MassHousing, the AFL-CIO Housing Investment Trust (HIT) and its subsidiary Building America CDE have agreed to provide $46.8m in capital for the construction of the 225 Centre Street development in Jamaica Plain, Boston, US.
Under the project, 103 new apartments as well as retail and commercial units will be built in the low-income Boston neighbourhood of Jamaica Plain and 35 rental units will be affordable to lower-income households.
The project will be located at the intersection of Centre Street and Columbus Avenue and will form the first phase of the $250m redevelopment of Jackson Square in the Jamaica Plain community.
The 225 Centre Street project is being developed at a cost of $53.2m by a joint venture between two Boston-based companies, Mitchell Properties and The Community Builders.
MassHousing executive director Thomas Gleason said: "This project is a major component in the redevelopment of Jackson Square."
"This mixed-income, mixed-use, transit-oriented housing community will be the foundation for redeveloping 11 acres of public and private land into more than a dozen buildings containing housing, retail and office space, as well as green and recreational areas for Jamaica Plain residents," Gleason said.
MassHousing has provided $31.4m in loans for the development, while the HIT and Building America CDE provided a combined $15.4m in financing.
HIT will purchase $9.9m in MassHousing taxable and tax-exempt bonds to help finance the residential component of the new building.
The project also includes 17,000ft² of first-floor commercial space and parking, which will be partially financed through $5.5m of New Markets Tax Credits provided by Building America.
MassHousing has also secured a $2.3m grant which will cover the cost of the parking and pedestrian improvements for the first-floor commercial and retail component.
The Jackson Square redevelopment has received a silver certified plan designation from the US Green Building Council as part of its LEED neighborhood development pilot programme.
Walsh Brothers is the contractor for 225 Centre Street; ADD is the architect while Peabody Management will serve as the property manager.
Construction began in December 2011 and is expected to be completed by April 2013.