known as the 6A GATRA parcel) to THA Mason Inc. a non-profit affiliate of the THA. THA will also remediate this contiguous parcel. Although housing will not be built on this parcel, the clean-up and restoration of this portion of the brownfield site are an integral part of providing 72 units of decent, safe and sanitary housing for this component of the HOPE VI housing development.
Use of Guaranteed Loan Proceeds: The Borrower will grant the Section 108 loan funds to the THA through a Subrecipient Agreement. The THA will grant $20 of this funding to THA Fairfax, Inc and THA Mason, Inc. through subrecipient agreements for acquisition of Fairfax Garden site, parcel 6A Housing, and 6A GATRA parcel site. The Housing Authority will use the remaining $1,999,980 to assist with demolition, clearance, and site preparation on the Fairfax Garden site and site preparation on parcel 6A Housing
Use of BEDI Funds: The Borrower will grant the BEDI funds to THA to assist with site preparation and environmental remediation on the 6A Housing and 6A GATRA parcels.