Boston Affordable Housing Development Competition (2019)

Villa de Isla

FEDERAL HOME LOAN BANK OF BOSTON AFFORDABLE HOUSING DEVELOPMENT COMPETITION 2019

Acknowledgments

Student Team MIT

We would like to thank the following people for their time, insights, and contributions to our project: Salma Abdelgawad, MSRED

PROJECT ADVISORS & MENTORS Kairos Shen, Advisor Dennis Frenchman, Advisor Edward Marchant, Professor Peter Roth, Professor

Drew Morrison, MCP/MBA

Karl Seidman, Professor Mill District Property Owners Gary Sidell, Bell Tower Management Marianne Paley Nadel, Everett Mills Real Estate Brad Buscher, Groundwork Lawrence

Marisa Prasse, MCP

Hannah Mezzina, Essex Art Center Mary Lyman, Greater Lawrence Family Health Center

RESIDENTS Tonya Britu Ana Taveras Jacoba

HARVARD

Lauren Funaro, RN Lawrence General Hospital

Sam Adkisson, MAUD

Ana Montano Edwin Montano Armand Hyatt Monica Neira

Kim Bernardin, MUP

Becky Guzman Thelma Gomez

OUR SPONSOR

McKayla Dunfey, MUP

Lawrence CommunityWorks (LCW) is a community development corporation that weaves together community planning, organizing, and asset-building eorts with high-quality aordable housing and commercial development to create vibrant neighborhoods and

Amy Friedlander, MUP

empowered residents. By facilitating conversations and action on community priorities, LCW engages partners and a network of youth and adult residents in opportunities to move themselves and the city of Lawrence forward. We would especially like to thank Spencer Buchholz and John Harden for providing their time, knowledge, and talents to

Shovan Shah, MAUD

help our team with our proposal.

Charlie Smith, MLAUD

TABLE OF CONTENTS

4 The Story

10 The Context

20 The Project

35 The Financials

40

• • • • • •

Executive Summary A Changing City, a Leading Partner The vision: It takes a Village Building on a Decade of Engagement What do Island Residents Want Evaluation Criteria

• • • • •

Making The Immigrant City A Diverse Working Class City and Tight Market Site context: The North Canal Island District New Smart Growth Zoning District Amenities & Services

• • • • • •

Site Strategy: Activated Nodes and Edges Unit Program Island Amenities & Project Services A Day in The life Smart Growth Sustainability

• • • • •

Financial Strategy Development Budget Sources & Uses Operating Pro-Forma Off-Site Funding

• •

Development Phasing Neighborhood Timeline

•

Project Conclusion: It Takes A Village

Implementation

42 The Conclusion

Puerto Rican Dancers, Lawrence Semana Hispana

The Story La Historia

Villa de Isla

EXECUTIVE SUMMARY

PROJECT MISSION

It takes a village to raise a child. Villa de Isla, inspired by this

Envision and implement a family-first development that embraces the site’s island setting and completes a dynamic, mixed-use neighborhood.

principle, is an affordable housing development in Lawrence, MA sponsored by Lawrence Community Works (LCW) that converts an underutilized industrial parcel into a 96-unit family-oriented and mixed-income community, a village where children can live and thrive.

In total, there will be 79 affordable apartments, including 24 Section 8 project-based units. Villa de Isla’s design was directly informed by community outreach, resulting in a family-focused approach with 62% of the units as two- or three-bedrooms, as well as the inclusion of additional storage space and homework nooks. As part of a larger vision for how Lawrence’s East Island neighborhood can serve the needs of families, Villa de Isla facilitates the development of an array of community spaces including a civic square, a healthy bodega, a splash pad, and a regional trail, promoting both commercial

PROJECT HIGHLIGHTS

revitalization and more effective use of public spaces. The proposal outlines a multi-project implementation strategy for these spaces.

•

96 unit mixed-income development

•

A mix of bedroom types (36 1bd, 36 2bd, 24 3bd), catering to families

•

7% of units serving residents making less than 50% of median income.

•

Carefully designed amenity rooms and public open spaces

•

Services and skills workshops to be provided by LCW and partners

•

Creative public-private financing and implementation strategy

The building design also looks to the future, while directly engaging with Lawrence’s history. Near Passive House design is achieved through clever site design, solar energy and the use of “mill power” water rights from North Canal. The exterior design of the building uses brick to evoke a mill aesthetic, while introducing a more modern design to the neighborhood.

The Villa de Isla project is the missing puzzle piece of the East Island District, establishing the physical and social connections needed for a cohesive community, while creating a valuable asset that will benefit Lawrence for generations to come.

-05

The Story

A CHANGING CITY: A LEADING PARTNER It’s an exciting time for Lawrence. The city has undergone

LCW has been growing a network of residents engaged in

a large demographic transformation over the past four

building family and community assets in the Union Crossing

decades, as the non-white population of Lawrence has grown

neighborhood since the early 2000s. The organization, along

spectacularly from 8,388 residents in 1980 to over 66,000

with community partners, produced a Master Plan in 2008,

today.

which included extensive community engagement in the form of six community events. This plan launched the redevelopment

The redevelopment of 20-30 Island St. is a critical building

of the Union Crossing-Building 9, which now boasts 60

block for Lawrence’s vital future and the revitalization of the

affordable and energy efficient units in the former textile mill

broader North Canal Historic District. Given the District’s

located to the west of 20-30 Island St. Community planning,

significant mixed-use development opportunities, the City of

led by an all-volunteer committee, continued between 2008

Lawrence and community partners have led several planning

and 2011 in the form of over twenty charrettes and meetings,

and engagement efforts over the past decade. Community

engaging hundreds of community members.

members have actively engaged in formulating a twenty-first century vision for this neighborhood that reflects the diverse

The City recently adopted a visionary plan that contains

needs, interests, and identities of Lawrencians. Community

inspirational goals for reinvigorating downtown neighborhoods.

organizations, including Lawrence Community Works and

It approved new zoning that allows the City to take advantage

Groundwork Lawrence, have been instrumental in advocating

of Massachusetts’ 40R program to build new infrastructure

for the development of an inclusive and equitable neighborhood

and open spaces. And groups like Lawrence Community Works

that provides workforce housing for people of all income levels

have been working tirelessly to build community and create

and enables easy access to public amenities, such as Ferrous

new opportunities for Lawrence residents.

Park and the Merrimack River.

“For me, Lawrence is full of undercover dreamers and believers fighting each day to make their lives better...”

“In 2025, Lawrence will be a city where work meets opportunities!”

-Lawrence Resident as quoted in 2017 TBD Plan

-Future Lawrence Resident

Villa de Isla

THE VISION: IT TAKES A VILLAGE

BUILDING ON A DECADE OF ENGAGEMENT

Our family-focused vision for Villa de Isla creates the physical and social connections that are fundamental to strong communities and healthy kids. Through the implementation of this project, and related public and private projects on Lawrence’s “East Island,” we can create an urban village that promotes young peoples’ healthy development through outdoor recreation, quality food, and interior learning spaces.

This project vision was directly informed by our team’s outreach efforts. Feedback from a focus group, stakeholder interviews, and previous public meetings have significantly shaped our proposal. LCW has been committed to empowering community members throughout this planning process, and one of our team’s primary objectives was to build upon feedback from their thoughtful engagement that has taken place since the early 2000s. The Lawrence residents with whom we spoke identified their children’s needs as central to what they desired to see in their community.

PROJECT GOALS •

Create that

high-quality, can

meet

the

family-oriented changing

housing

needs

of

the

community while embracing Lawrence’s history.

•

•

Provide

the

much-needed

the

existing

uses

on

the

residential Island

connection and

with

between

commercial

Ferrous

Park.

Generate new indoor and outdoor spaces where LCW

can

continue

its

essential

community-

building work and provide amenities and services to residents.

-07

PUBLIC ENGAGEMENT

RESIDENTS SHARED THEIR IDEAS

To build upon previous engagement, we hosted a focus group with current North Canal Historic District residents on March 14 to solicit ideas on design and programming alternatives.The meeting provided our team with an opportunity to learn about the types of spaces, both public and private, that would make our site and the neighborhood as a whole a more attractive place to live, work, and play.

