New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
THE MILL ON ACUSHNET THE MILL ON ACUSHNET
2
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
PROJECT TEAM
Zayba Abdulla
Chichi Anyoku
Natalia Chavez
Edward Delman
Jeffrey Dike
Stephanie PeĂąa
HKS Candidate Harvard University
MPP/MBA Candidate Harvard University
MCP Candidate Boston University
JD Candidate Harvard Law School
M.Arch Candidate Wentworth Institute of Technology
MCP Candidate Massachusetts Institute of Technology
OUR SPONSOR
Michael Galasso New Bedford Development Corporation Developer
The New Bedford Development Corporation (NBDC) is a newly formed 501 c-3 non-profit that spun out of the New Bedford Housing Authority. The mission of NBDC is to develop stable, vibrant, energy efficient, healthy and sustainable properties by building, financing and operating housing that is affordable to working families and individuals in New Bedford. NBDC is currently concentrating its efforts on redeveloping the city’s downtown historic district with a number of mixed-use market rate and affordable workforce housing developments. The staff and Board of Directors of NBDC have over 50 years of experience in developing, managing and financing housing which is affordable to those working in the communities it serves.
3
WITH SUPPORT FROM Benjamin W. Greathead Credit Officer, Middlesex Savings Bank Finance Mentor
Russell Feldman, AIA Principal, TBA Architects Inc. Design Mentor
David Robinson
Esti Shapiro
MCP Candidate Massachusetts Institute of Technology
M.Arch Candidate MCP/MSRED Candidate M.Arch Candidate Wentworth Institute of Massachusetts Institute Wentworth Institute of Technology of Technology Technology
ACKNOWLEDGEMENTS
Kristopher Steele
Danny Stevens
We are deeply appreciative of the opportunity to collaborate in an interdisciplinary team of graduate students in architecture, urban design, urban planning, law, and public policy. Working together on this fast-paced project has allowed us to better understand the complexities of each aspect of the affordable housing development process, and to appreciate the skills and experiences that each of our peers has brought to this team. We commend the Federal Home Loan Bank of Boston for creating this opportunity. Likewise, we are grateful to our project mentors and advisors, including Ann Borst, Ed Marchant, and Peter Roth, who guided us throughout this process and used their
William Toohey III
YunJung Yang
MAUD Candidate Harvard University
MPA/ID Candidate Harvard University
experience to provide invaluable insights into the affordable housing industry. We would like to thank Michael Galasso, our client at New Bedford Development Corporation, for providing us with a jumping off point for this project and helping us understand the context of development in New Bedford. Lastly, we appreciate the time and insight that the people of New Bedford have given to us. We spent over 30 hours learning from residents, small business owners, workers, government officials, non-profit organizations and passersby about what it’s like to live and work in New Bedford. We believe that our project will only be successful because of the time we were able to spend with these people.
Jennifer Lee Michaliszyn Wentworth Institute of Technology Faculty Advisor
4
CONTENTS
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
Introduction
6
38
Finance + Feasibility
Executive Summary
Finance Overview
Our Vision
Funding Sources
Judgement Criteria
Total Development Costs
Operating Pro Forma
Context
12
Getting to Know New Bedford
Zoning
A Brief History of New Bedford
Smarth Growth Principles
Building for Those in Need
Development Timeline
The Future Residents of the Mill on Acushnet
46
20
Design + Program
Building Massing
Building Cross Section
Ground Plan
Typical Unit Plan
Roof Plan
Sustainability
Conclusion Looking Forward
Bibliography
5
6
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
EXECUTIVE SUMMARY
Introduction EXECUTIVE SUMMARY OUR VISION CONSISTENCY WITH THE CITY'S DOWNTON DEVELOPMENT PLANT JUDGEMENT CRITERIA
35,287 total square feet of The Mill on Acushnet
40
Total Apartment Units
16
Affordable Apartment Units
Context Project goals New Bedford is rich in economic and cultural • Provide stable and affordable housing history. The city was the whaling capital of the for the next generation of local artists, world in the 1850s, one of the largest textile community college students and downtown producers in the country in the 1920s, and a workers hub of immigration from Europe and South • Promote economic and community America over the past two centuries. However, development for residents and community as industry moved out in the mid-20th century, members by providing innovative work New Bedford experienced significant economic spaces for students and artists losses that resulted in high poverty, poor public • Invest in education by providing K-12 education, a loss of quality affordable housing, classroom space in partnership with and a lack of well-paying jobs. In the past neighboring Bristol Community College 10 years, the city has undertaken a massive • Promote walkability in the center of push to rejuvenate the historic downtown by downtown by reprogramming activities in investing in its historic attractions, vibrant art adjacent public spaces. scene, housing stock, and small businesses. Unit Types The Mill on Acushnet is situated squarely • Studio apartments in the center of New Bedford’s downtown • One-bedroom apartments revitalization. Drawing on the city’s rich • Two-bedroom apartments cultural history and promoting downtown community and economic development, the Affordability Mill on Acushnet provides affordable housing • 6 units at 30% AMI and community and educational spaces for a • 6 units at 50% AMI diverse population of existing and future • 10 units at 80% AMI downtown residents. • 14 units at 100% AMI • 4 units at 110% AMI
7
Introduction
Financing • First Mortgage -Tax Exempt Bond • MHIC Healthy Neighborhoods • LIHTC • Mass Housing Workforce Housing Program • FHLB- Boston AHP • CEDAC CBH • NB CPA • NB HOME • DHCD Rental Programs • Deferred Developer's Fee • Utility Energy Star Rebate Program Key Features • Work and studio space for resident students and artists • Innovative year-round programming in adjacent public spaces • Classroom space in partnership with Bristol Community College • State of the art ecologically sustainable building features. • Uniquely challenging site contraints. A narrow 37 x 225 foot lot with community features lovated on both building faces. • Roof garden
11,065 total square feet of commercial space
15 Artist Studios
32
Indoor Bicycle Parking Spaces
Saw Mill, Acushnet River
Textile Workers, New Bedford
Cotton Mill, Acushnet River
ALL IN THE NAME
During the height of the American Industrial Revolution, the New Bedford economic system of the late-1800s revolved around cotton and saw mills built along Acushnet River. With NBDC's project situated on Acushnet Avenue, we aim to reinvoke these images of historical successes in our design and serve as a catalyst Mouth of Acushnet River for future economic properity.
8
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
OUR VISION The Mill on Acushnet draws inspiration from New Bedford’s history + diversity to reinforce investment in arts + culture. As a catalyst for community and economic development, The Mill on Acushnet will provide residents quality, affordable housing that through its design and programming, will empower the entire community by proximity to arts, culture and education. Located directly between Custom House Square and Wing’s Court, The Mill on Acushnet aims to facilitate a connection between the New Bedford Whaling Museum and the Zeiterion Theatre to promote walkability in the downtown area. The connection of these two strong, arts and cultural nodes, is reinforced by the programming of both Custom House Square and Wing’s Court to encourage greater, year-around engagement that ushers foot traffic downtown. Within The Mill on Acushnet, smaller units are geared to house artists, non-traditional community college students, young professionals, and empty nesters. Generous amounts of community and work spaces allow for these transitioning populations to engage and create. A heavy emphasis on artist studios and maker-spaces aims to inspire entrepreneurial efforts of the community. First floor work spaces are highlighted by coffeeBAR, a daytime cafe that turns into a bar in the evening, creating a vibrant communal space. Lastly, the top story of The Mill will take advantage of the eastern waterfront views
and house a flexible communal space that is primarily for residents, but can also fill the need for community events. New Bedford Development Corporation will take on Bristol Community College’s (BCC) satellite campus expansion and incorporate BCC's interest in expanding student-focused spaces throughout The Mill. Flexible community and work spaces are programmed to promote both individual and collaborative settings. The first floor will comprise of co-working and gallery spaces that are accessible to the entire community. In efforts to address the need for additional educational support for public school students, NBDC sought out a partnership with BCC. In total, BCC was afforded over 2,800 square feet of class, community, gallery, and work space in The Mill.
