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By Nancy Carpenter
Marblehead, Massachusetts, seems to have it all. A prime coastal
location 30 minutes north of Boston.
A rich history, low crime rate, and incomes and home prices that
rank among the highest in the state.
Not so easy to find in Marblehead is affordable housing. The median
home price is $479,000; the median household income is $80,600.
With numbers like that, "it's very difficult for people with
average incomes to afford Marblehead, let alone those who earn less
than average," says Mary C. Helming, vice president and commercial
loan officer at member Beverly National Bank.
As in many areas of Massachusetts, high demand and short supply
have kept housing in Marblehead beyond the means of low- or moderate-income
households. Today, about four percent of the housing in Marblehead
is affordable for that segment of the population.
Massachusetts wants cities and towns to designate 10 percent of
their housing as affordable. Helping communities reach that goal
is the Chapter 40B law easing the permitting process on developments
in which 25 percent or more of the units will be sold or rented
at rates below market value.
Chapter 40B developments are slowly gaining momentum around the
state, and Marblehead is no exception. By the end of 2006, five
new two-bedroom condominiums in Marblehead will be sold as affordable.
The homes are among 20 under construction at The Reserve at Oliver
Pond on Humphrey Street.
Beverly National Bank helped Oliver Pond's developer finance its
construction through the Federal Home Loan Bank of Boston's New
England Fund (NEF). The NEF finances affordable housing for populations
earning no more than 140 percent of the median income for their
area. Funds can be used to buy, refinance, build, or renovate single-family
homes, cooperatives, condominiums, single-room or multi-family rental
housing, and first-time home-buyer programs.
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Reserve at Oliver Pond.
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Mixed-income developments such as Oliver Pond receive special consideration.
For this first-time user of the NEF, the process went "relatively
smoothly," says Ms. Helming. Construction on Oliver Pond began
late last year and is expected to wrap up this fall.
"We're very pleased to bring affordable housing into our lending
area," starting with its long-time customer Oliver Pond LLC,
she says. Beverly National provided $7.2 million in construction
financing for the project, including an advance of $1.8 million
through the NEF. The member sold $3.6 million of the advance to
Hoosac Bank in North Adams, but continues to service the loan and
maintain its business relationship with the borrower.
The 15 market-rate condos will fetch from $604,000 to $690,000 each.
The affordable units will be sold for about $156,000 to winners
of a lottery to be held this summer.
Oliver Pond's single building contains the condominiums, a community
room, lounge, exercise room, and a storage area for each unit. Plans
include underground parking for 25 vehicles and 17 outdoor parking
spaces.
The Marblehead project is "very desirable for retirees as well
as families looking for a starter home." And, with all but
three of the market-rate units spoken for by January, the success
of Oliver Pond is a given, Ms. Helming says.
The addition of five new affordable homes in Marblehead is a modest
increase, but one that "will definitely make a difference,"
she says.
For more information on NEF, visit www.fhlbboston.com/communitydevelopment/fundingprograms/nef/index.jsp.
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