PREGUNTAS ESPACIO PÚBLICO AL AIRE LIBRE • ¿Cómo utilizas el espacio público en el barrio actualmente?

Compromiso de la isla este CARACǫ TERÍSTICAS DEL SITIO

• Acceso al sitio y a través del sitio al parque • Conexiones a los espacios verdes, como Ferrous Park • Estacionamiento • Seguridad para residentes

Most residents who participated in the focus group had been

• ¿Qué tipo de espacios al aire libre te gustaría ver?

living in the neighborhood’s affordable housing for over five

ESPACIO COMUNITARIO INTERIOR • ¿Que tipos de espacios comunitarios utilizas en tu ediƮ Ʈcio?

• ¿Hay servicios que desearías tener en o cerca de tu ediƮ Ʈcio?

CARACǫ TERÍSTICAS DEL EDIFICIO

• Espacios de congregar interiores abiertos • Espacio de juego, cocinas comunitarias, guardería

• Espacios de congregar al aire libre • Lugares para barbacoa, jardin de techo, vistas al rio y al parque, canchas deportivas

• Lavandería • Ascensores / Áreas designadas para fumar

APARTAMENTOS

years and provided a wealth of knowledge regarding the

• ¿Qué características te gustan / no te gustan en tus apartamentos?

• ¿Cuáles son las características importantes de los apartamentos que debemos considerar?

SI TUVIERAS QUE NOMBRAR ESTE EDIFICIO, ǻǻCÓMO LO LLAMARÍAS?

PREFERǫ ENCIAS DE DISEÑO DE EDIFICIOS

• Apartamentos de 1-3 dormitorios • Almacenamiento • Cocina abierta • Diseño para niños (rincones de estudio, materiales de calidad duraderos) • Accesibilidad para los discapacitados en el

ǻHAY ALGO MÁS QUE QUIERAS COMPARTIRNOS?

challenges and opportunities associated with the public and

primer piso • Balcones o porches

• ¡Escribe tus ideas en el cartel!

resident-only spaces in the neighborhood.

PREFERǫ ENCIAS DE DISEÑO DE EDIFICIOS

• Respuestas diferentes • Accentos de colores contemporáneos • Ladrillo y paneles modernos • Revestimiento mixto

FOCUS GROUP PHOTOS

Villa de Isla

The Story

WHAT DO ISLAND RESIDENTS WANT? PUBLIC & SEMI-PRIVATE OUTDOOR SPACES •

Sports court for kids

•

Adult fitness with adjacent play space

•

Connected & safe walkways to Ferrous park SPORTS COURT

WALKWAYS

GYM

LOUNGE

SHARED KITCHEN

PLAYROOMS

QUALITY DESIGN

EXTRA STORAGE

MORE BEDROOMS

INDOOR COMMUNITY SPACES •

Lounge space for movie nights

•

Community kitchens for parties

•

Indoor spaces for kids to play

BUILDING FEATURES •

Quality kid-friendly design

•

Extra storage space

•

More bedrooms for families

We aimed to focus the conversation around three key aspects

the hallways, which can be disruptive and noisy for other

of development, as listed above. A common thread throughout

residents. While one mother noted how she loves that families

the focus group was the importance of kid-friendly design and

on her floor have become an accepting and close-knit group,

amenities.

she acknowledged that additional indoor space might alleviate some of the stress associated with kids running and biking

SAFE OUTDOOR SPACES FOR ALL AGES

through the hallways. Participants agreed that an indoor

Ferrous Park was widely mentioned as an underutilized

youth lounge space could be a great amenity.

amenity. Residents wish the park was safer and better

LARGE UNITS FOR FAMILIES

connected to the neighborhood. One resident remarked that she only visits Ferrous Park with her husband because she

Lastly,

residents

repeatedly

mentioned

storage

space.

doesn’t feel safe there alone. There was strong interest in a

Larger closets would be a huge plus for larger families. One

sports court for kids and adult fitness equipment.

resident mentioned that she would even be willing to pay for an additional basement storage locker if space existed. The

INDOOR PLAYSPACE

need for more bedrooms, along with kid-friendly design and

A major challenge for parents living in Union Crossing is

durability, further emphasized many of the residents’ desires

finding indoor space for kids to play without disturbing

for homes that support families.

other residents. In the winter, kids often end up playing in -09

The Story

Lawrence Summer Mural Program, Robert Frost Mural

EVALUATION CRITERIA

COMMUNITY RESPONSIVENESS

PHYSICAL DESIGN

>

ENVIRONMENTAL SUSTAINABILITY

>

>

Villa de Isla addresses the needs we

Villa de Isla creates an engaged civic and

The project takes a comprehensive

heard from constituents by providing

commercial center on the southwest

environmental sustainability approach

more than quality affordable housing.

of the site with a new Civic Square

through

We

public

adjacent to a double-story community

maximizes

realms to make them safer and more

room and connection to the interior

as building design at near Passive

enjoyable to a wider audience. This

courtyard. Building materiality was

House levels with superior cladding

includes the Ferrous Park and the

informed

and

Merrimack river walk. We are also

residents looking for a more modern

lower emissions. Villa de Isla

adding a semi public courtyard open

take on the traditional mill building

takes

space

sensibility,

the

“mill power” water right from the

between all the commercial center

current community, a diverse, young,

adjacent canal for sustainable, low

and the Ferrous Park. Our plan also

Hispanic

building

cost irrigation, which will be paired

corresponds directly to recent planning

plans include an array of 3-bedroom

with a ground source heat pump.

efforts by the city of Lawrence, as well

units, several of which are split level

The site contributes to Lawrence’s

as the decade of community planning

with separate entrances, as well as

“smart

and outreach led by LCW.

significant additional storage space as

a

requested by community members.

within

are

activating

acting

as

existing

the

linking

node

by

conversations

oriented

with

towards

population.The

careful solar

insulation

site

planning

intake,

to

well

substantially also

advantage of the site’s unique

growth”

goals

pedestrian-friendly a

10-minute

by

building

development walk

commuter rail train station.

Villa de Isla

as

that

to

the

EVALUATION CRITERIA

PROJECT FINANCING

PROJECT FEASIBILITY

>

INNOVATION

>

Villa de Isla utilizes several innovative

We believe that the vision for Villa

The plan addresses the major constraint

funding

to

de Isla can become reality by the

of high parking requirements with a

catalyze

end of 2024, due in large part to the

creative plinth design, using the site’s

holistic community development. The

project’s

natural slope to disguise the parking

apartments will be financed through

right development strategy and strong

structure

a hybrid 9%/4% LIHTC execution,

community

of

green space above in addition to sports

with project-based Section 8 vouchers

Lawrence recently approved a “smart

courts. Art is a crucial piece of the

and local Lawrence HOME funds. We

growth” zoning overlay specifically

proposal. Two sections of the exterior

also propose several financing tools

for the Mill District, with the Villa de

of Villa de Isla will be devoted to the

for creating and sustaining dynamic

Isla site as the centerpiece. LCW has

Lawrence Mural Project for large-

public spaces ideal for raising families.

also secured site control.

scale art activation. In addition, LCW

maximize

mechanisms its

impact

in and

order

compelling support.

vision, The

as-ofcity

and

provide

significant

This includes 40R funding, open space

will collaborate with Essex Art Center,

grants and New Market Tax Credits for

also located on the island, for art

the adjacent commercial building.

workshops and programming in the building. The Villa de Isla proposal also incorporates

an

innovative

public-

private partnership structure in which LCW will build recreation amenities, including a splash pad and sport court, and then transfer ownership to the city in order to expand Ferrous Park and create an amenity for both island residents and Lawrence as a whole.

-011

Lower Pacific Mills, Lawrence MA Painting By Ralph Fasanella, 1976

The Context El Contexto

Villa de Isla

LAWRENCE HISTORY: MAKING THE IMMIGRANT CITY

Through Lawrence’s history, it has been inextricably linked

limited the work week for women from 56 to 54 hours. The

both to the textile mill industry and to immigration. Lawrence,

strike’s name derived from a labor poem published the year

particularly the area of Villa de Isla, first emerged in the 1830s

before by James Oppenheim:

when Daniel Saunders purchased land on both the north and

As we come marching, marching, we battle too for men, For they are women’s children, and we mother them again.