Wings Court Today
"...the city should prioritize the cultivation of its artistic and cultural assets, both to spur economic development and to enhance the city's quality of life". -Jon Mitchell, Mayor of New Bedford Courthouse Square Today
9
Introduction
"
CONSISTENCY WITH THE CITY'S DOWNTOWN DEVELOPMENT PLAN Strengthen our community and enhance neighborhood vitality by recognizing the city’s cultural diversity and increasing public participation in arts and culture. Establish an economic strategy for the creative economy and tourism functions that is aligned with overall city development activities. Foster sustainable cultural organizations. Promote and market the cultural and historical assets of New Bedford to transform the city’s image for both tourists and residents. Educate and inspire the next generation of creative thinkers through advocating for arts education in the K-12 school system and acknowledge and support after-school providers and cultural institutions.
"
Top Right: A City Master Plan New Bedford 2020; Bottom Left: New Bedford Creative: our art, our culture, our future
Fredrick Douglass Mural, Artist Lydia Stein
"Waterfront", Zeiterion Performing Arts Center
New Bedford Public Schools Arts Program
10
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
JUDGEMENT CRITERIA PHYSICAL DESIGN
PROJECT FINANCING
INNOVATION
A state-of-the-art student center for BCC community college students provides flexible study, breakout, and collaborative work spaces, as well as a gallery to exhibit the work of local artists.
The innovative financing structure, which focuses on more easily accessible LIHTC 4% tax credits, is designed to maximize gap funding while also ensuring that construction can start as soon as possible.
Vibrant art and work space and re-programmed adjacent public space position the Mill as a node for residents and community members in the downtown.
The coffee/bar and workspace provides Our unit mix is designed to serve households communal space for residents and community across a variety of income bands. We provide members. housing for the low-income downtown population (16 units at 60% or less of AMI), Ample bike storage and energy efficient laundry while also generating additional income to facilities encourage residents to minimize their boost project competitiveness and viability carbon footprint. through our 24 market-rate units and productive commercial space. Murals by local artists as well as outdoor lighting and furniture create a sense of community and encourage residents to feel a sense of ownership over the underutilized public space in Wing’s Court. A large rooftop terrace with views of the waterfront and downtown New Bedford gives residents a place to gather, provides space for events, and contains a community garden.
Mixed-use artist studio/dwelling units provide an innovative mix of living and work space that makes it more affordable for local artists to ply their trade. Universal Design Standards encourage longevity of residents and allows the project to take advantage of CEMAC tax credits. The partnership with BCC maximizes unit space across two sites, while also giving back to the downtown community by designing state-ofthe-art educational space for students.
Introduction
ENVIRONMENTAL SENSITIVITY PROJECT FEASIBILITY
COMMUNITY RESPONSIVENESS
The construction materials are sustainable. Cross-laminated timber construction aims to reduce our project’s overall carbon footprint. We use No VOC paints, coatings, primer, adhesives or sealants.
The Mill has been tailored to garner the support of the local community – it’s been designed for the unique needs of downtown residents, is home to a range of unit options and flexible spaces, and incorporates Universal Design Standards.
The physical design, programming and identified residents of the Mill on Acushnet are the result of 30 hours of field research and conversations with 28 residents, civil society organizations, local businesses, government officials and the downtown workers.
Roof terrace and gardens act as a rainwater retention system.
The 40/60 mix of affordable to market-rate housing provides support for those in need of housing, while also fitting neatly within the city’s market-rate oriented vision for economic development its downtown area.
Units and common spaces are designed for local artists, downtown workers and lowincome community college students, who we All units come equipped with energySTAR learned had the greatest need for affordable appliances. housing in the downtown. These spaces and units are also designed be attractive to marketAmple bike storage and an electric car- The New Bedford Development Corporation rate tenants, including young professionals and share system promote more sustainable (NBDC), our project sponsor, has close empty nesters wanting to live downtown. transit options. relationships with the relevant stakeholders in New Bedford and has experience building The re-programming of Wing’s Court and Higher density development with an high-quality, modern multi-family housing in Custom House Square on either side of the Mill emphasis on shared space promotes a downtown New Bedford. on Acushnet reflects the community’s desire more efficient model of living. for more useful public space in the downtown area and fits neatly into the city’s plan for promoting greater walkability in the downtown corridor.
11
12
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
GETTING TO KNOW NEW BEDFORD
Context WHO WE TALKED TO
23%
Population Living in Poverty
COMMUNITY ENGAGEMENT BUILDING FOR THOSE IN NEED KEY DESIGN CONSIDERATIONS FROM COMMUNITY ENGAGEMENT
6%
Unemployment Rate
37.5 Median Age
New Bedford, MA, is a small city of 95,125 people with a relatively stable population over the past 20 years. The median age is 37.5, with 47.6% of the population falling within 25-59 years age bracket. The city is diverse—over one in three people are people of color, approximately 21% were born overseas, and almost 10% are not US citizens.
same amount on housing despite having less income. Moreover, rent has been increasingly steadily in New Bedford. The current figure is a 76% increase from the median rent in 2000. This discrepancy between income and rent means that almost half of New Bedford qualifies as rent-burdened, and a quarter are severely rent-burdened. There are also New Bedford’s current economy is a shadow of significant problems with the existing its booming industry in the 19th and early 20th housing stock. Over 52% of the housing century. While approximately 62.3% of people units were built over 80 years ago, and only above the age of 16 are in the labor force, and 4% were built in the past two decades. 56.6% of people above 16 are employed, the unemployment rate is still above the national Downtown New Bedford average, at 6%. While the economy is highly diversified, with the majority of employed Downtown New Bedford, the site of the individuals working in either educational Mill on Acushnet, has many of the same services, manufacturing, or retail trade, demographic characteristics as the city incomes are low. The median household at large, but has lower median incomes income is 33% below the national median and and a higher population of renters. A 47% below the median in Massachusetts. The little over 1% of the population lives in median non-family household income is even the Downtown (1,365 people). Similar to lower, at $24,947. Moreover, 23.1% of the New Bedford, the downtown’s non-white population lives in poverty. population is roughly a third of the total population. A vast majority--67%--of the Many people in New Bedford struggle with Downtown population is of working age, finding stable and affordable housing. One and the median household income is of the reasons for this is that rates of home extremely low, at $13,111. Moreover, 91% ownership are low, with 59% of occupied of the occupied housing units are renterhousing units occupied by renters. Given the occupied. The low incomes and high rental low median incomes, rent is comparatively rates are a recipe for rental burden among high at $802. While the median income in the Downtown population. Bristol County at large is much higher than New Bedford, median rent is similar at $855, meaning that people in New Bedford pay the
13
Context
92,125 64%
Median Household Income
of population are People of Color
Massachusetts Bristol County
United States
New Bedford
average rent in New Bedford is
$61,372
$77,385
$62,514
Downtown New Bedford $40,626
-Case manager at local non-profit
33%
of the population is of working age between 18-64
$13,111
“People in New Bedford don’t have adequate housing. The housing stock is old and broken down. We have people coming in all the time with mold, lead paint, you name it.”
total population of New Bedford
$802
14
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
A BRIEF HISTORY OF NEW BEDFORD New Bedford is widely known for its been known for its rich cultural history and diversity. For centuries, immigrant populations have brought commerce and cultural traditions that give the city a distinct multicultural identity. Originally settled by Europeans as the village port area of Old Dartmouth, New Bedford sprang into existence as a town in 1787. In 1847, the town became a city as it emerged as the whaling capital of the world. Whaling brought immense prosperity to New Bedford—Herman Melville noted that “…nowhere in all America will you find more patrician-like houses, parks, and gardens than in New Bedford.” The whaling industry also attracted an influx of immigrants and freedom-seekers who sought to share in New Bedford’s good fortune. New Bedford became home to a thriving PortugueseAmerican community, primarily from Madeira or the Azores, that followed the whaling industry to southern Massachusetts. New Bedford also acted as a safe haven for enslaved people escaping from the South due to its racial diversity and availability of work.
