BOSTON – April 9, 2020 – MassHousing has surpassed $1 billion in lending through the Multifamily Accelerated Processing (MAP) program, preserving the affordability of 43 affordable housing communities since 2015 and extending affordability protections on more than 7,400 rental housing units for lower-income Massachusetts residents. Since MassHousing began executing MAP transactions, the Agency has consistently ranked among the nation’s larger MAP lenders and has built the largest MAP lending program of any state housing finance agency.
MassHousing offers the MAP loan program – solely or with a joint venture partner – to the owners of rental housing in Massachusetts through the U.S. Department of Housing and Urban Development (HUD). HUD provides expedited Federal Housing Administration (FHA) insurance approvals through the MAP program, which allows for a faster review process and lower interest rates.
MassHousing’s use of the MAP program allows the Agency to partner with affordable housing developers to preserve affordable housing by utilizing taxable mortgages that offer competitive interest rates. This proactive preservation strategy enables the Agency to preserve more affordable homes than would otherwise be possible, while conserving limited public resources, such as tax-exempt debt and Low Income Housing Tax Credits. The average interest rate for the Agency’s 43 MAP transactions closed to date was 3.58 percent.
"The true measure of success for our MAP lending program is the more than 7,400 lower-income senior citizens and families across Massachusetts who have an affordable home where they can live and prosper," said MassHousing Executive Director Chrystal Kornegay. "The MAP platform allows multifamily owners the opportunity to proactively refinance, preserve and renovate their properties at attractive interest rates that have put these developments on sound financial footing and allowed for the extension of affordability for many years to come. MAP lending has been a key tool helping MassHousing deliver on our mission of providing affordable housing to residents in need."
The Agency’s most recent MAP transaction, a $42.7 million refinancing and preservation of affordability at the 319-unit Melville Towers in New Bedford with joint venture partner Rockport Mortgage Corporation, resulted in MassHousing surpassing $1 billion in financing since becoming a MAP lender in 2015. Melville Towers is owned by the non-profit Affordable Housing and Services Collaborative, Inc.
Despite MassHousing being statutorily limited to lending only in Massachusetts, the Agency has been among the top 30 HUD lenders nationally since 2015 in both the number of loans transacted, and the total amount of financing provided. In HUD fiscal year 2019, MassHousing was ranked 12th for the number of loans produced nationally and 24th in the amount of financing provided.
"MassHousing’s success in utilizing the MAP platform to preserve thousands of affordable homes is a testament to the collaboration of our joint venture lenders and developer customers," said Mark Teden, MassHousing’s Vice President of Multifamily Programs. "We thank them for their work to help house lower-income seniors and families, and for their partnership in helping MassHousing reach this important milestone of $1 billion in cumulative MAP lending."
MassHousing executes MAP transactions both as a solo lender, and in partnership with CBRE and Rockport Mortgage Corporation. For each MAP transaction MassHousing issues a Ginnie Mae Mortgage Backed Security (MBS), which has consistently provided the multifamily mortgage industry its most competitive long term, taxable interest rates.
With each MAP/Ginnie Mae loan, MassHousing continues as the mortgagee of record and becomes a Ginnie Mae servicer. This ensures affordability, as each completed transaction will require the property owner to rent at least 20 percent of the units to those earning less than 80 percent of the area median income. Affordability at many properties could be at risk were MassHousing unable to offer this product, as owners could refinance with other lenders who do not require affordability restrictions.
The combination of FHA insurance and a Ginnie Mae guarantee enables borrowers to access mortgage financing with lower interest rates and make extensive property renovations, while preserving and extending affordability for thousands of low-income senior citizens and families.
"We're extremely honored to have been chosen by MassHousing as a joint-venture partner since the program’s inception in 2015," said Dan Lyons, President of Rockport Mortgage Corporation. "As a Massachusetts-based company, Rockport Mortgage is extremely proud of the work we’ve been able to accomplish alongside MassHousing and our development partners under this state-wide program. The fact that we’ve collectively assisted in the preservation of over 7,400 housing units is especially gratifying."
"CBRE is proud to be a MAP/Ginnie Mae Joint-Venture partner with MassHousing since 2015," said Stephanie McFadden, the President and Managing Director of CBRE HMF, Inc., CBRE's FHA multifamily lending platform. "Preserving affordable housing is core to our FHA lending business and working with MassHousing contributes to this goal in a very important way. We look forward to working together to maintain the affordable housing stock in the state in the coming years."
MassHousing’s MAP/Ginnie Mae Joint Venture program has preserved 7,402 units of housing across the Commonwealth in 26 cities and towns since 2015 and has been used by 25 different property owners. Peabody Properties, Inc. has completed nine MAP transactions, the most of any rental property owner in Massachusetts.
"Now more than ever, the importance of stable housing is vital, and serves as the foundation for almost every facet of a person’s life," said Melissa Fish-Crane, Principal and COO of Peabody Properties. "We are proud of our long-standing association with MassHousing, and grateful for these programs that help to keep housing secure for so many."
About MassHousing
MassHousing (The Massachusetts Housing Finance Agency) is an independent, quasi-public agency created in 1966 and charged with providing financing for affordable housing in Massachusetts. The Agency raises capital by selling bonds and lends the proceeds to low- and moderate-income homebuyers and homeowners, and to developers who build or preserve affordable and/or mixed-income rental housing. MassHousing does not use taxpayer dollars to sustain its operations, although it administers some publicly funded programs on behalf of the Commonwealth. Since its inception, MassHousing has provided more than $24.3 billion for affordable housing. For more information, follow us on Twitter, Facebook and LinkedIn.
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