MHIC and CLF Announce Financing for Northampton Residences through Healthy Neighborhoods Equity Fund II

Northampton Residences (Rendering by Höweler & Yoon Architecture)

Massachusetts Housing Investment Corporation (MHIC) and Conservation Law Foundation (CLF) are pleased to announce that their Healthy Neighborhoods Equity Fund (HNEF) II will finance Northampton Residences at 597-599 Northampton Street in the Lower Roxbury neighborhood of Boston. The proposed development will create 47 affordable homeownership condominiums aligned with Imagine Boston 2030’s goals, which call for enhancing the area with infrastructure improvements and investments in affordable housing.

“HNEF II was created to finance inclusive mixed-use developments near public transportation that offer retail, housing, and social services to support healthier communities. The Northampton Residences project is ideally situated to offer all these benefits, resulting in a significant positive impact in Lower Roxbury,” said Moddie Turay, president and CEO of MHIC. “Most importantly, affordable homeownership options are critical to closing the wealth gap for low-income communities, and especially for individuals and families of color.”

Northampton Residences will be located on a 9,586 lot on Northampton Street near the Massachusetts Avenue MBTA Orange Line station, and just off Columbus Avenue, adjacent to the Southwest Corridor, a 4.1-mile, linear park stretching from the Back Bay to Forest Hills. Its proximity to public transit and bike trails, the opportunity for affordable homeownership, access to healthy food and green space, and climate-resiliency, among other qualities, earned the project a “high impact” score of 69.80 out of 100 through an evaluation using CLF’s HealthScore tool.

“We know that metrics matter for neighborhood health,” said Virginia Foote, director of impact investment at CLF. “HealthScore is our research-based impact scorecard, which we use to assess the extent to which potential investments are likely to contribute to building healthy, equitable, energy-efficient, and climate-resilient neighborhoods.”

The project’s ground level will feature a pedestrian entrance off Northampton Street with a lobby and bike storage. The remaining floors will contain income-restricted homeownership units for first-time buyers in studio (16 available), one-bedroom (19 available), two-bedroom (7 available), and three-bedroom (5 available) options. Following the guidelines of co-investor Commonwealth Builder Program, homes prices are restricted affordable during the first 15 years, thereafter, first time buyers can sell their homes at fair market prices, enabling long term appreciation and wealth creation. The building will also feature a highly energy-efficient all-electric heating and cooling system with no fossil fuel usage, light colored roofing to reduce head island effect, an underground storm water management system, and low-emitting design materials to increase sustainability and overall building health and efficiency.

Northampton Residences homes will be available to households earning up to 100% of the Area Median Income (AMI). The proposed sales prices range from 49% to 63% of 2022 Q3 and Q4 comparable sales in the immediate neighborhood. HNEF II is providing a $4,633,560 equity investment to purchase the 90% investor member interest in the project. The developer, THR Acquisition, LLC, will hold the 10% managing member interest. THR is a joint venture between Transom Real Estate, LLC and Harbor Run Development, LLC. The project’s architect will be Dan Chen of Bargmann Hendrie + Archetype, Inc., and the project’s contractor will be Kaplan Construction.

Build Healthy Places Network Profiles HNEFII

Cambridge Savings Bank Invests $1 Million in Healthy Neighborhoods Equity Fund

Bank shows support for an initiative launched in 2017 to create high-impact, mixed-use, mixed-income projects with demonstrated potential to positively transform New England neighborhoods. Read the article here.

Healthy Neighborhoods Equity Fund closes $42 million for inclusive real estate in New England

ImpactAlpha announced the closing of HNEF II on May 4, 2023. Read the article here.

