Stalled housing construction gets a jump-start
Hammers can resume swinging on two long-stalled housing projects in Plymouth and Wareham, now that the developers are assured of receiving federal stimulus money being distributed by the state Department of Housing and Community Development.
Cherry Hill II, comprising a 35-unit senior affordable-housing complex and an adjacent 10,000-square-foot administrative office building under construction in Plymouth, is slated to get $6.3 million toward its $11.2 million cost. All other funding for the project has already been secured.
And The Village, featuring 49 affordable rental units in 10 buildings on Main Street in Wareham, will receive $8.5 million of its total cost of $12.2 million, putting all necessary funding in place.
The state housing office selected a total of 10 projects statewide for $50.3 million in stimulus funding awards, which will be given in the form of deferred loans that don’t have to be repaid as long as the housing remains affordable. The other projects are in Amherst, Charlton, Chelmsford, Lunenburg, Watertown, West Boylston, Westfield, and Worcester.
“This is a huge relief for us,’’ said Dean Harrison, executive director of Plymouth Bay Housing Corp., the organization sponsoring Cherry Hill II as an affiliate of the Plymouth Housing Authority.
Cherry Hill II was half-built last January when the private investor, who had committed to buying $6 million in so-called investor tax credits toward the project, decided to back off due to the deteriorating economy. Once the bills stopped being paid, contractors walked off the job.
The general contractor, Callahan Construction, buttoned up the buildings for the winter before hauling out all its equipment. Currently there are more than $2.6 million in liens against the Court Street property for work done but never paid for, filed at the Plymouth County Registry of Deeds.
Callahan has agreed to return as soon as funding becomes available. Since the distribution of stimulus money is a new process, Harrison said he was unsure of the state’s time frame.
“But as soon as we have the money, we’ll pay off the liens,’’ he said.
Phil Hailer, spokesman for the Department of Housing and Community Development, called Cherry Hill II a “textbook case of what this money is for.’’ He said the state wants to see all 10 projects “on the fast track’’ toward completion.
Even though they’ve stood abandoned for the last 10 months, Cherry Hill II’s half-constructed buildings remain in good shape, according to Harrison. There was some leaking in the apartment complex since the elevator shaft was left open to the elements, and the water had to be pumped periodically. “We’ve got some cleanup to do, but there is no mold and there was no water damage,’’ he said.
The apartments will likely be ready for tenants by the end of 2010. “We’re looking to get everything signed and return to construction as soon as possible,’’ he said.
Plymouth Housing Authority director Joan Pimental said local seniors have expressed a great deal of interest in the apartments. “We don’t feel we’ll have any difficulty with occupancy,’’ she said.
The town had pitched in $2 million in community preservation funds toward Cherry Hill II, and that money had helped get construction started. Acting Town Manager Melissa Arrighi said local officials, as well as residents, will be glad to see the project finished.
“We supported this project, and we were very concerned when it got stalled,’’ Arrighi said. “We also want to do something with the property the town owns next to Cherry Hill, so moving this along will help us.’’
The Village project on Main Street in Wareham also stalled because of the failure of investors to pick up the tax credit options.
“We had been two days away from construction when funding issues became a problem,’’ Eisenberg said. Once construction starts, it will take about 18 months to complete all 10 buildings. The project consists of one-, two-, and three-bedroom units that carry no age restriction.
Christine Legere can be reached at christinelegere@yahoo.com. 
