Tax Credit Advisor: "A New Model Deal" Salem Towers Article
Date Published: 04/06/2011
In a unique and challenging transaction supported by LISC, Salem Towers in Malden, Mass., New England’s first Section 202 property, will be rehabilitated and preserved as affordable housing by utilizing a number of “first” techniques. New authority provided in the 2009 Appropriations Act enabled the property to be granted prepayment approval and a new rental subsidy. This kind of refinancing would not have been possible for such “Old Law” Section 202 projects before the law was passed.
The oldest HUD Section 202 project in New England is being renovated and recapitalized in a creative $17 million joint venture tax credit transaction of many “firsts” that may be a model for preserving other “old law” 202 developments.
Local developer Marc Slotnick is partnering with nonprofit Beth Israel Senior Citizens Housing, Inc. to redevelop the 81-unit Salem Towers affordable apartment tower for seniors in this close-in Boston suburb of 58,000. The nonprofit, started by a nearby Jewish synagogue, built Salem Towers in 1964 and has managed it since. But by recent years, the property was in dire need of modernization, supportive services, and extra dollars to enable its senior residents to comfortably age in place and continue to enjoy affordable rents.
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Topic: --Housing
Type: Trade Article