Patrick-Murray Administration Launches Musterfield Redevelopment through the Mixed Financing Initiative

Private investment leverages makeover of state-financed family public housing complex

FRAMINGHAM – Wednesday, October 21, 2009 – As part of the Patrick-Murray Administration’s Massachusetts Recovery Plan to secure the state’s economic future, Lieutenant Governor Timothy Murray today joined state and local officials to break ground for the comprehensive renovation of an aging family public housing complex in Framingham that will use an innovative mixed finance program initiated by the Administration to defray project costs by leveraging private investment dollars.

“This project represents a dynamic and innovative collaboration between the public and private sector to revitalize our communities," said Governor Deval Patrick. “By targeting resources in this way, we are not only assisting individuals and families in need, but lifting up those neighborhoods that need it the most.”

“Leveraging resources in this new and unique way not only blends public and private resources but also complements our ongoing efforts to create permanent affordable housing options for families,” said Lt. Governor Murray, chairman of the state’s Interagency Council for Housing and Homelessness. “By making permanent affordable housing a long term solution, we transition from dependence on the emergency shelter system and stabilize neighborhoods as we work to end family homelessness in Massachusetts.”

First built by the Framingham Housing Authority in 1954 to house veterans and their families, a newly renovated 110-unit Musterfield at Concord Place will have modern kitchens and baths, extensive exterior improvements and new energy-efficient systems that will make the building 25% more efficient than required by building code. 10 apartments will be reserved for families who are transitioning from homelessness into permanent housing.

The Massachusetts Department of Housing and Community Development (DHCD) launched the state’s mixed financing program in response to the Patrick-Murray Administration’s first-ever set-aside of bond volume cap. This program will allow the issuance of federal tax-exempt bonds and will include low-income housing tax credits to leverage private investment equity so to modernize and renovate state-financed public housing developments. With a $22 million investment of state public housing modernization dollars, Musterfield at Concord Place is able to receive a $35 million makeover through equity leveraged from Red Stone Capital Partners, bond financing from the quasi-public agency MassHousing and contributions from the Town of Framingham. It is one of the first public housing developments in Massachusetts to use this mixed finance mechanism.

“These much-needed renovations to Musterfield at Concord Place will provide a safer environment for our Framingham working families, children and elders who are residing there. This partnership is a wonderful example of how the state can leverage federal, private and other resources to help defray the cost of large projects such as this,” said Senator Karen E. Spilka.

"Housing investments such as these represent great economic opportunities for Metro West" said Representative Tom Sannicandro. "The Musterfield developments will not only create jobs and bolster economic activity, but help transition families into a better future."

“This project is a much needed shot in the arm for Framingham,” said Representative Pam Richardson. “This area is a gateway to our downtown and this project will go a long way towards improving the image of the neighborhood while continuing to provide affordable housing for those who need it most.”

"Reversing years of funding neglect by previous administrations, the Patrick-Murray Administration’s support for public housing has been exemplary. Their support of this mixed finance program is a wonderful example of that," said Undersecretary Tina Brooks from DHCD. "The Administration’s historic decision to set aside bond volume cap to leverage private investment for public housing modernization and redevelopment projects makes sense in the best of times, and even more so given today's economic challenges."