UnitedHealth Group Commits to Healthy Neighborhoods Fund in New England

Increasing access to affordable housing is one part of UnitedHealth Group’s commitment to redefining healthy living for underserved individuals and promoting positive health outcomes. Read their blog about the Healthy Neighborhoods Equity Fund, here: https://www.uhccommunityandstate.com/content/uhccomstate/content/blog-post/dual-author/unitedhealth-group-commits-to-healthy-neighborhoods-fund-in-new-.html

The Impact of Health and Housing Partnerships

Kathy McGilvray, MHIC’s Director of Investment, joined Ebony Perkins, UnitedHealthcare’s Director of Impact Investments and Dr. Megan Sandel, Boston Medical Center’s Director of Place-Based Investing, at “Investing in Health: A New Frontier of Health and Housing Partnerships” on November 3, 2022, at the Federal Reserve Bank of New York. Moderated by Maggie Super Church, New York Federal Reserve’s Visiting Scholar, Community Development, the speakers participated in a panel exploring how collaborations between community development organizations and healthcare systems are building and maintaining affordable housing to improve population health outcomes and address health inequities. The Healthy Neighborhoods Equity Fund, co-sponsored by the Conservation Law Foundation and MHIC, is an excellent example of this model. Access a recording of the event here: Investing in Health: A New Frontier of Health and Housing Partnerships - FEDERAL RESERVE BANK of NEW YORK (newyorkfed.org)

UnitedHealth Group Commits $25 Million to New England Healthy Neighborhoods Fund

BOSTON (July 12, 2022) – UnitedHealth Group (NYSE: UNH) today announced a $25 million commitment to the Healthy Neighborhoods Equity Fund II (HNEF II). The fund, launched by Conservation Law Foundation (CLF) and Massachusetts Housing Investment Corporation (MHIC), was created to finance inclusive mixed-use developments near public transportation that offer retail, housing, and social services to support healthier communities.

As part of this commitment, three HNEF II transactions closed for developments in Brockton, Dorchester, and Hamilton, Mass. The HNEF II equity in these properties will help create 102 mixed-income homes, 24% affordable at 80% of Area Median Income (AMI) or below, and 25% deed restricted between 80% and 100% AMI. Each development includes neighborhood-serving ground floor retail space. The fund is expected to finance over 1,000 homes in total.

“We’re honored to partner with Conservation Law Foundation and Massachusetts Housing Investment Corporation in this mission to bring additional affordable housing to New England communities,” said Andy McMahon, vice president, community engagement and investment at UnitedHealthcare Community & State, a UnitedHealth Group business. “UnitedHealth Group recognizes that access to affordable housing improves community health outcomes and helps people live healthier lives. Partnerships like this one are crucial to our work to improve overall health outcomes in the communities we serve by addressing the most basic needs of individuals first.”

“We are grateful for UnitedHealth Group’s support of the Healthy Neighborhoods Equity Fund II, which finances developments that strengthen community and environmental health,” said Joe Flatley, MHIC’s president and CEO. “The fund is key to neighborhood revitalization, investing in properties that are close to transportation and provide access to employment but are also walkable and near open space.”

HNEF II invests in mixed-income, mixed-use real estate developments near public transit in Connecticut, Massachusetts, and Rhode Island. It pairs lower-cost equity and longer investment periods with rigorous screening for community, health, and environmental benefits using CLF’s HealthScore tool.

“For too long, low-income communities have been excluded from investments in healthy and sustainable housing and small businesses,” said Gina Foote, director of Impact Investment at Conservation Law Foundation. “With help from UnitedHealth Group and the Healthy Neighborhoods Equity Fund, that’s finally beginning to change. This investment will lead to more vibrant and inclusive neighborhoods across southern New England.”

Increasing access to affordable housing is one part of UnitedHealth Group’s multi-pronged commitment to redefine healthy living for underserved individuals and promote positive health outcomes. The company has made more than $630 million in affordable housing investments, with a commitment to reach $800 million by the end of 2022. These investments also include wraparound health services to address community needs and reduce gaps in care.

For more information on HNEF II and additional examples of developments, visit www.hnefund.org.

Article Describes Findings from HNEF’s Annual Healthy Neighborhoods Study

In “What Happens When the Community Collects the Data,” published August 10, 2021 in Shelterforce, Sandra Larson writes about how HNEF’s Healthy Neighborhoods Study, conducted annually since 2016, is tracking how neighborhood change affects residents’ health and well-being.

