Worcester Affordable Housing Trust Fund awards $1.358M to five projects, delays full Colony on Grove funding pending HUD review

The Worcester Affordable Housing Trust Fund Board of Trustees on June 24 voted to award a total of $1,358,362 in conditional funding to five housing projects while declining one application that lacked required documentation.

Trustee action followed staff presentations and hours of trustee deliberation over how to split about $1.36 million in available Community Preservation Act and ARPA-linked funds among applicants that collectively requested roughly $2.42 million. Janette, the trust fund staff member overseeing the funding round, told trustees the board could attach conditions to any award and that the HUD Office of Inspector General review had delayed one project’s closing. She recommended preserving prior commitments through Aug. 15, 2026 while closing activities continue.

The board approved the following conditional awards and requirements: a $100,000 conditional commitment to Colony Retirement Homes for Colony on Grove Phase 3 (conditioned on closing of phases 1 and 2 before contracting); $600,000 to Lakeside Developer LLC for Lakeside Apartments Phase 3 (Trustee Perez recused); $72,730 to ABG Real Estate LLC for Southwestern Urban Infill Housing (the full amount requested, contingent on submission of full sources-and-uses before contracting); and $585,632 to W Loss Realty Trust for the Haywood Boot and Shoe Company rehabilitation at 70 Winter Street, all subject to standard and project-specific conditions recommended by staff. The board also voted not to award funds to the 51 Illinois Street proposal, citing missing zoning and financing documentation.

Trustee scrutiny focused on project readiness, documentation and value for public dollars. Janette summarized scoring results from the spring round, with Colony Grove Phase 3 receiving the highest average score (84.2) and 51 Illinois the lowest among eligible applicants (68.5). She said roughly $1.36 million was available and reminded trustees that scoring is a tool to inform — not dictate — decisions.

During the discussion, Craig Nicholson, representing Colony on Grove, said the local request was small relative to the project’s total budget but that a written conditional commitment would strengthen the project’s application in an upcoming HLC funding round: “my biggest concern at this exact point is that I have a commitment to go into my funding round with HLC… I would like to be able to come back in another round to bolster the amount. But really a big thing for me is to have a defined and written commitment conditional for our application,” he said. The board subsequently moved to provide a $100,000 conditional award and to require that phases 1 and 2 be closed before contracting for phase 3.

Eliza Data of E3 Development and partner Rich Mazaki told trustees Lakeside Phase 3 is part of a phased redevelopment; phases one and two are under construction and the team expects Phase 3 construction in 2027. They said a reduced local award would likely require finding other sources but could be manageable. The board approved $600,000 to Lakeside; Trustee Perez was recused from that vote.

Trustees pressed ABG Real Estate LLC (Southwestern Urban Infill) on a notably low total development cost for three units ($292,730). Peter, representing the developer, said cost savings stemmed from no land acquisition, limited legal fees and self-managed construction and offered to provide additional backup documentation. The board voted to fund the project the full requested amount — $72,730 — but required full sources-and-uses prior to contracting.

Todd Carter of the Beantown Companies, representing the Haywood Boot and Shoe rehabilitation, told trustees the team could meet accessibility (UFAS/common-area) requirements and that trust fund dollars were necessary for the project to proceed: “without trust fund dollars of any kind, we will not be able to move forward with the project,” he said. The board approved $585,632 for that project, subject to standard conditions.

The application for 51 Illinois Street drew sustained trustee concern. Staff said submitted materials referenced a zoning approval and a lodging-house conversion, but trustees and staff had not received documentation demonstrating the project is approved as the proposed eight-unit apartment configuration. Staff also noted missing construction loan commitments and equity documentation; trustees voted not to award funds at this time and encouraged the applicant to return with required approvals and funding evidence in a future round.

Trustees used staff’s spreadsheet to model multiple allocation scenarios, and several members emphasized that partial awards can be coupled with clear conditions — for example, requiring closing on earlier phases, submitting full sources-and-uses, or third-party cost review — before contracting. The board unanimously approved the set of awards in roll-call votes after deliberation; Trustee Perez was recorded as recused from the Lakeside vote.

Staff said it will prepare conditional commitment letters, coordinate outstanding due diligence items with applicants and provide periodic updates to trustees on financial closings, construction milestones and compliance as projects progress.

The board adjourned after completing the funding decisions.