BOSTON – June 19, 2014 – Affordability for low-income senior citizens living at the 181-unit Leisure Tower in Lynn will be preserved and property improvements will be made for the residents with the closing of an $18.1 million MassHousing loan.

As a condition of the loan, Silver Street Development Corp., the property owner, will seek to extend for 20 years the Section 8 Housing Assistance Payment (HAP) contract and the affordability at Leisure Tower when the current HAP contract expires in 2018.

Leisure Tower was built at 10 Farrar St. in Lynn in 1972. The property is being refinanced through MassHousing’s Section 8 Proactive Preservation Program, which seeks to extend affordability at developments where Section 8 HAP contracts are due to expire.

“Leisure Tower is an important affordable housing resource for senior citizens in Lynn and this financing will ensure that all the apartments remain so for the long term,’’ said MassHousing Executive Director Thomas R. Gleason.

The 181 apartments, which include 26 studio apartments and 154 one-bedroom units, are contained in a 14-story building. One two-bedroom apartment is occupied by a property manager. As part of the refinancing, a number of improvements will be made to the property, including the installation of high-efficiency boilers and an energy-efficient cogeneration system, as well as apartment and common area floor replacement and painting and elevator upgrades.

“Leisure Tower is a centerpiece of the Silver Street portfolio in terms of our company mission for long term preservation of affordable housing and our continual effort to move the bar higher in the quality of our management, physical maintenance, and commitment to improved energy efficiency for our properties,’’ said Chris Poulin, a founding principal at Silver Street Development. “Leisure Tower was on the cutting edge of Section 236 preservation in 1998 when we first partnered with MassHousing to preserve this housing opportunity for the residents of Lynn and this recent loan closing has strengthened the long term commitment between our two organizations. The Section 8 Proactive Preservation Program was a perfect platform to reach our goals together. The staff at MassHousing could not have been more accommodating in making this a reality and our hats are off to them for their dedication and support.”

About the MassHousing Section 8 Proactive Preservation Program

The Section 8 Proactive Preservation Program targets a group of affordable rental developments that were originally financed by MassHousing and are eligible to convert to market rates when those mortgages mature. Each of these developments receives a subsidy from HUD that is used to help pay the tenants’ rents each month. However, if the mortgage is paid off, there are no more affordability restrictions or any incentives from HUD to keep the properties affordable unless the owner agrees to renew the Section 8 contract. Through this program, MassHousing now provides those incentives.