As the whaling industry began to decline over the latter half of the 19th century, New Bedford showed a remarkable adaptability to the shifting economic landscape. The city became a textile powerhouse, with one of its companies, Wamsutta, becoming the largest cotton weaving plant in the world by 1892. By 1907, New Bedford had 25 textile manufacturing companies, with 50 separate mill buildings and 14 more under construction. New Bedford’s industrial boom only solidified it as a destination for immigrants—between 1910 and 1915, 84% of its population was first- or secondgeneration immigrants. The city also continued to fortify its identity as a hub for the arts through the development of its arts industry. New Bedford became particularly well known for its glassworks, which produced lampshades, bottles, and serving vessels, among other things. The prosperity and diversity of the city was reflected in its geography, with numerous walkable commercial corridors and centers served by entertainment venues and shopping establishments.
and by 2000 to 93,768. Jobs also suffered, with at least 10,000 jobs being lost between 1930 and 2010 and unemployment hitting 12.5% in 1990. The combination of the rise of the automobile and failed urban renewal efforts in the 1960s only exacerbated problems, leading to population flight into the suburbs and a subsequent weakening of the city’s once-vibrant neighborhoods and commercial centers.
Today, New Bedford is re-emerging as the premier Gateway City of Massachusetts. Thanks in part to being home to UMass Dartmouth’s School of Visual and Performing Arts, the downtown has a thriving arts scene with numerous galleries and studios. The city remains highly diverse and still has a strong Portuguese flavor—about a third of people in New Bedford claim Portuguese heritage, while there are also substantial Cape Verdean and Guatemalan populations. The city also remains the number one commercial fishing port in the United States, has a widely diversified industry base, and will soon be the operations center The period of extended prosperity did not for the first full-scale off-shore wind farm in The city was a stop along the Underground last forever, though. By the 1920s, New the nation, guaranteeing increased jobs and Railroad—between 30% to 70% of people of Bedford entered a steady decline due to the revenue to the city for years to come. color in New Bedford in the mid-19th century relocation of its mills to cheaper labor sources were escaped slaves, including the prominent in the South, a hurricane in 1938 that severely abolitionist Frederick Douglass—and the damaged the city’s infrastructure, and the city’s active Quaker community advocated for more generalized economic shocks that injured abolition. Numerous famous artists also settled the mid-sized industrial cities of the United in 19th-century New Bedford, including Clifford States throughout the 20th century. From a Ashley, Albert Bierstadt, William Bradford, and high of 121,217 people in 1920, New Bedford’s Albert Pinkham Ryder. population by 1970 had decreased to 101,777,
New Bedford Whaling Port
Arrival of 15 Escaped Slaves in New Bedford
Whalers to Weavers
15
Context
COMMUNITY ENGAGEMENT
DOWNTOWN RESIDENTS GOVERNMENT AND BUSINESSES OFFICIALS
STAKEHOLDER INSTITUTIONS AND ORGANIZATION
WHO WE TALKED TO New Bedford Economic Development Council Bristol County Community College The Zeiterion Theatre The Community Economic Development Center
30
Hours of Background Research
Mass Development The United Way of Greater New Bedford
The Mayor’s Office The Department of Planning, Housing and Community Development
10
Hours at Project Site
The Planning Department
Residents of adjacent properties The Green Bean Coffee Shop Brick Pizzeria Women’s Fund of Southeastern Massachusetts
28
Stakeholders Interviewed
Despite our broad understanding of the economic and housing challenges that New Bedford faces, we knew that any successful affordable housing development in the city would require more specific information about the housing needs of the people in Downtown New Bedford. In order to learn this we engaged directly with residents, employees and users of the downtown area, as well as government officials, civil society organizations and neighboring business owners. Without a specific mandate of who to build for and what to build, we relied heavily on an inductive process of community engagement in which the needs and opinions of stakeholders informed the vision, design and programming of The Mill on Acushnet.
16
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
BUILDING FOR THOSE IN NEED One of the primary questions that we sought to answer through the community engagement process was: who needs affordable housing in downtown New Bedford? Through conversations with stakeholders we learned that there are three primary types of people that need affordable housing in downtown New Bedford:
Low-Income Students A bedrock of New Bedford’s downtown is Bristol Community College (BCC), which serves a parttime student population from the Southeastern Massachusetts. Forty-three percent are firstgeneration college students, while another 43% say that a lack of finances would cause them to withdraw from college. Approximately 1,400 students of the ~7,200 BCC students live in New Bedford. Interviews with students and staff at the College suggest that there is a high demand for student housing, since current students often live in overcrowded and stressful conditions with their families and live far away from school, making it hard for them to commute and find personal space to study. An additional challenge for these students is that many students are single mothers returning to school who are managing work, school and parenthood all in unstable housing.
Local Artists In the past 10 years, New Bedford has become a center of activity for local artists. The Zeiterion Theatre and monthly Art History and Architecture nights showcase local artists to a regional audience, and many young artists are using studio space on the waterfront and downtown. However, the artist population lacks the capital to afford both studio and living space. Many of the people we spoke to highlighted the need to combine affordable downtown units with affordable work space for young artists in order to support the city’s Market Rate Tenants creative workforce. In order for the project to be feasible within the city’s economic development strategy that Young Downtown Workforce focuses on market-rate housing, we needed to The city’s recent downtown development has build a 40/60 mix of affordable units to marketseen an influx of new restaurants and retail rate units. From interviews, we learned that shops. According to many of the community there is high demand for young professionals members we spoke to, the downtown staff, working in downtown and empty nesters to live including waiters and waitresses, baristas, in the downtown area. We designed the units and retail clerks currently commute daily from and common spaces to cater to the needs of less expensive areas of the city or surrounding these populations as well as lower income towns and pay expensive fares for downtown artists, students and downtown workers. parking. With parking a significant expense for downtown commuters, these workers are in need of affordable units nearby to work.
“When I talk to people from outside New Bedford that come down, they say ‘holy cow, it's unbelievable!’ This is this wonderful gem, you have beautiful natural attributes to the city, and cultural diversity here and a number of opportunities to do things from arts to culture. And over the last 10 – 15 years especially, there has been a resurgence in the young population and entrepreneurial in the downtown.” -Resident of New Bedford "I live 40 minutes away in Wareham with my husband’s family and I struggle to find the space to work and be close to other students … it would be more comfortable to live with people my age and other students close to campus.” —BCC student “There’s a large community of artists in New Bedford. Many of them rent both apartments and separate studio spaces that they split among a group of artists. The spaces are in separate places -- often far apart -- and I know many artists that are hoping to live downtown. It’s where artists want to be.” -Barista, Local Coffee Shop
17
Context
US 6
Legend 1. YMCA 2. Courthouse Square 3. Bristol Community College 4. Rite-Aid 5. New Bedford Whaling Museum 6. Ferry Terminal
ELM ST.
5 2
N. 2ND ST.
3
ACUSHNET AVE.
WILLIAM ST.
US 18 - JFK MEMORIAL HIGHWAY
4
NANTUCKET FERRY TO BOSTON
6
UNION ST.
1
20 0
50
100 200
Site plan indicating the site of development in green. Buildings outlined in green fall within the New Bedford Whaling National Historical Park district
18
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
Rendering of The Mill on Acushnet from Wing's Court
Context
19
KEY DESIGN CONSIDERATIONS FROM COMMUNITY ENGAGEMENT “Students who attend the BCC campus are nontraditional students. They’re often single mothers who are returning to school and balancing parenthood and part-time jobs.” -Women's Fund Staff "It’s hard to say what exactly it is about New Bedford, but moving back here been exciting. It’s a resurgence that hasn’t forgot its roots. It's still a little gritty, but it's hip." -Resident of New Bedford
Our community engagement strategy also Studio Space for Artists led to a number of key considerations in our Similarly, several artists emphasized their need programming and physical design. for affordable studio space to ply their trades. Currently, artists often rent and share studio A mix of unit types space on top of renting housing, which can be Within our target populations of community burdensome. The studio space will allow artists college students, downtown workers and local to live and work affordably, nearby to downtown artists, there is a wide variety of needs when it galleries and retail shops. comes to housing. Some residents informed us that they would prefer to live with roommates, Reprogramming of Wing’s Court and Custom others wanted space for their young families House Square and children, while others preferred to live Every constituent we spoke to about Wing’s alone in studio or one-bedroom apartments. Court and Custom House Square identified To accommodate this diversity, we built three these public spaces as underutilized and types of units: studio, one-bedroom and two- unsafe. With the proper programming, residents bedroom apartments. believe that these two open spaces could provide valuable public space in downtown Study Space on the Ground Floor New Bedford for residents, employees and Community college students and artists visitors. City officials and developers also expressed a need for more study space. The New noted that making this outdoor space usable Bedford campus of Bristol Community College for recreation would help connect the historic has a lobby and classrooms, but no dedicated waterfront and the iconic Zeiterion theatre. space for studying and collaborating. The study Our proposal promotes more public activities area programming on the ground floor, which in these spaces, such as farmer’s markets and includes individual desks, meeting rooms and artist markets to better connect residents and phone booths for conference calls provides community members. both quiet study areas and collaborative working space both BCC students to work.
