Clarendon Hill Towers

$50.9 million HUD Section 223(f) refinance for Clarendon Hill Towers, Somerville, MA

Clarendon Hill Towers is a 501-unit affordable development originally constructed in 1968 under HUD's 221(d)(3) BMR program and acquired in 1990 under the Title II Emergency Low-Income Housing Preservation Act of 1987 (“ELIHPA”).

The property receives assistance from a Section 8 HAP Preservation Contract that covers 347 of the 501 units at the subject property. Another 113 units are rented in accordance with the Plan of Action pursuant to Title II of the Housing and Community Act of 1987. The remaining 41 units are rented to tenants selected by the Somerville Housing Authority (SHA). In connection with the loan transaction, the Owner and HUD agreed to terminate the existing HAP Contract and execute a new Contract at or prior to closing.  The Renewal will be pursuant to Option 5 of the Section 8 Renewal Guide. Initial rents will be set based on the Owner’s new operating budget and will be processed without regard to market comparability.

Proceeds of the loan were used to to pay-off existing debt, complete repairs and fully fund replacement reserves.