Read the article 

Healthy Neighborhoods Fund Gets Major Boost

Dana-Farber Cancer Institute commits $1 million to CLF, MHIC community investment fund

Dana-Farber Cancer Institute has committed $1 million to the Healthy Neighborhoods Equity Fund, founded by Conservation Law Foundation (CLF) and Massachusetts Housing Investment Corporation (MHIC). The fund was created to finance healthy and inclusive transit-oriented development projects in Greater Boston that might otherwise have gone unfunded.

“The lack of access to affordable, stable housing increases susceptibility to a variety of serious illnesses, including cancer, while also contributing to worse outcomes for patients living with this disease,” said Magnolia Contreras, Vice President for Community Health at Dana-Farber.  “An essential component of Dana-Farber’s mission is to address the root causes of health disparities that lead to cancer and we are proud to join CLF and MHIC in making this investment in the communities we serve.”

“Too many communities in Greater Boston have been plagued with disinvestment and unhealthy homes for generations,” said Maggie Super Church, Vice President of Healthy and Resilient Communities at Conservation Law Foundation. “Old, entrenched investment models for housing and small business exclude low-income communities and worsen disparities in health and sustainability. This investment from Dana-Farber will lead to healthier, more resilient neighborhoods and we can’t wait to get to work.”

The Healthy Neighborhoods Equity Fund (HNEF) is a private equity fund investing in mixed-income, mixed-use real estate developments near transit in Greater Boston urban neighborhoods. This innovative investing approach includes raising funds with lower-cost capital and longer-term investment periods, paired with rigorous screening for community, health, and environmental benefits.

”Dana-Farber’s investment in Healthy Neighborhoods Equity Fund not only helps communities in need, but provides meaningful benefits to minority-owned businesses and people of color,” commented Joe Flatley, Massachusetts Housing Investment Corporation’s President and CEO. “From our experience with HNEFI, we expect that for every $1 invested, $1.17 of construction contracts will be directed to MBE firms when pooled with other sources of funding. Minority-owned businesses have been most hurt by the pandemic, so we’re grateful for Dana-Farber’s support.”

The proposed redevelopment of 1463 Dorchester Ave in Dorchester, MA is a prime example of the type of project this fund invests in. The development will create 29 new mixed-income rental apartments with ground floor commercial space, replacing a vacant commercial building. All 29 homes will be deed-restricted for households earning 70 to 90 percent of Area Median Income. The development will be Passive House certified, includes a solar array, is a 2-minute walk to an MBTA station, will have no on-site parking spaces, and is designed under the guidelines of the Boston Compact Living Pilot Program.

HNEF I closes financing for new energy-driven, mixed-use residential development in Brighton

UHomes adds to transformation of neighborhood which not long ago was characterized by vacant lots

HNEF I closes financing for new mixed-use, energy-driven development in Brighton HNEF I has closed its ninth investment – a $900,000 investment for the development of UHomes located at 90 Antwerp Street in Boston’s Brighton neighborhood. With this investment, HNEF I is now fully invested for a total of $21.3 million.

UHomes is a mixed-income residential development being built on a vacant parcel of land that was donated by Harvard University for the express purpose of creating affordable homeownership opportunities and publicly accessible open space. It will consist of 20 units in several small buildings, including 12 deed-restricted affordable units. The development will also create over 15,000 square feet of publicly accessible open space, including a park, for the benefit of all neighbors.

According to the project’s developer, Urbanica, Inc., UHomes is an “energy-driven” project. It is designed to be compact, flexible and environmentally sustainable. The development will utilize various energy efficient methods and will endeavor to achieve LEED for Homes Gold certification.

UHomes is being built in a neighborhood (which essentially connects Allston and Brighton) that is clearly in the process of a major transformation. Not long ago, it was a largely blighted area with a vacant shopping center and other dilapidated buildings or underused structures. Now it is becoming an attractive mixed-income neighborhood with both affordable and market rate rental apartments and homeownership condominiums, retail establishments, a community center and many other amenities. It is a short walk to the Charles River which has walking and bicycling trails, and the Boston Landing commuter rail stop which provides direct access to downtown Boston. It is close to other public transit, shopping, dining, medical centers, schools, colleges, and universities. Adjacent to UHomes is Charlesview Residences, a mixed-income community built in 2012 with nicely landscaped open space and a publicly available community center.

