AFL-CIO Housing Investment Trust Provides $116 Million To Preserve Affordability, Carry Out Energy-Efficient Retrofits At Boston's Georgetowne Homes Rehabilitation Work at Aging Development to Generate 645 Union Construction Jobs
BOSTON, June 18, 2013 /PRNewswire-USNewswire/ -- The AFL-CIO Housing Investment Trust (HIT) today announced $116 million of pension capital funding to preserve affordability and perform energy-saving retrofits at Georgetowne Homes One and Two, a 967-unit residential development. The aging housing complex has served as a major source of affordable housing in Boston's Hyde Park neighborhood for more than 40 years. The project is expected to generate approximately 645 union construction jobs.
HIT financing includes $70.4 million for the 601-unit Georgetowne Homes One, constructed in 1969, and $45.5 million for the 366-unit Georgetowne Homes Two, built in 1972.
Senior Vice President Tom O'Malley, who heads the HIT's New England Regional Office, sees Georgetowne Homes as evidence of the HIT's ongoing commitment to work with MassHousing, the City of Boston, and local developers to create and preserve housing affordability for low-income residents.
"It is particularly gratifying to work on the increasingly important long-term preservation of housing, specifically Georgetowne Homes because it is the largest and most important preservation effort currently under way in the City of Boston and the Commonwealth as a whole," said O'Malley.
All of the property's 967 units are income-restricted, with 70% receiving Section 8 project-based rental assistance. As part of the HIT's refinancing, the owner, Beacon Communities, will extend the property's Section 8 contracts, and affordability will be preserved for another 45 years through a deed restriction.
Improvements, including new energy-efficient central heat and hot water systems, window and siding replacement, energy-efficient appliances, and insulation improvements, will provide significant energy and maintenance savings and make Georgetowne Homes a model of sustainable affordable housing.
With the Georgetowne investments, the HIT has now helped finance more than $1 billion of Boston housing development as part of its commitment to the city to address critical housing needs. These projects represent over 3,490 units of housing and nearly 4,700 union construction jobs.
"Decent affordable housing, family-supporting jobs, and community revitalization – that's a pretty good return on any investment," O'Malley said.
To help put together financing for Georgetowne Homes, the HIT purchased construction and permanent tax-exempt bonds and construction loan notes issued by MassHousing. Other financing sources include federal and state Low Income Housing Tax Credits, and other state and local subsidized debt.
About the HIT
The AFL-CIO Housing Investment Trust (HIT) is a fixed-income investment company registered with the Securities and Exchange Commission. It manages $4.7 billion in assets for more than 360 investors, which include union and public employee pension plans. The HIT invests primarily in government and agency insured and guaranteed multifamily mortgage-backed securities. The HIT is one of the earliest and most successful practitioners of socially responsible, economically targeted investing, with a nearly 50-year track record that demonstrates the added value derived from union-friendly investments. The investment objective of the HIT is to provide competitive returns for its investors and to promote the collateral objectives of constructing affordable housing and generating employment for union members in the construction trades and related industries. Since its inception, the HIT has invested over $6.8 billion to finance over 109,000 units of housing nationwide, generating over 71,000 union jobs. More information is available on the HIT's website, www.aflcio-hit.com.
Michael K. Frisby
SOURCE AFL-CIO Housing Investment Trust