20
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
BUILDING MASSING
Design + Program BUILDING CROSS SECTION GROUND PLAN TYPICAL UNIT PLAN ROOF PLAN SUSTAINABILITY SMART GROWTH PRINCIPLES
In an effort to better serve the students, artists and young professionals of downtown New Bedford, The Mill aims to reimagine how communities live. The individual units are highly-efficient, and designed with compact living strategies and best practices in mind. Smaller units are favored in exchange for greater public social spaces throughout the project. Leasable artists studios, makerspaces, and other non-traditional work spaces are integrated throughout the plan. This offers residents the opportunity for a live-work space, or to share studio or work space with friends and other artists. The small community spaces throughout the building consist of a mix of indoor and outdoor living space, providing for greater social interaction amongst residents. At the building scale, four floors of residential units are sandwiched by two entirely public levels. The ground floor includes a coffeeBAR, work space for young professionals and students, and a flexible gallery/event/ programming space. The building is topped by a roof terrace with unobstructed views over Custom House Square and out across the harbor. The roof is also home to The Mill’s vegetable and herb garden, which is collectively tended to by the residents.
Commercial and Retail Opportunities
One-Bedroom Unit Locations
21
Design + Program
Studio Unit Locations
XL Studio Unit Locations
Two-Bedroom Unit Locations
All Unit Locations
22
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
Design + Program
23
Section Perspective of The Mill On Acushnet
24
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
Design + Program
25
Cross-Section of The Mill On Acushnet
26
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
GROUND PLAN
4
3 2
5
1
Acushnet Avenue
6
William Street
Legend 1. Entry Lobby of The Mill 2. CoffeeBAR 3. Work sSpace 4. Indoor Bicycle Storage 5. BCC Student Lounge Lobby 6. Proposed Bicycle Lanes
Design + Program
27
Work and Study Space on the Ground Floor The flexible work and study space on the ground floor, which also houses a coffee bar and art gallery, provide space for residents and community members to work and socialize. Studio Space for Artists Designated studio space provides a place to work close to home for resident artists. The spaces provide lots of natural night and ventilation to reduce exposure to toxic materials. Additionally, community members can take advantage of the ample artist studios and instruction and training by the artists themselves. Bike Room To reduce residents' carbon footprints, and encourage sustainable transport in the downtown, The Mill will provide an easily-accessible bike room for residents to securely store their bicycles. Programming of Wing’s Court + Custom House Square We propose a re-programming of the underutilized Wing’s Court and Custom House Square. The programming, which will be carried out in partnership with the city and the New Bedford Economic Development Council, includes farmer’s markets, artist markets, and rotating art exhibits. Ground Floor Work Space
28
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
TYPICAL UNIT PLAN Mixed Unit Types Within our target populations of artists, community college students, and downtown workforce, there is a range of housing needs. Some residents said that they would prefer to live with roommates, others wanted space for their young families and children, while others preferred to live alone in a smaller apartment. Our three unit types are designed to accommodate this range of need.
4
2
Acushnet Avenue
3
5
William Street
Legend 1. Studio XL 2. Shared Outdoor Seating Area 3. Artist Studios 4. Open to Below 5. Shared Media Room
1
Design + Program
29
Interior Unit Rendering for The Mill at Acushnet
30
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
Two Bedroom Units The two-bedroom units have a variety of features and amenities, including an island kitchen, ample closet space in both bedrooms, a dining room and desk space for residents to work. The bedrooms are also the same square footage, meaning that roommates don’t have to fight over the larger bedroom. These units are a mix of affordable and market-rate unit and designed for any of our target populations, including single artists, workers or community college students, as well as young professionals or empty nesters. These units are also ideal for students or workers with young children who need more space to raise their families outside of overcrowded family houses. . Full Massing of The Mill on Acushnet
890 Square Feet
31
Design + Program
One Bedroom Units The one-bedroom units contain many of the features of the two bedroom units, including an island kitchen, and a small dining room and living room space. There is also abundant storage space, with two closets in the apartment. These are a mix of affordable units, which are perfect for young couples who work downtown or attend BCC, and market-rate units, which are ideal for young workers at a slightly higher income threshold or empty nesters.
610 Square Feet
Studio Units The studio units contain similar features to the more spacious one and two-bedroom apartments, albeit in a more condensed way. They consist of a wraparound kitchen, a closet space, a coat rack, as well as a mini-dining room area. The studio apartments at the Mill on Acushnet provide space for artists to live and work on their art in the same space, or for single people who work downtown and don’t require a lot of space. The units are a mix of affordable and market-rate.
385 Square Feet Studio
490 Square Feet XL Studio
32
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
ROOF PLAN
4 1
Acushnet Avenue
2
3
William Street
Legend 1. Rooftop Sunroom 2. Exterior Trellis 3. Community Garden 4. Machine Room
Design + Program
33
Roof Garden at The Mill on Acushnet
34
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
LEED v4 for BD+C: New Construction and Major Renovation Project Checklist
Project Name: The Mill on Acushnet Date: March 22, 2019
SUSTAINABILITY The Development of the Mill on Acushnet will greatly serve the need for stable, quality and affordable housing. In line with NBDC's values, a key facet of development is the use and implementation of sustainable building methods throughout the building process. Important to note, is the use of Cross-Laminated Timber (CLT), an engineered wood panel with low environmental impacts. Additionally, the Mill will use cogeneration and a photovoltaic system to create reusable energy on site. As a LEED Gold certified building, The Mill on Acushnet will heavily program spaces to encourage positive pro-environmental behaviors amoung residents.
Y
?
