Biggest Affordable Housing Development in Boston for Individuals Moving Out of Homelessness
Barings, one of the world’s leading investment managers, announced that it has provided $53.5M in loan commitments to finance the development of 3368 Washington, an affordable multifamily housing development in Boston, MA. Upon completion, the nearly 1 acre development will cater to tenants with incomes ranging from 30% to 80% of Area Median Income (AMI). With 140 of its 220 units being set aside for those moving out of homelessness, the project represents the largest of its kind in Boston.
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The 5-story building will have a mix of studios, 1 and 2 bedroom apartments and a ground floor community space. Amenities will include 24/7 front desk security, on-site management, on-site supportive services staff, two outdoor plaza areas, multi-purpose room, fitness rooms, laundry rooms on residential floors, parking garage with electric vehicle charging stations, and bicycle repair and storage.
The Community Builders (TCB) and Pine Street Inn (PSI) are co-sponsors of the $110M development that has a multi-tiered capital structure, with Barings providing more than $53M in loan commitments.
The 3368 Washington Street project received a diverse combination of public and private philanthropic support to finance the building construction, property operations, and resident services. Major project funders include the Massachusetts Department of Housing and Community Development ($7 million of funding); Bank of America (more than $50 million in Low Income Housing Tax Credit (LIHTC) equity and over $60 million in construction financing); Barings/Massachusetts Mutual Life Insurance Company (more than $20 million in permanent financing, as well as over $33 million in tax-exempt bridge financing); the City of Boston Mayor’s Office of Housing (more than $16 million of funding); the Community Preservation Act ($1.5 million); the HYM Investment Group ($5 million of linkage funding); MassDevelopment (more than $50 million in 4% LIHTC bond financing); the Commonwealth ($1.5 million of State Low Income Housing Tax Credits which generate $9.8 million in equity); the Community and Economic Development Assistance Corporation (CEDAC) ( $4 million of Housing Innovation Funding), and $1 million from its Accelerating Investments in Healthy Communities Fund, courtesy of Boston Medical Center and the Robert Wood Johnson Foundation.
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The project was funded in part through the Boston’s Way Home Fund, started by the City of Boston to create permanent supportive housing for chronically homeless individuals. The Fund reached its $10 million goal two years ahead of schedule with lead donations from Bank of America, which helped launch the Fund, Liberty Mutual Insurance, Mass General Brigham, Massachusetts Mutual Life Insurance Company (MassMutual), and Suffolk Cares, each of which committed $1 million. In addition to these funds, Pine Street Inn’s overall housing expansion is being supported by a major grant from the Yawkey Foundation.
“Our long term commitment to finance affordable housing developments and help combat homelessness in communities across the nation is pivotal to our real estate lending and investment strategy,” said Daron Tubian, Managing Director and Head of Affordable Housing Investments at Barings. “Our partnership with TCB and PSI, among all the other capital partners of this important housing project in Boston, is something that we will continue to expand on and leverage for other similar developments that do so much good for the City and its residents.”
“We are providing rental housing that working families can afford and supportive housing many individuals need, steps away from public transit in the heart of Jamaica Plain,” said Bart Mitchell, president, and CEO of The Community Builders. “We look forward to working with the community and our project partners to make this development a vibrant platform for educational and economic opportunity, where every resident can thrive. We are proud to make this development a model for creating permanent supportive housing at scale, with long-term services and sustainable design. This new approach to affordable housing addresses Boston’s most pressing needs.”
“Housing with support services that will help people rebuild their lives is how we will end homelessness,” said Pine Street President and Executive Director Lyndia Downie. “Breaking ground, on what will be the largest housing development of its kind in Boston to date brings us one step closer to reaching the goal of ending homelessness. This could not come at a more critical time, as we grapple with a pandemic and housing crisis in the city. We look forward to housing 140 of Boston’s most vulnerable individuals and providing them with the wraparound services they need to thrive. We are so grateful to the Jamaica Plain community who voiced such strong support for those who will be moving into this building.”
“Bank of America Community Development Banking is pleased to provide more than $110 million to help finance the construction of much-needed affordable housing in Boston,” said Mary Thompson, Senior Vice President for Community Development Banking at Bank of America. “The 3368 Washington Street development and the Pine Street Inn and The Community Builders partnership is a great example of the impact we can make to help the most vulnerable in our communities and demonstrates our continued commitment to support the communities where we work and live. We were happy to work with Barings on this important project.”
Consistent with Barings’ commitment to social impact, the property will be managed by TCB, with programs and services for residents provided by TCB’s Community Life team, trained to connect families to healthcare, education, and employment. Additional supportive services for the 140 units for those moving out of homelessness will be provided by PSI.
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