Our lives shall not be sweated from birth until life closes;

south banks of the Merrimack River in order to gain access to water rights for mill power. This land was acquired in 1845 by

Hearts starve as well as bodies; give us bread, but give us roses!

the Essex Company, which continues to own the North Canal just north of the project site to this very day. By 1848, the

While the residents of Lawrence are predominantly Dominican

Great Stone Dam, a major landmark on the Merrimack River

and Puerto Rican, the strength and spirit of working class

and an essential enabler of the mill economy, was completed.

immigrants remains a source of identity. After peaking at

The immigrant populations moving to Lawrence to work in

94,000 people in 1920, Lawrence began to enter a period

the mills fueled dramatic growth in the city. With 104 people

of decline as the mill industry collapsed in the 1940s and

in 1845, by 1850 Lawrence had surpassed 8,000 residents, and

1950s. The population bottomed out at 63,000 in 1980.

by 1860 had crossed 17,000 residents. While initial immigrants

Since then, Lawrence has seen increased population growth

were largely Irish, at the turn of the century, the 42% of

driven by new Latino immigrant populations, replacing the

residents who were foreign-born were increasingly southern

European immigrant population of the past. Meanwhile, the

and eastern Europeans and Middle Easterners. By 1900,

mills, instead of producing textiles, have been converted to

Lawrence had over 60,000 inhabitants.

residences, offices, and artists’ studios over the past decade.

The working conditions of the booming mill industry, however, created substantial challenges for the mill laborers of the day. In the Progressive era of the early 1900s, Lawrence became a centerpiece of the rising public consciousness about the exploitation of labor in industrial towns. A 1911 survey documented “overcrowding, working conditions and contamination as causes for high rates of disease and death among Lawrence residents living in poverty.”

These tensions boiled over in 1912 during the infamous Bread and Roses Strike. Coordinated by the International Workers of the World (IWW), this strike brought national attention to the plight of workers in Lawrence, particularly after striking workers’ children fanned out by train to visit communities across the Northeast to beg for support and food. Strikers were 1912 Bread & Roses Strike, Lawrence History Center

responded to decrease in women’s pay after new state law

-013

The Context

DEMOGRAPHICS AND MARKET A DIVERSE, WORKING CLASS CITY

A STRENGTHENING BUT INCOMPLETE MARKET

Lawrence has become an increasingly attractive location for

Despite

Lawrence’s

growing

population,

new

housing

families to live, with a population that has grown from 63,000

construction has not kept pace, residential vacancy is very

in 1980 to 79,337 people today. For its entire 170+ year history,

low at around 3%, and Lawrence households experience a high

Lawrence has been home to immigrants, and that legacy

housing cost burden. The fair market rate rents in Lawrence,

continues as almost 20% of residents are now non-citizens.

according to 2019 data are $920 for a studio, $1,057 for a

Most Gateway Cities have substantial immigrant populations,

one bedroom, $1,357 for a two bedroom, $1,700 for a three

but Lawrence’s percentage at 50% is considerably higher than

bedroom, and $1,834 for a four bedroom.

New Bedford’s at 21%, Salem’s at 17%, and even higher than the 45% and 32% levels for Chelsea and Lynn, respectively. Lawrence

LAWRENCE:

BY THE NUMBERS

has also seen shifts in the racial composition of its residents, as the non-white population has increased from 8,388 residents in 1980 to over 66,000 today. This shift has primarily occurred as Lawrence has welcomed new Hispanic residents, who make up 77.1% of the population, with about 50,949 Spanish speakers (or 64% of residents) in the city.

Despite its diverse cultural assets, median annual household income in Lawrence is $36,754, making it one of the poorest cities in the region. This creates significant challenges for Lawrence’s under-18 population, which makes up over 27% of the population. Many of the issues broadly impacting Lawrence

50%

77%

Foreign-Born Population

Hispanic Population

30%

34%

Severely Rent Burdened Households

Children in Poverty

residents impact children acutely: 34% of children in Lawrence live below the poverty line. The median income for Lawrence families with children is $32,747, with 30% of households who

While there has been some redevelopment of historic mill

rent spending over 50% of their income on rent alone.

buildings in the area, these buildings have not catalyzed a broader live-work-play economy in the downtown and

Children living in poverty and substandard housing may be

are not well suited for the needs of families and children.

exposed to environmental contaminants (e.g. lead poisoning),

As part of 2015’s Comprehensive Housing Study, Lawrence

experience psychological stress from housing instability, or

identified a need for a critical mass of mill building residents

have limited access to affordable and healthy food. These place-

to provide a catalyst for economic diversification in the city.

based challenges can have long-term impacts on childhood

New development in Lawrence should focus on ways to

development and health. Villa de Isla responds directly to this

support retail and other economic drivers. Villa de Isla seeks

need by providing safe, high quality homes and services, building

to catalyze commercial activity at the proposed Dye Works

a stronger future for Lawrence’s next generation.

Building redevelopment.

Villa de Isla

SITE CONTEXT SETTING

ACCESS

Located at 20-30 Island St. in Lawrence, MA, this 3.8-acre industrial site is bounded by the North Canal and the Merrimack River. The site is currently occupied by Ultimate Windows, one of the last free-standing manufacturers on the island.

While it is within the North Canal Historic District, LCW and local historic preservation officers agree that the remaining buildings are not suitable for rehabilitation and do not have considerable historic merit. However, the site itself is deeply rooted in a history of manufacturing, dating back to the 1840s when the North Canal was built. Through much of the 20th

West-facing view of Island St. from site

Century, Ferrous Technologies ran a metal casting foundry in this location. The site has an appealing topography, as it sits

Villa de Isla is accessible principally from Island Street, a

elevated above both the Canal to the north and the Merrimack

short, two-lane road with sidewalks along the north side

River to the south, with excellent views of the river and historic

of the island. Island Street is connected to Canal Street by

buildings. This position gives Villa de Isla the potential to be a

a short 100-foot bridge over the canal and to Union Street,

prominent building in the city, visible from Lawrence General

a major north-south thoroughfare in Lawrence. Though the

Hospital to the north, and from redeveloped mills across the

island is well connected and positioned within Lawrence,

river to the south.

Ferrous Park still feels distinctly disconnected because of the adjacent industrial buildings and the lack of public parking.

The site benefits from its location on the East Island where

This creates a significant obstacle to activating that space as

LCW and the city have made a significant investment in

a safe, accessible destination for families that our project will

recent years. Ferrous Park, a passive recreational site with a

seek to address.

wraparound greenway is adjacent to the east. This park was built in 2016 in conjunction with the development of Union Crossing, a mixed-use development anchored by 60 affordable units on the west half of the island. Directly to the west of our site is the 35,000-square foot single-story Dye Works Building, also owned by LCW. A large surface parking lot, with approximately 300 spaces, occupies the remainder of the land adjacent to Villa de Isla. These land uses suggest that a continuation of moderately dense and affordable housing as proposed in Villa de Isla aligns with the vision for the future growth of the mill district, and fills a significant gap in the island as it exists today.

-015

View of site from Ferrous Park

The Context

VILLA DE ISLA

Villa de Isla

PROJECT SITE

-017

The Context

ZONING NEW SMART GROWTH ZONING

OPTIMAL DENSITY

In February 2019, the City of Lawrence adopted the Downtown

While the new DSGO zoning technically allows for 590 units

Smart Growth Overlay District (DSGO) and associated rezoning.

on the site, the optimal number of units feasible on the

The DSGO absorbs and expands the existing zoning in order

parcel is much lower. Due to the site configuration, parking

to comply with state 40R requirements, allowing the City to

requirements, the desire to minimize large surface parking

benefit from 40R’s incentive programs, including a lump-

lots, availability of funding, and the cost of underground

sum payment after the rezoning and a per-unit cash payment

parking, the optimal density for the site is closer to the 96 of

for additional residential units approved in the district. The

units provided by Villa de Isla. Even under these new zoning

new DSGO overlay slightly decreases the number of required

requirements, we still believe that the parking requirements

parking spaces per unit, as well as increases the affordable

of, on average, 1.5 spaces per unit are still too high for a

requirement from 10% to 20% in order to comply with the

pedestrian, child-oriented development.

state 40R regulation.

