Project Application
COMMUNITY PRESERVATION
PROJECT APPLICATION COVER SHEET
I: Project Information
Project Title: Christopher Heights Affordable Assisted Living Project at Village Hill
Project Summary: Create 43 units of affordable assisted living in a new 83-unit
assistance living residence at Village Hill. The units will be available to low-income
seniors earning 60% of area median income or less, and will carry an 80 year
affordable housing restriction. The remaining 40 units will be priced below the
market rates for typical assisted living units in Northampton. The project will fill a
need for affordable assisted living and senior housing in Northampton. These funds
will augment CPA funds already awarded.
Estimated start date: Spring, 2014 Estimated completion date: Fall, 2016
CPA Program Area (check all that apply):
� Open Space � Historic Preservation
X Community Housing � Recreation
II: Applicant/Developer Information
Contact Person and or/primary applicant: Walter Ohanian, Managing Director,
Grantham Group LLC, and Northampton Mayor David J. Narkewicz
Property Owner (if applicable): Hospital Hill, LLC
Organization: City of Northampton, on behalf of the Grantham Group LLC
Mailing Address: 210 Main Street, City Hall, Northampton MA, 01060
303 Congress Street, Ste 2, Boston MA, 02210
Daytime phone #: 413-587-1249 Fax #: 413-587-1275
E-mail address & Website: mayor@northamptonma.gov, wohanian@grantham-
group.com
III: Budget Summary
Total budget for project: $13,400,000
CPA funding request: $130,000
CPA request as percentage of total budget: <1%
Applicant’s Signature: ____________________________
Date Submitted: February 3, 2014____________
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Narrative
Project Description:
Christopher Heights of Northampton will be an 83-unit, 3-story assisted living facility,
located on a 1.3 acre site at Village Hill, the former Northampton State Hospital. 52%
of the units in the development will be affordable to seniors earning 60% of Area
Median Income (AMI) or less. These units will be restricted for 80 years through an
affordable housing deed restriction jointly held by DHCD and the City.
Christopher Heights is the assisted living component of the master plan for Village Hill,
and the Grantham Group, LLC was selected by MassDevelopment as the developer after
an extended search. Christopher Heights will have an 80-year lease for the property.
$120,000 in CPA funds have already been awarded for this project – first to offset the
City’s share of a TIF agreement, and then, through an amendment, directly to the
developer. The TIF has been withdrawn, and the City’s only commitment to the project
is through CPA funds. The additional funds requested will be used to show the City’s
high level of support for the project in the next round of tax credit applications.
Units Affordable to
17 30% AMI
26 60% AMI
40 Not restricted, but likely affordable to 85±% AMI
83 TOTAL, with 43 affordable
The project serves many of the criteria outlined in the Community Preservation Plan.
General Criteria:
Contributes to the preservation of Northampton’s unique character, boosts
the vitality of the community, and enhances the quality of life for its
residents
Northampton needs additional assisted living residences, especially for those with
limited resources. This housing provides services for residents who can no
longer live independently but do not yet need a nursing home. Allowing seniors
to remain independent is more cost-effective than traditional long-term care
facilities, and provides an increased quality of life. Demand within Northampton
outpaces supply, especially for those with limited resources. Of the 2,864
persons in Northampton over the age of 65, 831 are non-institutionalized with a
disability or independent living difficulty, and could benefit from a project such as
this.
The project will provide more Northampton residents the opportunity to move to an
assisted living facility without leaving the City. The project will also contribute to
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the commercial component of Village Hill, and create approximately 40 new (full
time equivalent) jobs.
Addresses recommendations contained in the Sustainable Northampton
comprehensive plan and/or the Northampton Open Space and
Recreation Plan 2005-2010, Open Space, Recreation, and Mixed Use
Trail Plan 2011-2017 or is consistent with other city-wide planning
efforts that have received broad-based scrutiny and input and can
demonstrate wide community support
The location of Christopher Heights is consistent with the land use goals of
Sustainable Northampton. The project represents a mixed-use development in a
densely-developed area close to downtown, consistent with the future land use
map. It will be the only assisted living residence within walking distance of
downtown, and the only one part of a larger mixed-use development. The
project will also further the plan’s housing goals to create housing that meets the
needs of special needs, low and moderate-income residents, and the elderly.
The Plan also contained specific strategies to meet these goals, including:
Make city funding available for the ‘local match’ funding needed by affordable
housing developers;
Create incentives for private housing developers to act on housing program goals;
and
Look beyond traditional marketplace models to create affordable housing;
all of which the Project will employ.
Serves under-served populations
There are very few affordability-restricted assisted living facilities in Western
Massachusetts.. The project will create an opportunity for low and moderate-
income residents to remain in Northampton even as life circumstances change.
Places high value on sustainable, ecologically responsible, energy-
conserving structures, locations, and materials; demonstrates that the
project minimizes the ecological footprint
The project will be located close to downtown in a master-planned, transit-oriented
neighborhood. The facility is also planned to be LEED certified.
