Developer lands $400K loan for affordable housing project in Easthampton mill district

Kayakers on Lower Mill Pond near Ferry Street in Easthampton.

Kayakers on Lower Mill Pond near Ferry Street in Easthampton. GAZETTE FILE PHOTO


Staff Writer

Published: 04-18-2024 12:06 PM

EASTHAMPTON —  A Springfield nonprofit developer planning to construct One Industrial Lofts, a 96-unit affordable housing development at the former Hampton textile mill at 11-15 Ferry St., is receiving a $400,000 loan from a public-private community development finance institution.

The Community Economic Development Assistance Corp. this week announced the loan for Home City Development, Inc. as part of $19.16 million in early-stage funding being provided statewide to preserve and expand affordable housing during the second and third quarters of fiscal year 2024.

The Easthampton development will lead to the construction of 96 rental housing units, with 27 of these homes reserved for those at 30% of area median income, 64 of these homes for those at 60% of area median income and the remaining five homes rented at market rate.

Over the winter, the Easthampton City Council approved a $100,000 Community Preservation Act request to fund predevelopment costs for the development of the five-story building, with an estimated construction cost of $47.04 million.

Across the state, CEDAC is providing money for 26 projects, including in Worcester, Boston, Somerville and Salem, that will address a range of affordable housing needs, such as permanent supportive housing for formerly homeless individuals, new affordable homes and the preservation of existing subsidized housing.

“CEDAC has seen historic levels of demand for its predevelopment and acquisition financing, helping to support critical affordable housing projects that will benefit many low-income families and individuals,” CEDAC Executive Director Roger Herzog said in a statement. “We look forward to continuing to work alongside our nonprofit community partners as these projects move ahead into the next phase of development.”

Earlier, Peter Sarafino, director of real estate development at Home City, said construction on One Industrial Lofts could begin in 2025, with occupancy in 2026, if successful in getting state tax credits and other resources.

Home City has asked for an additional $200,000 in city CPA money in the next two fiscal years, bringing its total request to $500,000.

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