HNEF I’s portfolio of nine projects in the greater Boston area includes investments in Boston (5), Braintree, Chelsea, Haverhill and Beverly. Seven are completed and are either operational or in lease-up. These nine investments have leveraged an additional $144 million of private and public investment in low- and moderate-income neighborhoods, which has resulted in creation of 586 new mixed-income housing units, 139,423 sq. ft. of commercial space, and 612 construction jobs.

HNEF featured in major national tax credit finance magazine

In “Health As a Funding Initiative,” published in the January issue Tax Credit Advisor, Scott Beyer writes about the evolution of HNEF I and how it led to the creation of HNEF II, a $50 million private equity fund launched in December 2019. Beyer summarizes how HNEF I’s $22.3 million has been spent, with highlights of three of its successfully completed projects, and gives us a peek at what HNEF II looks like.

Read the article 

HNEF I provides $1.2 million for new transit-oriented rental housing development in Codman Square

HNEF I has closed on its eighth project investment – 191 Talbot Avenue – a development in Codman Square, a historic Boston neighborhood within the larger Dorchester neighborhood of Boston that was historically and still is one of Dorchester’s major commercial centers.

Located at the intersection of Talbot Avenue and Bernard Street, the new project will have 14 moderately priced rental apartments and ground floor commercial/retail space. It is being built on a lot that has been vacant for more than ten years and which most recently was occupied by a gas filling station.

191 Talbot Avenue is across the street from the Joseph Lee Elementary School, less than 200 feet from the recently renovated Talbot Avenue MBTA commuter rail station (Fairmont Line), and about a mile to the Ashmont and Shawmut Red Line stations. There are many opportunities for outdoor recreation, with parks, basketball courts, soccer and lacrosse fields, and a playground nearby, and Franklin Park one mile away. A variety of retail stores, restaurants, schools, medical services, and many other amenities are also within walking distance. The City of Boston has taken significant steps to promote outdoor walking/bicycling/play opportunities for residents; it recently invested over $2 million into Harambee Park to add play, ballfields and walk/bike paths and added bike lanes to Talbot Avenue.

The project’s developer, TLee Development, LLC, intends to build 191 Talbot Ave. to meet Passive House standards. Passive House stands for quality, comfort and energy efficiency and is the world’s leading standard in energy efficient construction.

When considering this project as a potential investment, the HNEF team found significant opportunity for positively impacting the safety, walkability, and activity in the neighborhood and for reducing health disparities among its residents. Creating safe, quality housing with easy access to transit and outdoor recreation will also contribute to the ongoing revitalization of Codman Square.

191 Talbot Avenue is HNEF’s eighth project investment, for a total of $20.6 million Invested by HNEF I to date.

"The Granville" – HNEF’s project investment in Haverhill, a hidden gem of a city, celebrates near completion with ribbon cutting

Haverhill, October 22, 2019 – A ceremonial ribbon cutting was held at 87 Washington Street, a development now called “The Granville,” with several state and local public officials, including Haverhill’s Mayor Fiorentini, the developer Dave Traggorth, funders, and members of the project team in attendance.

Excitement about the newly transformed building was palpable as is excitement about Haverhill’s ongoing revitalization. Walking along Washington Street you will see many new stores and restaurants. The city is buzzing with construction that will transform several other formerly vacant historic buildings and storefronts into housing and retail.

With the Haverhill rail station within two blocks and with stores, restaurants, grocery stores, entertainment and the Downtown Riverwalk along the Merrimack right downtown, Haverhill is becoming a popular and attractive destination to live, work, and visit. It’s fair to say that this city, which not too long ago was considered distressed, is coming alive and with it there is a positive energy and vibe that makes you want to be there.

The Granville represents HNEF’s seventh project investment.

For more information about this development, see “87 Washington Street.”

The Granville is a transit-oriented development in the heart of Haverhill that has converted a vacant historic building into 24 stunning loft apartments and ground and first floor commercial space. Inside the building you will see preservation or replication of original features of the building, such as a tin wall made to look like the tin roof inside the ground floor space. Inside the apartments you will find large windows, brick walls, wood beams, and barn-door closets.