At the same time our team and LCW felt it important to show

MAXIMUM ZONING ENVELOPE

support for the new DSGO zoning, leading to our decision to

The proposed DSGO dimensional requirements permit a

provide 1 parking space per unit in the garage, with the rest of

maximum of 1 unit per 300 square feet of site area with a

the 0.5 spaces per unit provided via on-street parking and a

minimum of 20 units per acre. With an estimated site area

new small parking lot adjacent to Ferrous Park. Both the street

of 177,000 square feet, the number of permitted units on the

parking and small surface lot will be publicly accessible during

site ranges from a minimum of 80 units to a maximum of

the daytime and permitted for residents in the evening.

approximately 590 units.

DOWNTOWN SMART GROWTH OVERLAY DISTRICT REGULATIONS

REZONED DISTRICT

Dimension Standard Height 6 Stories or 75 ft. & Aff. Housing Bonus Setbacks Front, Side, Rear, Pond/River Regulations Min. Lot Size None Residential Density Multi-Family: 1 DU /300 sf Max. Lot Coverage 80%, including Buildings, & Sur. Parking Min. Open Space 20% of Total Lot Area Parking 1/Unit for Studio or 1BR; 1.25/Unit for 2BR; 1.75 for 3BR+

Villa de Isla

AMENITIES NEARBY AMENITIES Located in the heart of Lawrence, Villa de Isla residents

Despite these amenities, grocery stores and recreational open

have easy access to a host of businesses, institutions, and

space for children are in short supply. The closest nearby

services to round out the needs of the village. Though on an

grocery store is Market Basket (1.4 miles), while the closest

island, the project is located three blocks from Essex Street,

open space with recreational play areas for children are

Lawrence’s

O’Connell Common (0.7 miles) and Campagnone Common (0.6

main

commercial

corridor,

and

a

9-minute

walk from the Lawrence MBTA commuter rail station.

In addition, Villa de Isla’s immediate northern neighbor is

miles). Villa de Isla aims to fill these gaps.

TRANSIT ACCESS

Lawrence General Hospital, one of the city’s largest employers and a significant amenity for residents. Hospitals offer a wealth of entry-level positions, a great opportunity for Villa de Isla residents to enter the workforce within walking distance of their home. This proximity is also valuable to families, as having a hospital nearby has been shown to improve health outcomes for children, such as measurable reductions in asthma rates. Residents could also participate in Lawrence General healthy lifestyle programs, in partnership with LCW.

As a housing development tailored to families, access to childcare is a vital amenity. Villa de Isla is situated within a short distance of six childcare providers, including in the Union Crossing Building on the East Island, as shown in the figure in the next page. In addition, the nearby Lawrence History Center and Essex Art Center provide substantial programming, including classes and performances, that Villa de Isla children and adults will be able to enjoy. Several libraries and schools are also convenient to the site, as shown in the next page.

Villa de Isla is near a number of key state and federal agency field offices, providing easy access to important public services. The community is less than a 10-minute walk from a U.S. Citizenship and Immigration Services federal field office, which assists with permanent residency and naturalization processes, in addition to non-profits with services tailored to immigrant families.

57 minutes to Boston via commuter rail

-019

A WELL-SERVICED AREA:HEALTH, FAMILY, AND EDUCATION AMENITIES

½

BUT, LACKING PROXIMATE PARKS AND GROCERY STORES

½

Villa de Isla

The Context

WATER RESOURCES A SITE INTIMATELY CONNECTED TO WATER The site’s relationship to water, both the Merrimack River and the North Canal, is a central consideration of the development plan. Island Street separates the site from the North Canal, and a stretch of privately-owned open space (a berm leading down to the water’s edge) separates the site from the Merrimack River. Both the canal and the berm are owned by Essex Company, the area’s original industrial developer.

Despite the proximity to water, the site is elevated such that the risk of flooding is minimal, with only a 0.2% annual chance of flooding (the site is situated outside FEMA’s 100 Year Flood Hazard Zone, but in the 500 Year Flood Hazard Zone). On the southern edge of Villa de Isla is a recently

Site Conditions: Floodplain & Grade Change

installed bioswale which has the capacity to handle significant stormwater for the entire island. There are also no wetlands on or near the site. As a result of the site’s unique industrial past, Villa de Isla has “mill power” rights, meaning that the project can draw an unlimited amount of water from the North Canal for free. As part of the sustainability and open space mission, Villa de Isla will take advantage of this mill power in the building and irrigation systems.

Another significant natural element of the island is Ferrous Park, which is characterized by a large mound of sand pilings from the site’s former industrial uses, now covered in plantings with a footpath leading to the top. Toward the easternmost part of Ferrous Park is a relatively thick stand of 25-30’ tall trees and a spot popular with local fishermen.

The design of Villa de Isla aims to connect Ferrous Park to the rest of the community, enhancing the island’s unique natural resources.

View from the Merrimack River

-021

Summer Mural Arts Program

by Essex Arts Center

The Project El Proyecto: Villa de Isla

Villa Vil V Vi il illa lla de de Isla Islla Isl

Project Overview: A Village for Every Day of the Year SITE STRATEGY Villa de Isla is designed to foster a diverse, inclusive community, with a

particular

focus

on

catering

to

the specific needs of families and children. The project accommodates a wide range of affordability, unique amenities that prioritize families and children,

a

comprehensive

design

that connects the existing uses on the island, and new open spaces that can be enjoyed by the entire Lawrence community.

disconnected amenities

identifying new nodes

The site was designed in response to the existing disconnectedness of the island. Residents expressed safety concerns related to Ferrous Park.

The

through

design

creates

flow

activated

nodes

and

edges, provides thoughtful open spaces and “eyes on the park,” and enhanced community amenities.

activating edges -023

Project Overview: A Village for Every Day of the Year

Villa de Isla View from Civic Plaza

Villa de Isla

-025

Project Overview: A Village for Every Day of the Year

Villa de Isla Site Plan

splash pad

or view corrid

courtyard

civic plaza

community space connection to trail, plaza, courtyard Villa de Isla

Ferrous Park Fer sport court Merrimack River

-027

The Project

Unit Program The gradient of the site allows for a spatial exploration of the one, two and three bedroom apartment typologies.

With a maximum depth of 20’, it allows for long daylight hours across the apartment and decreases energy use. The apartment blocks are double-loaded and offset between each other, creating spaces for planters. The offsets in the façade create an architectural aesthetic that provides for a more inviting and visual connection with the neighborhood.

1-BEDROOM - 550 SF RENT RANGE: $890 - $1250 Gloria and Humberto recently downsized to a 1-bedroom apartment after their two children graduated from MIT and Harvard. They enjoy having a comfortable space with a large common area for when their children come up from Boston for family dinners.

the courtyard open space for all

Merrimack River

Villa de Isla

2-BEDROOM - 700 SF RENT RANGE: $1,068 - $1,450

3-BEDROOM (TOWNHOUSE STYLE) - 1250 SF RENT RANGE: $1,235 - $1,800

The Rosario family enjoy playing dominoes

The Rodriguez family is a multi-generational household. The large dining

together as a family in their 2-bedroom

room table and flexible living room space allow the family to share meals

apartment

together, while the ground-floor split-level unit allows them to easily

after

the

kids

finish

their

assignments in the common homework room.

access the playground outside.

Canal

-029

The Project

10

1 2 4 3 1 2 3 4

1 bedroom apartment 2 bedroom apartment Homework Room Elevator Lobby

1 2

3

THIRD FLOOR PLAN

0

10

Villa de Isla

20

40’

Project Amenities

“For us, it’s not just about building housing.

We want to create a neighborhood.”