N Credit
14
8 8
1
Integrative Process
0 Location and Transportation
16
12 0
0 Materials and Resources
13
Credit
LEED for Neighborhood Development Location
16
Y
Prereq
Storage and Collection of Recyclables
Required
Credit
Sensitive Land Protection
1
Y
Prereq
Construction and Demolition Waste Management Planning
Required
0
Credit
High Priority Site
2
4
Credit
Building Life-Cycle Impact Reduction
5
5
Credit
Surrounding Density and Diverse Uses
5
2
Credit
Building Product Disclosure and Optimization - Environmental
2
5
Credit
Access to Quality Transit
5
2
Credit
Building Product Disclosure and Optimization - Sourcing of Raw Materials
2
2
2
1
Credit
Bicycle Facilities
1
2
Credit
Building Product Disclosure and Optimization - Material Ingredients
1
Credit
Reduced Parking Footprint
1
2
Credit
Construction and Demolition Waste Management
1
Credit
Green Vehicles
1
6 8
0
0 Sustainable Sites
10
Y
0
Indoor 0 Environmental Quality
16
Prereq
Minimum Indoor Air Quality Performance
Required
Y
Prereq
Construction Activity Pollution Prevention
Required
Y
Prereq
Environmental Tobacco Smoke Control
Required
1
Credit
Site Assessment
1
2
Credit
Enhanced Indoor Air Quality Strategies
2
2
Credit
Site Development - Protect or Restore Habitat
2
0
Credit
Low-Emitting Materials
3 1 2
1
Credit
Open Space
1
1
Credit
Construction Indoor Air Quality Management Plan
3
Credit
Rainwater Management
3
2
Credit
Indoor Air Quality Assessment
0
Credit
Heat Island Reduction
2
1
Credit
Thermal Comfort
1
Credit
Light Pollution Reduction
1
9
0
0 Water Efficiency
1
0
Credit
Interior Lighting
2
0
Credit
Daylight
3
11
0
Credit
Quality Views
1
0
Credit
Acoustic Performance
1
Y
Prereq
Outdoor Water Use Reduction
Required
Y
Prereq
Indoor Water Use Reduction
Required
Y
Prereq
BuildingLevel Water Metering
Required
1
2
Credit
Outdoor Water Use Reduction
2
0
Credit
Innovation
5
4
Credit
Indoor Water Use Reduction
6
1
Credit
LEED Accredited Professional
1
2
Credit
Cooling Tower Water Use
2
Credit
Water Metering
1
1
2
0
0
1
15
Y
0
0 Energy and Atmosphere
Prereq
Fundamental Commissioning and Verification
33
Required
Y
Prereq
Minimum Energy Performance
Required
Y
Prereq
Building-Level Energy Metering
Required
Y
Prereq
Fundamental Refrigerant Management
Required
0
Credit
Enhanced Commissioning
6
8
Credit
Optimize Energy Performance
18
1
Credit
Advanced Energy Metering
1
1
Credit
Demand Response
2
3
Credit
Renewable Energy Production
3
1
Credit
Enhanced Refrigerant Management
1
1
Credit
Green Power and Carbon Offsets
2
0
0
1
68 8
0 Innovation
6
0 Regional Priority
6
Credit
Regional Priority: On-site renewable energy
1
Credit
Regional Priority: Building reuse maintain existing walls, floors and roofs
3
Credit
Regional Priority: Brownfield redevelopment
1
Credit
Regional Priority: Stormwater design - quality control
1
0 TOTALS
Possible Points:
Certified: 40 to 49 points, Silver: 50 to 59 points, Gold: 60 to 79 points, Platinum: 80 to 110
pursuing
LEED GOLD
CERTIFICATION
112
Design + Program
1
Legend 1. Solar Water Heating Panels 2. Underfloor Heating 3. High R-Value Insulation 4. Rainwater Collection 5. Car-Share 6. Bicycle Storage
S
W
3
2
35
Cogeneration Heat can be provided on site through the installation of a cogeneration system that uses left over steam from electricity generation. Energy Star Appliances + Water Saving Features + LED Lighting Equipping all units with both Energy Star Appliances and water saving methods for kitchens and bathrooms will not only reduce utility costs for residents but reduce the building's environmental impact. Additionally, dimable LED lighting , set on timers, throughout the site will reduce electricity demand. Pro-Environmental Programming To ensure long-term sustainability practices on site, it is important to shape residents' pro-environmental behaviors easily. Recycling and composting bins throughout the site and within each unit is the basis for reducing residents' landfill production. A secure bike storage room and accessibility to parks and nearby amenities will promote less cardependent activities.
6 5 4 Cross-Laminated Timber CLT is a prefabricated, lightweight wood panel that has superior acoustic, fire, seismic, and thermal performance. With low environmental impacts and design flexibility, CLT is advantageous to conventional building material.
Native Massachusetts Landscaping Stormwater retention landscaping across the site, including the roof, will use native Massachusetts plants to provide aesthetic and environmental benefits.
Photovoltaic System Rooftop solar PV will provide The Mill with usable solar energy to heat water and power electricity.
36
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
FINANCE OVERVIEW
Finance+Feasibility FINANCE OVERVIEW FUNDING SOURCES BUDGET AND CONSTRUCTION COSTS OPERATING PROFORMA SMART GROWTH PRINCIPLES PROJECT TIMELINE---ZONING
This is 40-unit mixed use(residential/retail) development project in New Bedford. The project will include the construction of a fivestory building on the existing site. It is a mix of 16 affordable rental units for residents up to 60% AMI, 24 market rate residential units, community space and retail space. The residential area will consist of 18 studio 1 units (385 sf, 6 affordable, 12 market-rate) with monthly rent of $1,063, 8 studio 2 units (410 sf, 2 affordable, 6 market-rate) with monthly rent of $1,132, 4 studio XL units (490 sf, 1 affordable, 3 market-rate) with monthly rent of $1,353, one-bedroom units (610sf, 4 affordable, 2 market-rate) with monthly rent of $1,449, and two-bedroom units (890 sf, 3 affordable, 1 market-rate) with monthly rent of $1,738. Construction for the project is likely to be scheuduled to commence in 2020 and be completed for delivery by 2023, with initial occupancy thereafter. Feasibility The net market rents are based on a comparative analysis with the market rates at the comparable properties in adjacent area. Adjustments were made for building design, unit amenities, site amenities and utility services included in the rent. Monthly rates for the property’s market-rated units range from $1,063 to $1,738. These rents are considered achievable as of strong location and sufficient market demand. The market for rental housing is stable in the neighborhood. The occupancy is reported to be nearly 100% for market-rate
properties and higher that 100% for affordable properties with extensive wait lists. Vibrant community programs, co-work space and well-proportioned rental units will support a favorable market position. The site is located within central downtown area in New Bedford, providing good access to regional transportation and amenities nearby. Affordability The Mill on Acushnet will create sustainable, high quality affordable housing in New Bedford’s downtown area. To create affordable housing opportunities for low-income families in New Bedford, the project offers monthly rent which range from $256 to $284 to residents that satisfy Section 8 program. By utilizing various affordability programs such as LIHTC, monthly rent for families at income levels of 60% AMI or below will be achieved with low financial burden. Affordable units will attract residents at income levels lower than the maximum allowable income limits and therefore would increase the potential resident pool for the units at this project.
37
Finance + Feasibility
Unit Mix 30%
60%
110%
TOTAL
3
3
12
18
Studio 2
2
6
8
Studio XL
1
3
4
Studio 1
80%
100%
1 bed
2
2
2
6
2 bed
2
1
1
4
TOTAL
7
9
24
40
18%
0 23%
0 0%
40%
0%
60% 60%
5%
leway on affordability caps
Allows continued affordability as residents who may experience an increase in income, can maintain residence in their unit.
Section 8 Monthly Rents
Studio 1 (1)
100%
110% SAFMR
30% AMI LIHTC
Section 8 Coverage
1,063.07
$256.00
807.07
Studio 2 (1)
1,132.10
$256.00
876.10
Studio XL (1)
1,353.00
$256.00
1,097.00
1 Bedroom (1.5)
1,449.25
$251.00
1,198.00
2 Bedroom (3)
1,738.00
$284.00
1,454.00
*Section 8 units generate 110% fair market rent but only charge residents 30% or residents' income.
38
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
FUNDING SOURCES+USES Conventional Loan and Equity Funding We estimate the project will support $4M in long-term debt based on 4.5%, 30 year amortization, and a minimum debt service coverage ratio of 1.15. Equity source assume We projected $5.4M in timely equity funding which consist of $5M in 4% LIHTC, $390,000 in MHIC Healthy Neighborhoods Investment Equity Fund(HNEF) and $40,000 in Utility Energy Star Rebate. Administered by Massachusetts Housing Investment Corporation (MHIC), HNEF is a $30 million private equity fund created to finance transformative, transit-oriented development of cities in Massachusetts. Soft Debt We layered $4.5M soft loan from various sources to increase the feasibility of our development.
Housing Stabilization fund and Commercial Area Transit Node Housing Loan. The project will apply for $500,000 on Affordable Housing Trust Fund, which offers funds available for the acquisition, development or preservation of affordable housing units, based on precedents for past awards received by similar projects in New Bedford. The project will apply for $800,000 maximum on DHCD Housing Stabilization Fund which offers funding for developments including units which serve households with incomes less than 80% AMI. It will also utilize Commercial Area Transit Node Housing Loan for $800,000.
Mass HOME fund is administered by the State of Massachusetts, The project will apply for $350,000 in line with the average allotment New Bedford has received in past years. It will also utilize New Bedford HOME for $500,000 Community Economic Development and New Bedford CPA for $250,000 based on Assistance Corporation (CEDAC) provides precedents of past awards. early stage capital for developers building affordable housing in Massachusetts. The MassHousing Workforce Housing Loan project will apply for $500,000 to utilize is offered for working age household and community-based Housing Loan from the preference is given for new units. In order corporation. to receive funding, 20% of units must be affordable for households with incomes less Department of Housing and Community than 80% AMI. As the project’s affordable units Development (DHCD) provides state funds amount 40%, we will apply for $1,600,000, through Affordable Housing Trust Fund, $1,000 per unit.
