Not only is this project getting funds from the City of Worcester (believe they are HOME funds), but we are getting grants from the Commonwealth and Federal tax credits. Although the project is costing $7 million, in the end the loan that has to be paid back will be in the $600,000 to $1,000,000 range. The rest of the monies do not have to be paid back as long as the 25 units are rented to low to mod income residents for the affordability period (believe it is twenty years). In other words, if a professor from Holy Cross wants to live there, he (or she) would not qualify.
This project will not be mothballed. If it was a conventional private project, it would but this is not a conventionally financed project. In today's market, the only ones who can build in Main South are highly subsidized builders of affordable housing. The numbers simply do not work for a private investor in this area.
Paulie, as far as what the actually people who live here or own property next to this project, you are so naive. Their opionion means nothing. This is big money (7,000,000 million dollars)!!! Since you are only paying back a note on $1,000,000 (at the most) and 25 units are rented then their are residual income to the developers (South Worcester is 50% owner in the end). In other words the South Worcester Neighborhood Center has a vested interest in this project since we all know that state funds are getting cut. Talk about conflict of interest.
Bottom line if Donald Trump ever came down here and wanted to build luxury condos, he would be turned away with people yelling "gentrification". On the other hand, you come to town with millions of tax-payer monies planning to build housing for low to mod income people, the red carpet is rolled out, variances are granted, water/sewer hook-ups are waived and sidewalks repaired at no cost.
Did I mention the ribbon cutting ceremonies? Twenty percent low to mod-income housing here we come. Right now the commercial-industrial tax base is at 18% in the City of Worcester while low to mod income is at 13.60%. I predict that by the year 2010, the percentage of low to mod income housing will exceed the commercial-industrial tax base.
The number 1 growth industry in the City of Worcester is low to mod income housing development!
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