-Jessica Andors, LCW

SHARED GROUND FLOOR AMENITIES The Lawrence Mill District contains a variety of amenities and

Villa de Isla is home to a number of shared amenities on the

service providers, but it is lacks active recreation areas (both

ground floor, including five carshare parking spaces, a bike

indoor and outdoor), youth services, study spaces, access to

storage room, a laundry room with commercial machines,

healthy food, and a cohesive sense of community. The Villa de

and storage lockers that residents and neighbors can rent.

Isla aims to provide these crucial elements of a village to create

This design responds directly to feedback from residents

both physical design connections as well as social, human

with large families who expressed a great need for additional

connections across the island mill district.

storage to free up space in their apartments. The consolidated laundry room also reduces the number of required heat vents, decreasing the permeability of the building envelope and helping to achieve near Passive House status.

PLAYGROUND & COURTYARD

COMMUNITY ROOM & OUTDOOR GRILLS

Villa de Isla centers on a large residential courtyard built into

During our focus group with Union Crossing residents, we

the top of the parking plinth. This landscaped area will contain

learned that their building lacks large gathering spaces. Villa

informal community gathering spaces and seating, as well as

de Isla will be home to a large, flexible community room with

grills and a large playground. This allows space for children

a shared kitchen where residents can gather as a community

to play within the safety of their community and under the

and have meetings or celebrations, such as quinceñeras. This

supervision of parents indoors. The site’s natural elevation

community room will have fold out doors that open up into

change also allows for the inclusion of two slides built into the

the Civic Square where there will be an outdoor grill area and

slope. The entire courtyard is designed to create a seamless

seating for residents, as well as easy access to the underground

transition between interior private space and the Ferrous Park

parking area. The room could be used for LCW’s healthy living

public recreation spaces.

classes, including cooking demonstrations & Compass job training.

INDOOR PLAY AREA & GYM

HOMEWORK ROOMS

The Lawrence General Hospital Community Health Needs

In addition to highlighting the need for indoor play spaces,

Assessment highlighted health inequities, with particularly

residents also emphasized the need for quiet study spaces and

high rates of health-related chronic diseases in Lawrence

reading areas so that children can focus on their studies and

and a need for broader community access to physical fitness

complete school work without distractions. As a result, Villa

resources and opportunities. During outreach, residents noted

de Isla includes homework rooms with large tables, books, and

the challenges associated with workout rooms that have no

whiteboards on the two upper floors of the building so that

space for children to play while adults exercise, as well as a

students can have the spaces they need to focus and achieve

general lack of indoor play areas. As a result, Villa de Isla is

their academic potential.

designed to include an indoor children’s play area in a shared space with the building’s gym, promoting an active lifestyle for all ages.

-031

The Project

Island Amenities & DYE WORKS HEALTHY BODEGA & FOOD HALL While not directly included in the Villa de Isla project, repurposing the adjacent vacant Dye Works Building is critical to the creation of a complete island community. As a part of the city and Lawrence General Hospital’s Healthy on the Block/ Bodegas Saludables initiative to combat obesity, LCW plans to partner with local bodega owners to open a healthy bodega and hot food hall. While many Lawrence residents depend on bodegas for daily grocery needs, there are currently very few food options in the immediate vicinity. The healthy bodega will leverage the initiative’s resources to provide healthier options at a reasonable price, including a wide variety of ingredients and prepared food from Central and South America.

SPLASH PAD Throughout the community outreach process, we heard from residents and partner organizations about the desire for a water play area on the site. Residents explained that the existing splash pad in Northern Lawrence is in use sunrise to sunset during the warmer months of the year. The splash pad water play area at Villa de Isla will be designed to highlight the mill district history with playful educational placards (in English and Spanish) created in partnership with the Lawrence History Center. The splash pad will be sited at the east end of the site to take advantage of an existing water box, and will be transferred to public ownership and formally incorporated into Ferrous Park upon completion.

TRAIL The Spicket River Trail has been long-envisioned by the Lawrence community as a three-mile long “emerald bracelet” of green spaces and multi-use paths that connect parks and neighborhoods. Our proposed trail runs through Ferrous Park, along the edge of the project site. Federal funding could be used towards constructing a greenway that would provide the island with better riverfront access and increased walkability.

The design increases public access to Ferrous Park by boosting visibility, adding public parking and redesigning Island Street as a shared road with ample pedestrian accommodations and slow speeds. This will allow the public to enjoy the park, and will make visitors feel safer while enjoying the beautiful views.

Villa de Isla

Project Services

CIVIC SQUARE Given the importance of a mixed-use program, we’ve designed Villa de Isla to open up onto a shared plaza to serve as the village center and front door to the development. Directly adjacent to the Healthy Bodega and Food Hall, the Civic Square will have outdoor seating for residents to eat and gather. This area will be immediately adjacent to the Villa de Isla’s large community room, which will have doors that open up onto the square and blur the boundary between private and public.

LCW & PARTNERS For the very low income families who will receive projectbased Section 8 and Massachusetts Rental vouchers, intensive case management and support services will be provided

by Community Teamwork Inc, a regional non-profit that administers these programs in Lawrence Community Works’ other properties. Lawrence Community Works also provides a range of services and programs which are available to all of their tenants and the wider Lawrence community. These include leadership development classes, community projects, adult education classes, homebuyer education, savings and financial literacy, after school programs for teens, and healthy living classes. Funding for LCW’s services and programs are embedded within their organizational funding. LCW plans to hold many of these community events and classes in Villa de Isla’s community spaces.

SPORT COURT Community residents also expressed a great need for outdoor play and recreation areas for older children and adults in close proximity to playground for younger children, so that families can spend time outside together in an activity appropriate to their age level. Villa de Isla plaza includes a hardscape sports court with basketball hoops adjacent to the playground and near the splash pad to be funded by the Kaboom! Sports Courts grant program. Similar to the splash pad, the sport court will be conveyed to the city upon completion, so will serve as a true public resource in addition to a resident amenity.

PUBLIC ART In January 2011, the Public Art Master Plan for the Union Crossing neighborhood was created by LCW in collaboration with local partners. Through public charrettes and visioning sessions, three overall themes emerged to help guide future artwork in the neighborhood: Nature, Sustainability, and History. Drawing on the rich artistic talent in Lawrence, LCW will continue to collaborate with the nearby Essex Art Center, the Photos de Nosotros Project, and the Lawrence Mural Project to celebrate these three themes. By displaying local art in the plaza as well as on the end walls of the building, Villa de Isla reflects the people and the culture of the place in a dynamic, interactive way.

-033

A Day in the Life: Villa de Isla 7

4 2

3 8

6

5 1

9 11

Villa de Isla

WEEKDAY •

(1 & 2) After school, kids grab snacks at the healthy bodega and use the homework spaces in common rooms on each floor

•

(3 & 4) Parents at home supervise the playground from the courtyard-facing apartments or from the “stoop-style” benches outside ground-floor units.

•

(5) Lawrence Community Works and Essex Art Center run after-school programming in the community room for students and Compass job training workshops at night for adults.

WEEKEND

10

•

(6) Parents use the workout room overlooking the indoor play area, so they can keep an eye on their children while the whole family gets some exercise.

•

(7) In the summer, residents use the splash pad as a way to cool off and Ferrous Park as a refuge.

•

(8) A few families use the community grills to barbecue for dinner, eating outside together in the courtyard.

HOLIDAY (4TH OF JULY) •

(9) LCW and other community groups host a festival in the civic square, with food trucks and activities for all residents of the island and the surrounding neighborhood.

•

(10) Residents of all ages attend an early evening concert in Ferrous Park.

•

(11) Residents gather for a dessert potluck of flan, paletas de coco, and tres leches cake while watching the local Lawrence fireworks along the river.