39
Finance + Feasibility
Project Sources & Uses of Funds
Permanent Sources
40 units
Total $
35,287 GSF
Per GSF
Per Unit
% of TDC
Permanent Uses
Total $
Per GSF
Per Unit
% of TDC
Equity LIHTC 4% MHIC Healthy Neighborhoods Investment Utility Energy Star Rebate
$5,033,430.38 $391,727.78 $40,000.00
$142.64 $125,835.76 $11.10 $9,793.19 $1.13 $1,000.00
Conventional Financing MHFA Permanent Loan
Acquisition 32% Costs 3%Hard Costs 0%Soft Costs Financing Costs Reserves 26%Developer Fee
$4,084,626.27
$115.76 $102,115.66
CEDAC Community Based Housing Loan $600,000.00 DHCD Affordable Housing Trust Fund Loan $500,000.00 DHCD Housing Stabalization Fund Loan $800,000.00 DHCD Commercial Area Transit Node Housing Loan $800,000.00 FHLBB Subordinate Loan $500,000.00 Massachusetts HOME Fund $350,000.00 MassHousing Workforce Housing Loan $1,200,000.00 New Bedford CPA $250,000.00 New Bedford HOME $500,000.00 NeighborWorks Grant $50,000.00 Deferred Developer Fee1 $569,326.88
$17.00 $15,000.00 $14.17 $12,500.00 $22.67 $20,000.00
4% 3% 5%
$22.67 $14.17 $9.92 $34.01 $7.08 $14.17 $1.42 $16.13
5% 3% 2% 8% 2% 3% 0% 4%
$850,000.00 $11,767,053.31 $1,121,352.67
$24.09 $21,250.00 $333.47 $294,176.33 $31.78 $28,033.82
5% 75% 7%
$440,000.00 $175,000.00 $1,315,705.33
$12.47 $11,000.00 $4.96 $4,375.00 $37.29 $32,892.63
3% 1% 8%
$15,669,111.31
$444.05 $391,727.78
100%
Soft Debt
Total Sources
$15,669,111.31
$20,000.00 $12,500.00 $8,750.00 $30,000.00 $6,250.00 $12,500.00 $1,250.00 $14,233.17
$444.05 $391,727.78
1To be paid out of excess cash flow subsequent to stabilization of the Project. 2Based on draft development budget
100%Total Uses
40
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition Description
Total Cost
$/unit
$/TRSF
%
Depreciable
Amortize
Non-Depr.
Historic RTC
LIHTC 4%
LIHTC 9%
Acquisition / Site Imp. Costs Build Acquisition
$200,000.00
5,000
8.77
1%
Land Acquisition
$450,000.00
11,250
19.73
3%
Demolition
$150,000.00
3,750
6.58
1%
$150,000.00
$-
-
0.00
0%
$-
$50,000.00
1,250
2.19
0%
$850,000.00
21,250
37.26
5%
$9,703,860.29
242,597
425.39
$485,193.01
12,130
21.27
Retail Construction
$1,568,000.00
39,200
68.74
10% $1,568,000.00
Permits Total Hard Costs
$10,000.00 $11,767,053.31
250 294,176
0.44 515.83
0% $10,000.00 75% $11,767,053.31
$250,000.00
6,250
10.96
2%
$250,000.00
$250,000.00
$250,000.00
$250,000.00
$80,000.00
2,000
3.51
1%
$80,000.00
$80,000.00
$80,000.00
$80,000.00
$-
-
0.00
0%
$-
$-
$-
$-
$15,000.00
375
0.66
0%
$15,000.00
$15,000.00
$15,000.00
$15,000.00
$20,000.00 $365,000.00
500 9,125
0.88 16.00
0% 2%
$20,000.00 $365,000.00
$-
$20,000.00 $365,000.00
$20,000.00 $365,000.00
$20,000.00 $365,000.00
$75,000.00
1,875
3.29
0%
$75,000.00
$-
-
0.00
0%
$-
$75,000.00
1,875
3.29
0%
$- $75,000.00
$-
$-
$-
$-
$20,000.00
On-Site Improvement
TOTAL DEVELOPMENT COSTS Roughly 75% of total development costs are construction costs, with 60% attributed to direct construction.
$275K development cost per unit
Off-Site Improvement Total Acquisition / Site Imp. Costs
$200,000.00
$200,000.00 $450,000.00 $150,000.00
$150,000.00
$150,000.00
$-
$-
$350,000.00
$150,000.00
$50,000.00 $350,000.00
$- $500,000.00
$150,000.00
Hard Costs Direct Construction Construction Contingency
62% $9,703,860.29 3%
$9,703,860.29 $9,703,860.29
$485,193.01
$485,193.01
$-
$-
$485,193.01
$485,193.01
$10,000.00 $10,000.00 $10,000.00 $495,193.01 $10,199,053.31 $10,199,053.31
Construction Finance Construction Loan Interest Construction Loan Fee Construction Origination Appraisal Title and Recording Total Construction Finance
$-
Permanent Finance Permanent Loan Fees Other Total Permanent Finance
Soft Costs Survey
$20,000.00
500
0.88
0%
$20,000.00
$20,000.00
$20,000.00
Architect & Engineering
$588,352.67
14,709
25.79
4%
$588,352.67
$588,352.67
$588,352.67
$588,352.67
$200,000.00
5,000
8.77
1%
$200,000.00
$200,000.00
$200,000.00
$200,000.00
Consultant
$20,000.00
500
0.88
0%
$20,000.00
$20,000.00
$20,000.00
$20,000.00
Market Study
$20,000.00
500
0.88
0%
$20,000.00
$20,000.00
$20,000.00
$20,000.00
Environmental
$20,000.00
500
0.88
0%
$20,000.00
$20,000.00
$20,000.00
$20,000.00
Insurance
$35,000.00
875
1.53
0%
$35,000.00
$35,000.00
$35,000.00
$35,000.00
Certifications
$55,000.00
1,375
2.41
0%
$55,000.00
$55,000.00
$55,000.00
$55,000.00
Property Taxes
$30,000.00
750
1.32
0%
$30,000.00
$30,000.00
$30,000.00
$30,000.00
Real Estate Attorney
Syndication Expense
$8,000.00
200
0.35
0%
Soft Cost Contingency
$100,000.00
2,500
4.38
1%
Rentup Expense Total Soft Costs
$25,000.00 $1,121,352.67
625 28,034
1.10 49.16
0% 7%
Operating Reserves Total Reserves
$175,000.00 $175,000.00
4,375 4,375
7.67 7.67
1% 1%
Developer Overhead
$1,315,705.33
32892.63
57.68
8%
Total Development Costs
$15,669,111.31
391727.78
686.89
$8,000.00 $100,000.00
$100,000.00
$100,000.00
$100,000.00
$240,000.00
$25,000.00 $- $33,000.00
$240,000.00
$240,000.00
$240,000.00
$240,000.00
$175,000.00 $- $208,000.00
$240,000.00
$240,000.00
$240,000.00
Reserves
$ / Total Square Footage
$444.05
$1,315,705.33 $1,315,705.33 $1,315,705.33
100% $12,962,053.31 $75,000.00 $741,000.00 $2,805,898.35 $12,709,758.64 $12,509,758.64
41
Finance + Feasibility Cash Flow Analysis
$791 1 Bedroom Unit at 60% AMI
$1,449 1 Bedroom Unit at 110% AMI
Residential Gross Income Commercial Gross Income Laundry Income Vending Machine Income Total Vacancy Total Credit/Collection Loss Effective Gross Income
Year 1 Year 2 Year 3 Year 4 $510,986.35 $521,206.08 $531,630.20 $542,262.80 $149,872.00 $153,618.80 $157,459.27 $161,395.75 $10,608.00 $10,820.16 $11,036.56 $11,257.29 $2,500.00 $2,550.00 $2,601.00 $2,653.02 $(48,030.12) $(49,103.12) $(50,200.40) $(51,322.50) $(5,109.86) $(5,212.06) $(5,316.30) $(5,422.63) $620,826.37 $633,879.85 $647,210.33 $660,823.74
Year 5 Year 20 $553,108.06 $744,410.63 $165,430.65 $239,592.90 $11,482.44 $15,453.85 $2,706.08 $3,642.03 $(52,470.00) $(73,159.47) $(5,531.08) $(7,444.11) $674,726.15 $922,495.83
Operating Expenses (3% Annual Growth) Administrative Property Management Fee Admin. Payroll, Taxes and Benefits Property Manager Salary Maintenance Staff Salary Accounting Legal Advertising & Marketing Office Expenses
$31,041.32 $26,700.00 $52,000.00 $37,000.00 $10,000.00 $9,000.00 $8,000.00 $6,000.00
Utilities Electricity Natural Gas Water and Sewer
$17,500.00 $18,025.00 $14,000.00 $14,420.00 $30,000.00 $30,900.00
$31,972.56 $27,501.00 $53,560.00 $38,110.00 $10,300.00 $9,270.00 $8,240.00 $6,180.00
$32,931.73 $33,919.69 $28,326.03 $29,175.81 $55,166.80 $56,821.80 $39,253.30 $40,430.90 $10,609.00 $10,927.27 $9,548.10 $9,834.54 $8,487.20 $8,741.82 $6,365.40 $6,556.36
$34,937.28 $30,051.09 $58,526.46 $41,643.83 $11,255.09 $10,129.58 $9,004.07 $6,753.05
$54,431.14 $46,818.61 $91,182.31 $64,879.72 $17,535.06 $15,781.55 $14,028.05 $10,521.04
$18,565.75 $14,852.60 $31,827.00
$19,696.40 $15,757.12 $33,765.26
$30,686.36 $24,549.08 $52,605.18
$19,122.72 $15,298.18 $32,781.81
Maintenance Repairs Security Grounds Painting & Decorating Cleaning & Janitorial Trash & Snow Removal
$10,000.00 $3,528.68 $5,293.01 $4,234.41 $1,764.34 $10,000.00
