Peter Sanborn Place
Reading, MA
 

• Section 202 property refinancing
• OSI established viable replacement reserve funding plan

Peter Sanborn Place is a residential development for the elderly and disabled, in Reading, MA. The 74-unit property was developed under HUD’s Section 202 program in 1983, sponsored by United Church Homes of Reading. It is physically attractive, well-managed and financially viable. Over time, it has aged to a point where capital improvements are in order. Its residents have aged as well; many now need some modifications to their units and/or additional services in order to continue living independently.

In order to preserve and sustain this vital assent, Peter Sanborn and MassHousing crafted the first successful state agency Section 202 refinancing in the country. It significantly lowered the property’s debt costs and pumped substantial capital into needed building improvements and resident services. The recapitalization facilitated major kitchen and bath renovations for improved accessibility and functionality for a frail, elderly population. Other initiatives included common area lighting upgrades, a keyless entry system, 24-hour resident supervision and an escrow to pay for other supportive services.

While most of the capital improvements at hand were funded out of MassHousing financing proceeds, OSI had an important role in helping establish a viable replacement reserve funding plan for the development’s ongoing operation, and in determining how much in existing reserves could be dedicated to the immediate rehab program. The Agency has made capital needs assessments an integral part of its award-winning, and rapidly-growing, Section 202 refinancing program.

Since Peter Sanborn Place, OSI has worked on dozens of Section 202 refinancings from New York to California.