Receives endorsement by community groups, municipal boards and/or
departments
The project is endorsed by the Mayor, Housing Partnership, Council on Aging,
Senator Stan Rosenberg, and Congressman Richard Neal. It has already
received necessary permits from the Planning Board.
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Leverages additional public and/or private funds, or demonstrates that
other funding sources are not readily available or sufficient
The project’s total construction cost is $13,400,000. The developer has applied for
$5,000,000 in federal low income housing tax credits in aniticpation of yielding
$4,600,000. In addition is has applied for $1,125,000 in state low income
housing tax credits in anticipation of yielding $765,000. Private funding will
comprise the remainder.
Demonstrates a high benefit/cost value
The project is requesting a total of $250,000 in CPA funds, which will result in
affordability restrictions on 43 assisted living units, for a CPA unit cost of $5,813.
Even with the additional $130,000 being requested this round, this would be the
lowest per-unit cost of any CPA affordable housing project to-date, and would
result in more new affordable units than the CPA has created since it was
passed. The CPA has contributed to the creation of 39 new affordable units in
five different projects in Northampton since its inception. The CPA contributions
to those projects totaled $1,145,000, for a cumulative per-unit cost of $29,358.
Comparison Table: Christopher Heights Unit Cost and Creation vs. Prior CPA
Projects
Cost per Unit Total CPA Cost Number of Units
ALL new affordable units $29,358 $1,145,000 39
from past CPA projects
Christopher Heights $ 5,813 $ 250,000 43
Can be implemented expeditiously and within budget
Grantham Group, LLC has prior experience in constructing four similar facilities
throughout the Commonwealth, and will be ready to begin construction as soon
as tax credits are approved. Oversight by DHCD and other grant agencies will
also provide an additional level of budget oversight.
Housing Criteria:
Create or preserve community housing – both rental and home
ownership, with a focus that matches community needs for households
The project will create an affordable housing type that is needed in both
Northampton and the region.
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Promote and encourage use by diverse populations
The applicant has developed a fair marketing plan and minority occupancy goal
to meet this criteria.
Provide housing that is harmonious in design and scale with the
surrounding community
The project, both in exterior design, and type of facility, is in keeping with the
Village Hill area.
Intermingle affordable and market rate housing
The project will be a mix of units restricted to 60% of area median income or
below, with the rest of the units available at market rates. It is also expected
that some units will be utilized by individuals classified as very low-income. The
facility is also located within Village Hill, which itself is a mix of housing types.
Ensure long-term affordability (see Appendix D), with a focus on:
Housing ownership affordability of at least 30 years
Housing rental affordability of at least 99 years
If the CPA request is funded, the affordability of the restricted units will be
ensured by an 80 year restriction held jointly by DHCD and the City.
Promote the use of existing buildings or construction on previously-
developed or City-owned sites
Give priority to Northampton residents and employees, consistent with
fair housing.
Provide the City credit for units under M.G.L. Chapter 40B
The units will count towards the City’s affordable housing inventory.
Provide services for underserved populations
The facility will provide 83 assisted living units to serve frail elders
Is LEED or Energy Star certified, complies with energy stretch code,
and has a very low HERS rating
The facility will meet the Northampton energy conservation “stretch” building
code, and is anticipated to be LEED rated.
Provide housing in locations that promote walking, biking, and use of
public transportation, and discourage single-occupancy vehicle trips
Village Hill is located close to downtown, in a mixed-use development. The site
is served by sidewalks and bike trails, as well as PVTA service. While use of
these amenities may be somewhat limited by residents, they are an important
consideration for employees and visitors.
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Provide housing for households with incomes below 80% of area
median income, (the extent to which includes the number of such units
and the percentage of such units in relation to the total number of
units in the project)
Just over half of the 83 units in the project will be restricted to individuals
earning 60% AMI or less.
Provide housing for very low income households (the extent to which
includes the number of units and the percentage of such units in
relation to the total number of units in the project that are provided for
households with incomes below 50% of area median income, and
households with incomes below 30% of area median income)
The project will contain 17 units restricted to very-low-income individuals.
Project Budget:
The construction cost of the project is estimated at $13,400,000. The $250,000
is being requested from CPA to help fund the project. This will leverage the
success of the project and providing the city with an Affordable Housing
Restriction. CPA funds are being used as a local match for the applied-for
$5,000,000 in federal low income housing tax credits, and $1,125,000 in state
and federal low income housing tax credits. The tax credit application has not
been successful the first two rounds, and we hope that the direct commitment of
$250,000 in CPA funds will show increased local support for the project and
make the application more competitive.
Project Timeline:
Construction Start: April, 2014
Complete Construction: May 30, 2015
Begin Occupancy: June, 2015
Stabilized Operations: September, 2016
Feasibility:
There are no outstanding permits required for the project. All due diligence is
complete, and the applicant is ready to begin construction as soon as funding is
secure.
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