-035

The Project

SMART GROWTH

incurring excess cost, or as pure surface parking, destroying

DOWNTOWN SMART GROWTH OVERLAY

between a plinth and the street. The plinth creates a green

Villa de Isla will be a crucial piece of Lawrence’s burgeoning

courtyard in the center of the site, using the natural slope of

smart growth strategy. The city recently enacted the Lawrence

the site to facilitate a hidden parking element and a successful

TBD Urban Renewal Plan, which is centered on sustainable

green space. In addition, Island Street is extended around

growth and economic development for the future of the

the eastern side of the project to provide a complete street

city. As part of this effort, Lawrence rezoned the island site

with pedestrian and bicycle accommodations and 20 on-street

and surrounding area to align with the state’s Chapter 40R

parking and loading spaces, meeting the requirement and

Smart Growth Zoning Overlay District Act. 40R encourages

providing space for visitors and delivery activities.

the opportunity for green space on the site, the parking is split

communities to create dense residential or mixed-use zoning districts, including a high percentage of affordable housing

SUSTAINABILITY

units, located near transit stations or existing town centers.

Villa de Isla is the centerpiece of this strategy. Its vibrant mixed-use plan will allow tenants to run simple errands without getting in a car, and its proximity to the commuter rail MBTA station will allow residents to get to Boston in under an hour via train. In addition, there is a public bus stop just 750 feet from the edge of the site, with service every 30

Climate change is an existential threat facing our youngest generation. Achieving sustainability goals is a fundamental objective of this project. We completed the Enterprise Green Communities checklist. Villa de Isla far surpasses the EGC criteria, satisfying all mandatory criteria and earning 139 optional points, which is almost four times what is required.

minutes to the MBTA station, downtown Lawrence, and the nearest Market Basket grocery store.

PASSIVE HOUSE High Efficiency Energy Recovery Ventilation systems are used to achieve 84% efficiency. The single communal laundry room

PARKING As a result of the smart growth zoning and development plan, Villa de Isla will have a lower parking ratio, and the city will be able to capitalize on state 40R funding. The parking ratios for the project have been reduced to 1 space per one bedroom, 1.25 spaces per two bedroom, and 1.75 spaces per three bedroom.

The 96-unit program requires 113 parking spaces, which is quite low given Lawrence’s history of car dominance.

In order to reduce the financial and aesthetic impact of parking, Villa de Isla takes an innovative approach. Rather than placing the parking below the double loaded corridor,

minimizes venting needs associated with that program and, more broadly, unbalanced exhaust or vent spaces are limited.

The roof materials achieve an R60 rating and walls achieved an R32 rating. Due to the wood frame construction behind the brick exterior, split insulation is employed to achieve high levels of building tightness and avoid thermal bridging.

An open ground source heating pump will be used to provide main heating & cooling loads, as well as a drainwater heat recovery system, where coils around wastewater pipes collect the heat from warm showers for use in heating needs.

the gateway

a public stair/ramp connecting the civic plaza to the courtyard

Civic Plaza

Villa de Isla

SITE ENVIRONMENTAL

ENTERPRISE GREEN COMMUNITIES CHECKLIST 1. Integrative Design M 1.1a Goal Setting M 1.1b Criteria Documentation 9 of 9 1.1c Designing for Project Performance M 1.2a Res. Health + Well-Being: Design for Health M 1.2b Res. Health + Well-Being: Health Action Plan M 1.3a Resilient Comms: Design for Resilience M 1.3b Resilient Comms: Vulnerability Assessment 9 SUBTOTAL OPTIONAL POINTS 2. Location + Neighborhood Fabric M 2.1 Sensitive Site Protection M 2.2 Connections to Existing Dev. + Infra.

M 2.3 Compact Development -2.4 Compact Development M 2.5 Proximity to Services M 2.6 Preservation of + Access to Open Space 6 of 6 2.7 Preservation of + Access to Open Space 8 of 10 2.8 Access to Public Transportation 3 of 8 2.9 Improving Connectivity to the Community 5 of 5 2.10 Passive Solar Heating / Cooling -2.11 Brownfield Site or Adaptive Reuse -2.12 Access to Fresh, Local Foods -2.13 LEED for NDC 5 of 6 2.14 Local Economic Development 27 SUBTOTAL OPTIONAL POINTS 3. Site Improvements M 3.1 Environmental Remediation M 3.2 Erosion and Sedimentation Control M 3.3 Low-Impact Development M 3.4 Landscaping M 3.5a Efficient Irrigation and Water Reuse 8 of 8 3.5b Efficient Irrigation and Water Reuse 4 of 4 3.6 Surface Stormwater Management 1 of 1 3.7 Reducing Heat-Island Effect: Paving 13 SUBTOTAL OPTIONAL POINTS 4. Water Conservation M 4.1 Water-Conserving Fixtures 3 of 6 4.2 Advanced Water Conservation 4 of 4 4.3 Leaks and Water Metering 4 of 4 4.4 Efficient Plumbing Layout and Design 3 of 6 4.5 Water Reuse -4.6 Access to Potable Water During Emerg.

14 SUBTOTAL OPTIONAL POINTS

A Phase 1 Environmental Site Assessement has indicated that

6. Materials M 6.1 Low / No VOC Paints, Coatings and Primers M 6.2 Low / No VOC Adhesives and Sealants -6.3 Recycled Content Material -6.4 Regional Materials 1 of 1 6.5 Certified, Salvaged + Engineered Wood M 6.6 Composite Wood Products M 6.7a Environmentally Preferable Flooring 6 of 6 6.7b Environmentally Preferable Flooring M 6.8 Mold Prevention: Surfaces M 6.9 Mold Prevention: Tub and Shower Enclosures 8 of 12 6.10 Asthmagen-Free materials 5 of 5 6.11 Reduced Heat-Island Effect: Roofing M 6.12 Construction Waste Management 3 of 3 6.13 Recycling Storage 23 SUBTOTAL OPTIONAL POINTS

there are no known environmental issues, despite the island’s industrial history. This finding makes the project an attractive and feasible ground-up development project.

ROOFTOP SOLAR We assumed Solar ITC equity in the amount of $175,000 is generated by the $630,000 construction basis. Based on the

7. Healthy Living Environment M 7.1 Ventillation M 7.2 Clothes Dryer Exhaust M 7.3 Combustion Equipment -7.4 Elimin. of Combustion in Conditioned Space M 7.5 Vapor Retarder Strategies M 7.6 Water Drainage M 7.7 Mold Prevention: Water Heaters M 7.8 Radon Mitigation M 7.9 Garage Isolation M 7.10 Integrated Pest Management -7.11 Beyond ADA: Universal Design M 7.12 Active Design: Promoting Physical Activity 10 of 10 7.13 Active Design: Staircases + Building Circulation 9 of 9 7.14 Interior and Outdoor Activity Spaces M 7.15 Reduce Lead Hazards in Pre-1978 Buildings 10 of 10 7.16 Smoke-Free Building 29 SUBTOTAL OPTIONAL POINTS

size of the roof, it is estimated that the rooftop installation would come to 210 KW in nameplate capacity, producing 302,400 kWh per year of clean energy.

This solar installation would offset roughly 100 metric tons of CO2 annually, as compared to the ISO-New England grid, and has a positive impact on the financials of the project, generating annual operating savings of approximately $39,000.

WATER

8. Operations, Maintenance + Resident Engagement M 8.1 Building O&M Manual and Plan M 8.2 Emergency Management Manual M 8.3 Resident Manual M 8.4 Resident and Property Staff Orientation M 8.5 Project Data Collection + Monitoring System 7 of 11 8.6 Project Data Collection + Monitoring System 7 SUBTOTAL OPTIONAL POINTS 136

Groundwork

Lawrence

previously

developed

a

green

infrastructure stormwater system on the site that will provide adequate storage and treatment for the development through

TOTAL OPTIONAL POINTS (35 points required)

a natural swale. This effectively manages stormwater in a less infrastructure-intensive manner than traditional gray

rooftop solar + R60 insulation

infrastructure.

