First-Time Homebuyers Get A Lifeline In 2 MA Communities

MASSACHUSETTS — More than $11 million in financing has been provided by MassHousing this month for what they're calling "new homeownership opportunities" for moderate-income first-time homebuyers.

The money comes in the form of CommonWealth Builder financing in the communities of Amherst, which was provided $9.9 million from MassHousing, and Malden, which was provided $1.55 million.

In Amherst, Valley Community Development is developing the new homes in 15 duplex buildings in North Amherst, with 10 of the units restricted to homebuyers earning up to 80 percent of the Area Median Income (AMI) and 20 of the units restricted to homebuyers earning up to 100 percent of AMI.

MassHousing is supporting the project with $9.9 million in CommonWealth Builder funding. Greenfield Cooperative Bank is providing $4 million in construction financing and the Town of Amherst is providing $1.475 million in Community Preservation Act and Affordable Housing Trust Fund financing.

The development will be on Montague Road on land previously developed for commercial and industrial uses and currently has fields of vegetated land. The development will cluster the new duplex condominium buildings to maximize shared open space on the site.

Amherst Community Homes will create 18 new two-bedroom units and 12 three-bedroom units. All homes will be deed-restricted and affordable for first-time homebuyers earning between 80 percent and 100 percent of the area median income.

Homes are expected to sell at prices ranging from $162,900 to $267,000, well below the current average home sale price for the year of $543,455, according to data from The Warren Group.

"This project will turn an underutilized area in the town into 30 brand new homes for first-time homebuyers," said MassHousing CEO Chrystal Kornegay. "The people who purchase these homes will be able to set down roots in Amherst and begin building wealth, along with all the other benefits of homeownership."

Malden

MassHousing will also provide nearly $1.55 million in CommonWealth Builder financing for developing the 272 Cross St. property in Malden, offering five new condominiums for purchase by moderate-income, first-time homebuyers.

The Neighborhood Developers, Inc. (TND) will "substantially rehabilitate and create an addition to an existing vacant residential building at the site, constructing the new condos in a two-story building designed to include energy-efficient appliances, in-unit laundry, and basement storage areas," officials said.

Two of the units will be restricted to homebuyers earning up to 80 percent of the Area Median Income (AMI) and three of the units will be restricted to homebuyers earning up to 100 percent of AMI.

MassHousing is supporting the project with $1.55 million in CommonWealth Builder funding. East Cambridge Savings Bank is providing $1.6 million in construction financing and the City of Malden is providing $1.6 million in Affordable Housing Trust Fund and American Rescue Plan Act financing. Charlesbank Homes Foundation is providing $50,000 in grant funding.

"The redevelopment of 272-274 Cross St. offers first-time homebuyers a once-in-a-lifetime opportunity at affordable homeownership, while simultaneously helping the City deliver on its promise to create, preserve, and support income-restricted affordable homeownership opportunities," said Mayor Gary Christenson. "I'm grateful to TND and MassHousing for their partnership in transforming a previously unoccupied and vacant parcel, into five new affordable homeownership units for residents."

The redeveloped property will create two one-bedroom units and three two-bedroom units. The homes will be affordable for first-time homebuyers earning between 80 percent and 100 percent of the area median income.

The five homes are expected to sell at prices ranging from $240,370 to $352,749. The Warren Group data shows the current average home sale price in the city is nearly $700,000.

The site is less than a quarter mile from multiple MBTA bus stops and is approximately a mile away from the Malden Center MBTA transportation hub and Orange Line. It has also easy access to community amenities such as Malden City Hall, Lincoln Commons Playground, and Newman Park.

The City of Malden identified the site as a redevelopment priority as part of a broader planning effort in partnership with MassHousing's Neighborhood Hub program.