Developer seeks $803,522 to convert Mass Mills boiler building into mixed‑income housing
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Summary
Mahlon Management requested $803,522.25 from CPA funds to support conversion of the boiler building at Mass Mills into 79 mixed‑income units, citing structural unknowns, asbestos in basements, and a complex capital stack that has shifted the project to focus on the boiler building only.
A representative of Mahlon Management described plans to convert the former Mass Mills boiler building into 79 mixed‑income housing units and requested $803,522.25 in CPA funds to help fill financing gaps.
The presenter said the overall development budget submitted with the application exceeds $60 million and that the project team has secured some awards, including HDIP tax credits and prior CPC awards, but still needs local CPA support to make the capital stack work. The developer described technical challenges: limited interior floors in several mill buildings, basements with asbestos and other hazardous materials, and variable riverbed conditions that complicate foundation and pricing assumptions.
The presenter said the project originally contemplated fully affordable housing but pivoted to a mixed model (about 80% market rate, 20% affordable) after new private equity and MassHousing financing opportunities emerged; the change reflected available capital sources and a long queue for low‑income tax credits. Local contractor Aberthaw Construction is involved in preconstruction services and the team expects a 30% CD set imminently.
Committee members pressed on affordability and parking; the presenter confirmed 20% of units will be affordable (roughly under 20 units) and said parking will be absorbed into the campus with first‑come, first‑served spaces and leased spots anticipated for new residents. No vote was taken; committee deliberations are scheduled for Jan. 29.