Completion of HNEF-financed project -- Bartlett Station -- is celebrated with ribbon-cutting ceremony

BOSTON, August 15 – More than a hundred people gathered today to celebrate the completion of the first phase of the redevelopment of Roxbury’s Bartlett Station, a transformative development on the edge of Dudley Square. This phase includes two buildings – a 60-unit of rental apartment building and 16-unit condominium building. HNEF’s $2.9 million investment helped to finance 28 rental apartments (expected to convert to homeownership in the future), 13,300 square feet of retail space which will house a Good Food Markets store providing fresh quality produce, and a parking garage.

Read more

See photos from ribbon cutting

HNEF project featured in Banker & Tradesman article, "Opening of Dorchester's Treadmark Represents Reborn Neighborhood”

Trinity Financial, Inc.’s Jim Keefe tells the story about how the Treadmark development – a mixed-income and mixed-use building in Dorchester that is transforming Boston’s Ashmont neighborhood – came into being. 

Read this interesting story.

Developers of two HNEF-financed projects get “Excellence” awards at MHIC annual meeting

Holmes Beverly, Rantoul St.

Massachusetts Housing Investment Corporation this year chose developers of two HNEF- financed projects to receive awards at its annual meeting and awards ceremony, held on June 4 at the Omni Parker House in downtown Boston and attended by nearly 300 people.

The awards were presented to: Sarah Barnat, president of Barnat Development, for her development of Holmes Beverly, for which HNEF provided a $4.9 million investment. Barnat Development specializes in urban, mixed-use and transit-oriented residential construction. Holmes Beverly is a new mixed- income, mixed-use apartment complex next to the Beverly MBTA Depot commuter rail station. The 67-unit development has transformed a vacant, underutilized parcel at a commuter rail station onto a new transit-oriented community. Ms. Barnat received an Excellence in Community Development award “for her visionary plan and steadfast execution in re-imagining a vacant parcel into a vibrant transit-oriented building with dynamic retail and homes accessible to households with a range of incomes.”

Kamran Zahedi of Urbanica, Inc., a Boston-based developer which specializes in transforming underutilized spaces into unique projects. Urbanica received an Excellence in Minority Inclusion award “for being a champion of equity and inclusion and for creating access and opportunity for minority-owned firms and workers of color during the construction of the Melnea Residences.”

The Melnea Residences is a new, mixed-income apartment complex with 50 rental apartments for which HNEF provided a $3.85 million investment. It was built on a vacant property on the edge of Dudley Square in Roxbury, adjacent to the new Marriott Residence Inn, which also received New Markets Tax Credit financing from MHIC. During construction of the Melnea Residences, Kamran Zahedi made extraordinary efforts to utilize workers of color and minority-owned businesses.

Melnea Residences, at the corner of Melnea Cass Blvd. and Washington St., Roxbury

In presenting the awards, MHIC President Joe Flatley said, “We are more than delighted to have this opportunity to publicly recognize those who have gone beyond what was required to not only build badly-needed housing in Massachusetts, but in doing so to advance the revitalization of neighborhoods and to create jobs and new opportunities for community residents.”

Transformative development in Boston’s Ashmont neighborhood – Treadmark – celebrates official opening with ribbon-cutting ceremony

HNEF’s investment is helping to rebuild this community with “healthy people, healthy environment and a healthy economy”

June 7 – Nearly 200 people, including Mayor Martin J. Walsh and U.S. Representative Ayanna Pressley, today joined Trinity Financial, other public officials, and community and business leaders to celebrate the official opening of Treadmark, an 83-unit mixed-income, mixed-use, transit-oriented development in Dorchester.

Treadmark represents HNEF’s second investment, made in 2016. The building – named for a tire company that operated on the site for generations – consists of 32 moderately-priced homeownership units, which HNEF helped to finance, and 51 affordable rental apartments, which were financed separartely. The development also includes ground-floor retail with the neighborhood shop, American Provisions. In addition to American Provisions, Trinity Financial will complete the ground-floor retail program, with two remaining retail spaces totaling 2,500 square feet.

“The opening of Treadmark is an important and exciting milestone for Peabody Square,” said Mayor Walsh. “I am proud that together we have created dozens of affordable units and retail space for businesses that will help boost the local economy.”

