Rehabilitation of Three Affordable Apartments on Shore Street
Location: 20 Shore Street, Falmouth MA 02540
Applicant: The Resource Inc. for Community and Economic Development (TRI)
Grant: $183,000 from Falmouth Affordable Housing Fund (FAHF)
Year/Authority: 2012, Board of Selectmen
The Resource, Inc. is a nonprofit, community development corporation founded in response to a consortium of town and private sector representatives who wished to more actively and innovatively contribute to housing and economic development in southeastern Massachusetts, Cape Cod, and the Islands. Incorporated in 1994, TRI has secured federal, state, and local funding for the rehabilitation, development, and management of affordable housing projects for fifteen Massachusetts communities.
In 2012 TRI identified a property through the Citizens’ Housing and Planning Association (CHAPA) Massachusetts Foreclosed Properties Initiative and was able to purchase this bank-owned property prior to its being listed on the market. The seller provided a discounted price predicated on a short acquisition timeline.
Through the Town of Falmouth, TRI applied to the Massachusetts Department of Housing and Community Development for approval as a Local Initiative Project (LIP) to rehabilitate the property to provide three rental apartment units for people whose incomes did not exceed 60 percent of area median income(AMI). LIP status ensured community support through the Board of Selectmen and the local housing authority. TRI then applied to the Falmouth Affordable Housing Fund (FAHF) for a loan of $183,000 to supplement its construction loan from the Federal Home Loan Bank under the Boston Affordable Housing Program, the Barnstable County HOME program, the Attorney General’s HOMECORP Program and Bank Five. The loan, with a term of thirty years and a zero interest rate, was reduced 3.35 percent each year ad totally forgiven on its thirtieth anniversary. Total project cost was $570,300, or $191,300 per unit.
The Falmouth Affordable Housing Fund (FAHF) was created in 2011 through special legislation at the instigation of the Community Preservation Committee (Chapter 29 of the Acts of 2011). It was designed to provide “last dollar” funds for the promotion, expansion, and retention of the affordable housing inventory in Falmouth. It was designed to provide funds for affordable housing projects without requiring developers to wait for November and April Town Meetings. Approval of project funding depends on recommendation by the Community Preservation Committee and approval by the Board of Selectmen, who serve as the Fund’s trustees. Total funding to date has amounted to $1.9 million and loans or grants have been awarded to the Shore Street Apartments, the Town of Falmouth for its 2013 Housing Demand Study, St. Marks Roads homes, Notantico Woods apartments, and Odd Fellows Hall apartments. Funding to date has been entirely from the Community Preservation Fund, but the FAHF welcomes contributions from any source.