R32 wall insulation

The project is entitled to “mill power” water rights from the North Canal for free. This access be used as the “cool water” for the open ground source heat pump system and will also be

low-e windows

used for irrigation with low-flow design for green spaces on the project. ground source heat pump canal access

Ferrous Park

-037

Lawrence Bread & Roses Strike Mural

The Financials Las Finanzas

Villa Vil l de de Is IIsla sla

FINANCIAL STRATEGY

FINANCIAL OVERVIEW Villa de Isla provides high-quality, family-oriented residences

Our underwriting for Villa de Isla assumes that the project

that serve a wide range of household incomes. Our mixed-

can support approximately $9.3 million in permanent debt.

income proposal will support residents at 30, 50, and 60% of

Given Villa de Isla’s role as the keystone of the Island, and

AMI, and we believe the unique character of the community

DHCD’s willingness to consider providing up to $1.3 million in

and proximity to transit will command competitive rents for

9% credit for “large-scale, neighborhood-impact projects,”

the market-rate units.

we have proposed requesting $1.205 million in 9% credit, generating nearly $11.7 million in equity. This includes a $0.03

The financial structure for Villa de Isla involves a complex

premium on market syndication rates due to Villa de Isla’s

layering of subsidy sources, including a hybrid 9%/4% LIHTC

location in an Opportunity Zone. Similarly, the 4% portion of

execution. We have also identified financial sources for funding

the project generates approximately $4.9 million in equity.

off-site improvements as part of our plan for the Island.

We are requesting $1.4 million in Massachusetts State LIHTC, or $700,000 per 4%/9% portions of the project.

Affordability + Unit Mix 9% Rent

Revenue from Rent 1 BR - PB Sec 8/MRVP

Utility Allow

4%

# of unit

Total Rent

Rent

Utility Allow

# of unit

Total Rent

1057

(64)

4

47,664

1057

(64)

4

47,664

1 BR - High HOME

929

(64)

4

41,520

929

(64)

1

10,380

1 BR - Low HOME (50%) 1 BR - LIHTC - 90% of LIHTC rent

890

(64)

4

39,648

890

(64)

1

9,912

962

(64)

8

86,208

962

(64)

2

21,552

1 BR - Market

1250

5

75,000

1250

3

45,000

2 BR - PB Sec 8/MRVP

1357

(86)

4

61,008

1357

(86)

4

61,008

2 BR - Low HOME

1068

(86)

1

11,784

1068

(86)

1

11,784

2 BR - High HOME

1187

(86)

1

13,212

1187

(86)

2

26,424

2 BR - LIHTC - 95% of LIHTC rent

1218

(86)

10

135,840

1218

(86)

7

95,088

2 BR - Market

1450

2

34,800

1450

(86)

4

65,472

3 BR - PB Sec 8/MRVP

1700

(107)

4

76,464

1700

(107)

4

76,464

3 BR - Low HOME

1235

(107)

1

13,536

1235

(107)

1

13,536

3 BR - High HOME

1488

(107)

1

16,572

1488

(107)

3

49,716

3 BR - LIHTC - 95% of LIHTC rent

1408

(107)

5

78,060

1408

(107)

2

31,224

3 BR - Market

1800

1

21,600

1800

2

43,200

Total Units

96

Total Rent

1,361,340

Vacancy Total Revenue from Rent

55

(68,067)

5%

1,293,273

-039

41 752,916

608,424

(37,646)

(30,421)

715,270

578,003

The Financials

DEVELOPMENT BUDGET

47%

Expense ACQUISITION

Percent of units serving residents living at or below 50% AMI

As with any development project, managing

costs

is

one

of

the

main challenges of an affordable housing

developer.

The

Boston

region has experienced a dramatic increase

in

construction

costs

recently, which has been putting pressure

on

affordable

housing

projects throughout the area. Our underwriting

assumes

$260,000

per unit in hard construction costs, which is based on a construction cost estimate from our sponsor, LCW.

This

construction

estimate

included an underground garage, which is more expensive per space than the podium-style garage we have proposed, which would not require excavation.

$ PSF

% of Total

Total

9%

4%

29.47

6.97%

2,800,000

1,604,167

1,195,833

HARD COSTS Direct Construction Solar Hard Cost Subtotal

262.74 6.63 269.37

62.17% 1.57% 63.74%

24,960,000 630,000 25,590,000

14,300,000 360,938 14,660,938

10,660,000 269,063 10,929,063

Owner's Contingency HARD COST TOTAL

20.20 289.57

4.78% 68.52%

1,919,250 27,509,250

1,099,570 15,760,508

819,680 11,748,742

21.72 0.53 0.53 0.11 0.05

5.14% 0.12% 0.12% 0.02% 0.01%

2,063,194 50,000 50,000 10,000 5,000

1,182,038 28,646 28,646 5,729 2,865

881,156 21,354 21,354 4,271 2,135

0.11 0.16 0.02

0.02% 0.04% 0.00%

10,000 15,000 2,000

5,729 8,594 1,146

4,271 6,406 854

SOFT COSTS Arch & Engineering Design work (DD/SD/CD/Bid) Geotech Civil Engineer Building Envelope/Energy Audit Reimbursables Survey & Permitting Existing Conditions Survey ALTA Survey ConCom - mtgs, filing fees Environmental Testing Legal - Developer Legal - Banks Title & Recording Accounting & Cost Cert Dev Consultant Owner's Rep Real Estate Taxes Builders Risk Insurance Appraisal & Market Study Holding Costs Utilities Maintenance Security Insurance Real Estate Taxes Acquisition Interest Pre-Dev Interest Construction Loan Interest MassHousing Fees DHCD Fees Other Financing Fees Bank Inspections Soft Cost Subtotal

0.53 2.11 2.11 0.42 1.47 0.63 1.26 0.32 0.28 0.23

0.12% 0.50% 0.50% 0.10% 0.35% 0.15% 0.30% 0.08% 0.07% 0.05%

50,000 200,000 200,000 40,000 140,000 60,000 120,000 30,625 26,250 21,875

28,646 114,583 114,583 22,917 80,208 34,375 68,750 17,546 15,039 12,533

21,354 85,417 85,417 17,083 59,792 25,625 51,250 13,079 11,211 9,342

0.11 0.06 0.06 0.28 0.69 4.86 1.95 9.53 0.63 0.63 1.00 0.47 52.83

0.03% 0.01% 0.01% 0.07% 0.16% 1.15% 0.46% 2.25% 0.15% 0.15% 0.24% 0.11% 12.50%

10,500 5,250 5,250 26,250 65,625 462,000 185,000 905,341 60,000 60,000 95,000 45,000 5,019,160

6,016 3,008 3,008 15,039 37,598 264,688 105,990 518,685

4,484 2,242 2,242 11,211 28,027 197,313 79,010 386,656 60,000

60,000 54,427 25,781 2,866,810

40,573 19,219 2,152,349

Soft Cost Contingency SOFT COST TOTAL

2.64 55.47

0.63% 13.13%

250,958 5,270,118

143,341 3,010,151

107,617 2,259,967

CAPITALIZED RESERVE

3.38

0.80%

320,819

183,802

137,016

DEVELOPER OVERHEAD DEVELOPER FEE

22.04 22.67

5.22% 5.37%

2,094,011 2,154,011

1,199,694 1,234,069

894,317 919,942

422.61

100.00%

40,148,209

22,992,390

17,155,818

TOTAL Villa de Isla

SOURCES & USES Total Const.

USES Acquisition Hard Costs Soft Costs Capitalized Reserve Developer Overhead & Fee TOTAL USES SOURCES Construction Loan Permanent Loan 9% Equity 4% Equity State LIHTC City of Lawrence FHLB AHP DHCD - HOME DHCD - AHTF DHCD - HSF DHCD - CATNHP FCF CBH LCW Sponsor Loan: NWA Grant Solar Tax Credits Deferred Fee TOTAL SOURCES Surplus/(Deficit)

9% Perm

4%

Const.

Perm.

Const.

Perm.

