MA's Momentum Fund Getting Put To Use In New Rental Project

MILTON, MA — A new funding tool under Massachusetts' Affordable Homes Act is being put to use in East Milton. Officials say it's a major step forward in the state's quest for an improved housing climate.

The residences at East Milton represent the latest milestone in the implementation of the Healey-Driscoll Administration’s Affordable Homes Act.

The 92-unit mixed-income rental community, developed by Joseph J. Corcoran Company and Falconi Properties, is the first project to receive public equity investment through the Administration's Momentum Fund, and the first project to proceed to construction, officials said.

"This development represents a critical step forward in our mission to tackle the housing shortage and create more reasonably-priced homes for residents across Massachusetts," said Governor Maura Healey.

"By partnering with local developers and leveraging innovative tools like the Momentum Fund, we are making a real impact for individuals and families who need more affordable housing options. The Residences at East Milton is a great example of how we are delivering on our promise to lower costs for Massachusetts residents."

The Residences at East Milton will create a total of 92 new mixed-income rental homes, including 13 studio residences, 39 1-bedroom residences, 30 2-bedroom residences and 10 3-bedroom residences.

Twenty-three of the new rental homes will be deed-restricted as affordable and rented to residents earning up to 80 percent of the area median income, while the remaining units will be rented at market rates.

The Momentum Fund was created under the Affordable Homes Act as a new tool in the state's housing toolkit to accelerate the production of housing – especially middle-income units – without relying on typical grant and subsidy resources.

The Momentum Fund seeks to "leverage low-cost public capital with the expertise of private developers and incentivize already permitted and much needed housing projects to commence construction," officials said.

Put simply, by leveraging the new financing tool, more homes can be built sooner, and help provide much-needed units for families, seniors and young adults.

MassHousing aims to support the creation of more than 1,000 new units of multifamily housing with $50 million of state investment capital and is evaluating how to further expand this goal with co-investment partnerships.

As for what the project means for Milton, The Residences at East Milton will advance the revitalization of East Milton Square by creating 92 new mixed-income rental homes on the site of a formerly underutilized commercial property.

The $52 million development project is utilizing $5 million in Momentum Fund equity, as well as $29.8 million in permanent mortgage financing from Freddie Mac, Berkadia and MassHousing, officials said.

Momentum Equity and MassHousing’s mortgage financing partnership with Berkadia and Freddie Mac were designed to lower the financing costs faced by housing developers and mobilize private investment in housing production, allowing new housing to proceed to construction in a higher-cost environment, officials said.