$10,300.00 $3,634.54 $5,451.81 $4,361.44 $1,817.27 $10,300.00
$10,609.00 $3,743.57 $5,615.36 $4,492.29 $1,871.79 $10,609.00
$10,927.27 $3,855.88 $5,783.82 $4,627.06 $1,927.94 $10,927.27
$11,255.09 $3,971.56 $5,957.33 $4,765.87 $1,985.78 $11,255.09
$17,535.06 $6,187.56 $9,281.33 $7,425.07 $3,093.78 $17,535.06
Reserve
$18,000.00
$18,540.00
$19,096.20
$19,669.09
$20,259.16
$31,563.11
Taxes & Insurance Real Estate Taxes Property Liability Insurance Total Expenses Net Operating Income
NOI per Unit
$30,000.00 $32,575.38 $33,226.89 $33,891.43 $34,569.25 $46,525.66 $30,000.00 $30,600.00 $31,212.00 $31,836.24 $32,472.96 $43,704.34 $354,061.76 $366,058.99 $376,409.01 $387,056.89 $398,011.32 $605,869.07 $266,764.61 $267,820.86 $270,801.32 $273,766.85
$6,669.12
$6,695.52
$6,770.03
$6,844.17
$276,714.83
$316,626.76
$6,917.87
$7,915.67
Projected Debt Service Reserve Depreciation DSCR
$(231,969.23) $(231,969.23) $(231,969.23) $(231,969.23) $(231,969.23) $(231,969.23) $18,000.00 $18,540.00 $19,096.20 $19,669.09 $20,259.16 $31,563.11 $(324,051.33) $(324,051.33) $(324,051.33) $(324,051.33) $(324,051.33) $(324,051.33) $1.15 $1.15 $1.17 $1.18 $1.19 $1.36
Taxable Income
$(271,255.95) $(269,659.70) $(266,123.04) $(262,584.62) $(259,046.57) $(207,830.69)
Tax Payable After Tax Cash Flow
$498,733.84 $499,790.09 $502,770.55 $505,736.08 $508,684.05 $548,595.99
OPERATING PRO FORMA We project the success of The Mill on Acushnet based on reasonable assumptions.
Grant We will apply for $5.5M grant from Federal Home Loan Bank of Boston and NeighborWorks. Federal Home Loan Bank of Boston (FHLBB) Grant is available to rental housing projects participating in the Affordable Housing Development Competition in which at least 20 percent of the units are for households with incomes less than 50% AMI. The project will apply for the full $500,000 of eligible funding. NeighborWorks Grant is administered by nonprofit organization NeighborWorks, which provides funding and technical assistance to affordable housing developers. As New Bedford developer is a NeighborWorks affiliate, we will apply for $50,000 of eligible funding.
42
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
ZONING We are seeking to build modern, multi-family affordable housing that is suited to a bustling downtown, and the one thing that kind of a project needs is density. At first glance, New Bedford’s zoning ordinances wouldn’t seem to support this kind of dense building. The largest kind of residential building that is allowed asof-right in a Mixed-Use Business (MUB) zone is a 3-story townhouse, and the minimum lot size is a spacious 15,000 sq. ft. We, on the other hand, are proposing a 6-story building on a lot size at 9,805 sq. ft. The Mill on Acushnet needs the density we have proposed in order to provide the working spaces and affordable housing that the downtown and those who wish to call it home want and need.
4-story garden apartments— in the MUB zone, it expressly allows the construction of 6-story mixed-use buildings subject to receiving a Special Permit from the Planning Board. Similarly, given our site’s location in the Downtown Business Overlay District, our project is eligible for numerous Special Permits that will allow us to develop dense residential spaces in the downtown, including a reduction in the density and parking spaces requirements.
We are confident that the Planning Board and Zoning Board of Appeals will approve our project’s Special Permits. Based on our conversations with Tabitha Harkin, New Bedford’s city planner, we know that the Special Permit process is a collaborative one between A closer study of the zoning ordinances, the developer and the relevant institutional however, shows that The Mill fits well within stakeholders. Moreover, the Special Permit the city’s vision for the downtown. Whereas does not require a showing of any substantial the ordinances prohibit any residential hardship to the landowner, like a variance buildings higher than six stories—and even does. Instead, Special Permits are granted
based on a determination that the benefit the city and neighborhood will receive from the proposed use of the site will outweigh any potential adverse effects. Given the extensive programming and quality housing The Mill will provide to downtown New Bedford, this standard is easily satisfied. Finally, based on our conversations with Mayor Jon Mitchell and our sponsor’s close relationship with New Bedford’s various institutional stakeholders, we believe our project will garner strong political support. As precedent for approval, we can look to another of our sponsor’s New Bedford projects. Located around the corner at 117 Union Street, the multi-family project has already received approval despite having a lot size of only 8,200 sq. ft. and offering only one parking space for residents.
Dimensional Regulation
Current
Proposed
Relief Needed
Minimum Lot Size
15,000 Square Feet
9,805 Square Feet
Yes
Density of Dwelling Units / Lot
1 per 1,000 Square Feet
Varies
Yes
Lot Frontage
0
0
No
Height of Buildings
100 Feet or 7 Stories
68.25 Feet or 6 Stories
No
Front Yard
0
0
No
Side Yard
0
0
No
Rear Yard
20
0
Yes
Parking Spaces
2 per Dwelling Unit
4 Shared Vehicle Spaces
Yes
Finance + Feasibility
43
Street view of The Mill from Acushnet Avenue
44
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
Our proposal encourages a Mix of Land Uses The Mill will provide a variety of transportation through a public commercial ground floor, and choices including ample bicycle storage, an artists studios and makerspaces. electric car-share program, convenient off-site parking, all in a highly-walkable locale. We take advantage of compact building design through small, well-designed units, with We strive to make development decisions an emphasis on shared space throughout the predictable, fair and cost effective through building. Finally, we encourage community and We create a range of housing opportunities stakeholder collaboration in development and choices with three different unit decisions and are excited about the sustained configurations for residents to choose from. engagement opportunities that the project holds with Bristol Community College and the The Mill will create walkable neighborhoods rest of Downtown New Bedford. in Downtown New Bedford through the neighborhood ammenities it provides, and its connection to lively neighborhood park and green spaces. This project will also foster distinctive, attractive communities with a strong sense of place through its connection to New Bedfords industrial past and vibrant arts community. We strive to preserve open space, natural beauty and critical environmental areas through our connection to existing parks, and our rooftop views of both Custom House Square and the Downtown Waterfront. Our effort to strengthen and direct development towards existing communities stems from our hollistic study of the area through both quantitative and qualitative methods. Our target demographics include already robust artist and student communities.
