Stimulus fund could revive stalled project
Lack of money has kept housing units half-built
An ambitious plan to add 35 units of affordable senior housing in Plymouth center has stalled for lack of funds, leaving the $11.2 million project, which also includes a building for administrative offices, less than half-built with no immediate plans to finish it.
Subcontractors walked off the job earlier this year when the general contractor, Callahan Inc., buttoned up the buildings and left the site. The hulking complex, called Cherry Hill II, sits abandoned in Plymouth’s busy downtown, with strips of Tyvek dangling from unfinished exteriors, and interior work yet to begin.
“We had more invested than we had planned to,’’ said Dennis Sheehan, Callahan vice president, recently. “We could have left sooner than we did, but we stayed to get the buildings closed up for the winter.’’
Plymouth Bay Housing, the nonprofit established to build the project, had expected to open Cherry Hill II to tenants sometime this summer. But planners are now hoping they can scrape together enough cash, through federal stimulus money, to get hammers swinging at the Court Street site again by late fall. Move-in, even under a best-case scenario, would be next spring.
Dean Harrison, Plymouth Bay Housing’s director of development and operations, said federal stimulus money for housing, expected to flow soon into state coffers, is aimed at restarting stalled projects like Cherry Hill II. The funds, overseen by the US Department of Housing and Urban Development and the US Treasury, will be distributed in Massachusetts by the Department of Housing and Community Development. That agency is waiting for federal approval of its proposed criteria for awarding the money.
Cherry Hill II won’t qualify for one of the funding options, said Harrison, because the program is limited to construction that was bid using the prevailing wage scale. But the project will qualify for the Tax Credit Exchange Program, under which Plymouth Bay Housing could exchange its allotted tax credits for that amount in dollars. The deadline for application is expected to be in mid-July, and Harrison said Plymouth Bay stands ready.
“The biggest issue will be a project’s readiness to proceed, and we’ll score well on that,’’ Harrison said. “This project is also a high priority for the state because it’s a high-profile project in the town.’’
Plymouth Bay Housing had all its initial financing in place by last October The largest chunk was a $5.9 million commitment in so-called investor tax credits, sold to investors who commit private money to public projects. Other funding sources included an amount from the Mass. Affordable Housing Trust, Department of Housing and Community Development funds, and a $1.7 million first mortgage from the Massachusetts Housing Partnership.
With the exception of the mortgage, most of those funds never have to be repaid as long as the housing remains affordable, Harrison said.
The town of Plymouth kicked in $2 million for the housing effort from its Community Preservation Act funds.
Meanwhile, Rockland Trust Bank had signed on to provide the construction loan. Harrison said the paperwork on the financing had already been completed and signed by Plymouth Bay Housing.
“Then I got the call you never want to get,’’ Harrison said. “The investor who was supposed to buy the tax credits had decided to wait’’ because of the poor economy. That change of circumstance prompted Rockland to pull back its construction loan commitment, since there was no longer a guarantee of payback.
“Finding investors for these low-income tax credits has become more difficult, particularly in the last year, due to the economy,’’ said Phil Hailer, spokesman for the Department of Housing and Community Development.
If stimulus money comes through, the first step toward getting construction at Cherry Hill II back on track will be to make good on the debt connected to the project.
Several liens have been filed on the property at the Plymouth County Registry of Deeds, mostly claims from subcontractors for unpaid bills. Sheehan also filed a statement on behalf of Callahan at the registry, claiming the company is still owed $2.6 million.
Bruce Arons, Plymouth’s Community Development director, said what happened at Cherry Hill II is understandable. “It’s the economic circumstances,’’ Arons said. “There are a lot of projects in limbo for the same reason.’’
“Everybody is looking hard, and everybody is confident we’ll get this completed,’’ he said. “This is a great project and one the town can be proud of.’’
Christine Legere can be reached at christinelegere@yahoo.com. 
