MassHousing helps finance the sale of affordable housing developments

By Jenifer B. McKim, Globe Staff

MassHousing, the state’s affordable housing bank, said Tuesday that it helped finance the sale of five affordable housing developments to a Boston-based nonprofit, protecting 733 apartments from the threat of steep rent increases.

MassHousing said it helped provide nearly $168 million in financing for the sale of the apartments to the nonprofit, Preservation of Affordable Housing, which is committed to keeping the developments at lower-cost rents for at least 40 years.

The properties, mostly in Boston, were at risk of being converted to market rents or condominiums after their existing mortgages expired over the next seven years, MassHousing said.

The nonprofit, which owns and operates nearly 8,000 homes nationwide, purchased the five communities developed by the private company, State Street Development Co. of Boston. MassHousing also approved the transfer of ownership for a sixth 108-unit community in Brewster developed by State Street to the preservation group.

MassHousing Executive Director Thomas R. Gleason said the financial transaction was the “biggest and most complex” effort the agency has ever undertaken.

“This is a big win for affordable housing and the people who live in these homes,’’ he said.