40 UNITS on a double-loaded corridor
in a 37 foot wide building
SMART GROWTH PRINCIPLES
Our innovative floor plan allowed us to fit 40 units in a double-loaded corridor that in total, has a width of 37 feet. By turning units on their "sides", we achieved ample access to sun and light in all units. Most importantly, this innovation allowed us to reach optimal density on a compact site by keeping under the classification of a high-rise building - which would require increased egress requirements and cost implications.
45
Finance + Feasibility
PROJECT TIMELINE PHASE
PROJECT WEEK:
1
2/3 Lots Under Dev. Ownership
Site Acquisition
Developor/BCC Negotiations Stakeholder Engagement Community Engagement Programming Comp. Permit Review
2
Predevelopment
Special Permit Application Schematic Design Design Development Construction Documents Contractor Selection Permitting Deferred Developer Fee Federal LIHTC Equity State LIHTC Equity FHLB Affordable Housing Construction Loan Section 8 Vouchers
3
Funding
Membership Unit Sales CEDAC Community Based Housing Loan DHDC Loans Mass HOME Fund Mass Workforce Housing Loan New Bedford CPA/HOME NeighborWorks Grant Site Work/Foundation
4
Construction
Building Construction Certificate of Occupancy
5
Year 0
DETAILS
Absorption
Residential Occupancy
Year 1 D
J
F
M
A
M
J
J
Year 2 A
S
O
N
D
J
F
M
A
M
J
J
Year 3
J
F
M
A
M
J
J
A
S
O
N
A
S
O
N
D
J
F
M
A
M
0
1
2
3
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47
J
J
A
S
O
N
D
46
THE MILL ON ACUSHNET New Bedford, Massachusetts | 2019 FHLB Boston Affordable Housing Development Competition
LOOKING FORWARD
Conclusion ARTS + CULTURE OWNERSHIP CIVIC ENGAGEMENT ECONOMIC DEVELOPMENT
Downtown New Bedford is home to a vibrant arts community, waterfront access, and a history of inclusivity and diversity. It’s also home to a severely aging housing stock that isn’t at pace with the city’s plans for economic revitalization. To address these challenges, the city is engaged in a large-scale downtown revitalization effort. New Bedford recently published their first arts and culture plan (New Bedford Creative: Our Art, Our Culture, Our Future plan) and are developing their 2020 Master City Plan. They are proposing a 2022 implementation of a Boston commuter line and were awarded four Opportunity Zones along the riverfront. The affordable housing provided by the Mill on Acushnet will play a key role in the economic redevelopment of New Bedford. The Mill not only grounds itself in New Bedford’s initiatives around arts and culture, but it also serves as a home to the drivers of economic development in the downtown area -- students, the downtown workforce, and local artists. We believe the design of the Mill serves a model for equitable and inclusive development that focuses on community. By creating co-working, gallery and study spaces that are accessible to our residents as well as the entire downtown population, the Mill will become a hub for community engagement and entrepreneurship. These design choices and our commitment to build for the local community will go a long way in retaining young people, attracting investment and promoting sustainable
economic development downtown area.
across
the
Former mill towns like New Bedford are not unlike many cities across the United States that are suffering from postindustrial challenges. The Mill on Acushnet honors this history in its namesake -- but also provides a glimpse into the bright future of this vibrant city.
Conclusion
47
BIBLIOGRAPHY “A City Master Plan: New Bedford 2020.” 2010. City of New Bedford. h t t p : / / 3 t 8 4 8 o 3 0 i ke 2 1 1 t 7 x 1 1 n z g x i . wpengine.netdna-cdn.com/ planning/wp-content/uploads/ sites/46/NewBedford2020_ ACityMasterPlan_2010.pdf.
Froman, Michael. 2017. “Urban Redevelopment: SouthCoast Today. August 3, 2017. https://www. New Bedford.” Union College, June. https:// southcoasttoday.com/news/20170803/fromdigitalworks.union.edu/theses/31. explorers-to-immigrants-to-portuguese-andproud. “History & Culture: Places.” 2018. National Park Service: New Bedford Whaling National “New Bedford Artists.” n.d. New Bedford Whaling Historical Park. August 15, 2018. https://www. Museum. Accessed April 1, 2019. https://www. nps.gov/nebe/learn/historyculture/places. whalingmuseum.org/learn/research-topics/ htm. arts-literature-city.
“Boston Compact Living Pilot.” 2018. City of Boston. https://www.boston. gov/sites/default/files/compact_living_ “History & Culture: The Artists.” 2018. National guidelines_181012.pdf. Park Service: New Bedford Whaling National Historical Park. August 24, 2018. https:// “Bristol Community College: Fact Sheet www.nps.gov/nebe/learn/historyculture/ 2018.” 2018. http://www.bristolcc.edu/ literatureart.htm. media/bcc-website/2017buildimages/ documents/Fact,Sheet,2018,printer,frien “History and Culture: Underground Railroad.” dly.pdf. 2018. National Park Service: New Bedford Whaling National Historical Park. April 16, “City of New Bedford’s Proposal for 2018. https://www.nps.gov/nebe/learn/ Amazon HQ2.” 2018. http://static. historyculture/undergroundrailroad.htm. djlmgdigital.com.s3.amazonaws.com/ nbt/southcoasttoday/graphics/pdf/ Hollander, Justin. 2018. An Ordinary City. Cham, NewBedford_AmazonH2Q_FINAL_opt.pdf. Switzerland: Palgrave Macmillan. Cohen, Joe. 2009. “Tour of Underground Railroad Landmarks Reveals City’s Abolitionist History.” SouthCoast Today. February 15, 2009. https://www. southcoasttoday.com/article/20090215/ NEWS/902150370.
n.d. New Bedford Whaling Museum. Accessed April 1, 2019. https://www.whalingmuseum.org/ learn/research-topics/citys-evolution. Urbon, Steve. 2017. “Explosion of Murals Marking New Bedford as Arts Mecca.” SouthCoast Today. December 2, 2017. https:// www.southcoasttoday.com/news/20171202/ explosion-of-murals-marking-new-bedfordas-arts-mecca.
“New Bedford Black History Trail.” n.d. New Bedford Historical Society. Accessed April 2, U.S. Census Bureau. 2013. Selected housing 2019. http://nbhistoricalsociety.org/historic- characteristics, 2013-2017 American trails/. Community Survey 5-year estimates. Accessed April 1, 2019. https://factfinder.census.gov/ “New Bedford Creative: Our Art, Our Culture, faces/tableservices/jsf/pages/productview. Our Future.” 2018. New Bedford Economic xhtml?pid=ACS_11_5YR_DP04. Development Council. http://www.nbedc. o r g / w p / w p - c o n t e n t / u p l o a d s / 2 0 1 8 / 1 2 / “Whaling Industry and Portuguese Immigration NewBedfordArtsandCulturePlan.pdf. Centered in New Bedford, Massachusetts.” n.d. Library of Congress. Accessed April 1, 2019. Reynolds, Sarah. 2014. “Growing Old in https://www.loc.gov/rr/hispanic/portam/ Portuguese New Bedford.” WCAI. September 16, bedford.html. 2014. https://www.capeandislands.org/post/ growing-old-portuguese-new-bedford.
Kifner, John. 1975. “Portuguese of New Bedford Keep Identity.” The New York Times, August 5, 1975, sec. Archives. https://www.nytimes. com/1975/08/05/archives/portuguese-ofnew-bedford-keep-identity.html.
Robinson, Matt. 2018. “A New Generation of New Bedford Artists Has Opened Galleries, Living, and Work Spacessmar SouthCoast Today. January 6, 2018. https://www.southcoasttoday. com/news/20180106/new-generation-of-newMassDevelopment. 2017. “New Bedford TDI bedford-artists-has-opened-galleries-livingPurchase Street Placemaking.” June 28. and-work-spaces.
“Cross-Laminated Timber (CLT).” n.d. American Plywood Association. Accessed April 3, 2019. https://www.apawood.org/ Medeiros, Peggi. 2017. “From Explorers “The City’s Evolution–From Old Dartmouth to cross-laminated-timber. to Immigrants to Portuguese and Proud.” New Bedford, Whaling Metropolis of the World.”
THE MILL ON ACUSHNET