U.S. Representative Ayanna Pressley, a resident of this neighborhood, exuded enthusiasm in her remarks. “These aren’t just 83 units, these are 83 families whose lives will be changed,” she said. “This is an incredible community. It’s vibrant. It’s diverse. It’s civically engaged. I’m so excited for our new neighbors that will be able to call this community home.”

Maggie Super Church, Vice President of Market Innovation and Impact at the Conservation Law Foundation, represented HNEF at the ceremony as one of eight speakers. In her comments, she summed up HNEF’s interest in this project.

“When CLF and MHIC set out to create HNEF a few years ago, our goal was to help fill the gap for mixed-income, mixed-use projects close to transit. We know that these kinds of projects, when they are done right, have multiple benefits: healthy people, healthy environment and a healthy economy.

“Treadmark brings together all of the key ingredients for a healthy neighborhood: housing that’s affordable to broad range of people and families, including new homeownership opportunities; access to public transit and jobs; safe and walkable streets; and access to healthy food and green space. Equally important, this project reflects the vision and aspirations of residents in this community and the City of Boston,” she said.

For more information about Treadmark, see our project page.

How can healthcare systems build an "anchor mission," an all-out approach to improve the health of communities through local hiring, local purchasing and place-based investment?

The subject of “anchor missions” and what various health care institutions and others involved in the pursuit of improving public health are doing was a major focus of discussion at the New England Healthcare Anchor Network meeting sponsored by UMass Memorial Health Care on May 7th.  Through panels and presentations, the group addressed issues such as Getting Started with Leadership Support, Data to Measure Returns, Investment Project Examples, and Working Together in the Future. Maggie Super Church, CLF Vice President for Market Innovation and Impact, gave a presentation on HNEF, with examples of HNEF investments and progress to date.

According to its website, the Healthcare Anchor Network is “a growing national collaboration of more than 40 leading healthcare systems building more inclusive and sustainable local economies.” Take a look at its excellent Blog, with timely and interesting articles that should be of interest to all those who are involved with building healthier communities.

UMass Memorial Health Care is investing in the community to improve public health

The biggest health organization in central Massachusetts – UMass Memorial Health Care – is going beyond its traditional role as a health care provider by embarking on an “anchor mission” to address the social determinants that lead to poor health. With annual revenue of $2.5 billion, the organization has set aside funds for local investments with the goal of improving the overall health of the region and, ultimately, reducing the need for medical care.

Read about what UMass Memorial and other health care organizations – Boston Medical Center, Promedica, among others – are doing to invest in the community and influence social issues impacting public health. See May 28, 2019 article in the Worcester Telegram and Gazette: UMass Memorial on ‘mission’ to improve social determinants of poor health

HNEF cited in U.S. News interview as example of a unique new way to finance building healthier communities

U.S. News & World Report recently published a wide-ranging interview with David J. Erickson, director of community development at the Federal Reserve Bank of San Francisco, about how the Federal Reserve is working to advance community health through development. Entitled “Investment: An RX for Community Health,” and conducted by U.S. News editor for health initiatives Steve Sternberg, the interview focuses on how “The Federal Reserve and other major economic players are pushing cash-backed efforts to build healthier communities.”

Mr. Erickson talked about his work in leading a collaboration between the Federal Reserve and the Robert Wood Johnson Foundation that brings together health and community development leaders from across the country through a series Healthy Communities Conferences, one of which was held in Boston in December 2018. At that conference, HNEF’s Maggie Super Church and Joe Flatley participated on a panel to discuss HNEF as an economic development lever for health.

In his interview with U.S. News, Mr. Erickson explained how the Healthy Communities meetings are raising consciousness, fostering cross-sector partnerships, and encouraging co-investments. He called HNEF one of his “favorite examples” of the community development and health sectors coming together to invest in the development of healthy communities. He also mentioned a blended fund created by LISC and ProMedica in Ohio, a loan fund created by Dignity Health, and several other creative efforts around the country.

Check out this interesting piece and read about what others are doing to promote better health outcomes for low-income people and communities by addressing the social determinants of health.