2,800,000 27,509,250 5,270,118 2,094,011 37,673,379

2,800,000 27,509,250 5,270,118 320,819 4,248,022 40,148,400

1,604,167 15,760,508 3,010,151 1,199,694 21,574,519

1,604,167 15,760,508 3,010,151 183,802 2,433,763 22,992,390

1,195,833 11,748,742 2,259,967 894,317 16,098,860

1,195,833 11,748,742 2,259,967 137,016 1,814,260 17,155,818

18,861,270 5,844,250 2,472,859 2,625,000 270,000 500,000 1,350,000 1,800,000 1,800,000 585,000 540,000 630,000 395,000

9,289,412 11,688,500 4,945,718 5,250,000 300,000 500,000 1,500,000 2,000,000 2,000,000 650,000 600,000 700,000 395,000 175,770 154,000 40,148,400

11,087,769 5,844,250 1,312,500 250,000 675,000 900,000 900,000 270,000 315,000 20,000

4,908,333 11,688,500 2,625,000 250,000 750,000 1,000,000 1,000,000 300,000 350,000 20,000 100,558 22,992,391

7,773,501 2,472,859 1,312,500 270,000 250,000 675,000 900,000 900,000 585,000 270,000 315,000 375,000

4,381,080 4,945,718 2,625,000 300,000 250,000 750,000 1,000,000 1,000,000 650,000 300,000 350,000 375,000 75,021 154,000 17,155,818

37,673,379 -

21,574,519

-

-

16,098,860

-

-

-

MIXED-INCOME CROSS-SUBSIDIES One of the most important benefits of a mixed-income project is

sizes. However, we believe this is a conservative assumption

the capacity for cross-subsidization. Villa de Isla’s 17 market-

given the building’s prominent site, modern construction and

rate units help cross-subsidize our moderately affordable 50%

significant site amenities, all of which are unmatched in the

and 60% AMI units. Based on nearby comparable properties,

greater Lawrence market. For those reasons we expect market

the market rate units are priced at $1,250/1bd, $1,450/2bd, and

rate rents will continue to rise through the life of the project,

$1,800/3bd.

driving continued cross-subsidization and mixed-income diversity.

Villa de Isla’s most relevant competitors are Washington Mills,

SECTION 8

Museum Square and Riverwalk Lofts, all located within a

Based on LCW’s direction, we have assumed that we can secure

10-minute walk of the site. These properties show the growing

24 Project-Based Section 8/MVRP vouchers for the project,

potential for market-rate profitability in Lawrence, especially

providing housing to 30% AMI residents while also cross-

in this district, achieving overall rents of $1.40-$1.45psf.

subsidizing the 50% and 60% AMI units.

Villa de Isla market rate units are underwritten at a slight discount to these comparables due to the high proportion of affordable units in the building and the slightly smaller unit -041

The Financials

SOFT FUNDING

UNIQUE FUNDING SOURCES

In addition to federal and state LIHTC equity, we have assumed

Our project features some unique funding sources as well,

that our project would maximize a variety of soft funding

including

sources. These sources include DHCD HOME, Affordable

Consolidation Fund, the Community-Based Housing Fund,

Housing Trust Fund (AHTF), Housing Stabilization Fund (HSF),

a NeighborWorks America grant, solar tax credits, and a

and Commercial Area Transit Node Housing Program (CATNHP)

proposed reduction in real estate taxes.

grants

from

the

Commonwealth’s

Facilities

funds, FHLB Affordable Housing Program (FHLB AHP) grants, and a contribution of the City of Lawrence’s HOME funding.

OPERATING PRO-FORMA INCOME Potential Gross Residential Revenue Vacancy (5%) Effective Residential Income Other Revenue - Laundry Other Revenue - Market Rate Parking + Pets Other Revenue - Storage EFFECTIVE GROSS INCOME

Stabilized Y1 1,361,340 (68,067) 1,293,273 23,211 19,125 42,750 1,378,359

2 1,395,374 (69,769) 1,325,605 23,791 19,603 43,819 1,412,818

3 1,430,258 (71,513) 1,358,745 24,386 20,093 44,914 1,448,138

4 1,466,014 (73,301) 1,392,714 24,996 20,596 46,037 1,484,342

5 1,502,665 (75,133) 1,427,531 25,621 21,110 47,188 1,521,450

6 1,540,231 (77,012) 1,463,220 26,261 21,638 48,368 1,559,487

7 1,578,737 (78,937) 1,499,800 26,918 22,179 49,577 1,598,474

15 1,923,538 (96,177) 1,827,361 32,796 27,023 60,405 1,947,585

EXPENSES Administrative Management Fee Payroll, Admin, Taxes & Benefits Legal, Audit, Monitoring Fees General Administrative Subtotal

75,089 137,643 25,977 28,306 267,014

77,342 141,772 26,756 29,155 275,025

79,662 146,025 27,559 30,030 283,275

82,052 150,406 28,386 30,931 291,774

84,513 154,918 29,237 31,859 300,527

87,049 159,566 30,114 32,814 309,543

89,660 164,353 31,018 33,799 318,829

113,579 208,197 39,293 42,815 403,883

Maintenance Security Resident Services Utilities Replacement Reserve Real Estate Taxes Other Taxes Insurance TOTAL EXPENSES

219,924 8,601 36,000 83,703 28,800 55,977 512 79,876 780,406

226,522 8,859 37,080 86,214 29,664 57,656 527 82,272 803,818

233,317 9,124 38,192 88,801 30,554 59,386 543 84,740 827,932

240,317 9,398 39,338 91,465 31,471 61,167 559 87,283 852,770

247,526 9,680 40,518 94,208 32,415 63,002 576 89,901 878,354

254,952 9,970 41,734 97,035 33,387 120,000 593 92,598 959,812

262,601 10,270 42,986 99,946 34,389 123,600 611 95,376 988,606

332,655 13,009 54,453 126,608 43,563 156,573 774 120,820 1,252,337

NET OPERATING INCOME DEBT SERVICE DSCR NET CASH FLOW

597,954 504,816 1.18 93,138

609,000 504,816 1.21 104,184

620,206 504,816 1.23 115,390

631,571 504,816 1.25 126,756

643,097 504,816 1.27 138,281

599,675 504,816 1.19 94,859

609,867 504,816 1.21 105,052

695,248 504,816 1.38 190,432

Our proforma reflects conservative revenue and expense

For the market-rate units, we have assumed parking and pet

growth rates of 2.5% and 3%, respectively. Our expense

fees, based on comparable properties in the area. Because we

budget includes $375/unit of resident services, a temporary

have heard that storage is a desired amenity for residents,

real estate tax abatement, and significant utilities savings due

the project includes 50 storage units (5’x5’x10’) in the

to near passive house design and solar energy usage.

basement, renting for $75/month. This price reflects a small convenience premium over local self-storage facilities as the units are located within the building.

Villa de Isla

40R INFRASTRUCTURE FUNDS

SPORT COURT

Villa de Isla’s 96 units will generate $288,000 ($3k/residential

KaBOOM! is a national non-profit dedicated to bringing play

unit) in 40R infrastructure funding that could be used towards

into the daily lives of children, with a focus on kids living

improvements in the area. We suggest that the City earmark

in poverty. KaBOOM! uses a one-day “playground build” that

those funds to fund the construction of the new plaza and

allows a community to quickly implement a public benefit.

assist with the road improvements associated with Villa de

We recommend that LCW and Groundworks Lawrence apply

Isla’s design.

for KaBOOM!’s Sport Court grant program and effectively gather community support for the project. This sport court

PLAZA SHADE STRUCTURE

Build Day could be incorporated as part of the grand-opening

The American Academy of Dermatology Shade Structure Grant

ceremonies for Villa de Isla!

Program awards grants up to $8,000 to schools and nonprofits to construct permanent shade structures in outdoor

TRAIL

locations.” Groundworks Lawrence or LCW could be eligible to

The Island currently features a trail that winds through Ferrous

apply for this grant for the civic square. Perhaps there is a local

Park and follows the north shore of the Merrimack River. The

Lawrence dermatologist who can make the recommendation!

Federal Highway Administration’s (FHWA) Transportation Alternatives-Set Aside program for pedestrian and bicycle

SPLASH PAD

infrastructure would fund the planning of new improvements

The City recently installed a splash pad in one of its parks.

to the trail, such as building additional pedestrian bridges

We’ve heard that from June to September it is one of the most

across the North Canal.

beloved (and popular) places to be for families and kids. We think the Island is a perfect place for the City to install its

DYE WORKS BUILDING REDEVELOPMENT

second splash pad, and have proposed that they build it on the

LCW has a unique opportunity to create a new commercial

northwest corner of Ferrous Park (see site plans).

hub on the Island in the existing Dye Works Building. LCW envisions a healthy bodega program occupying the space. This project could be funded in part by a combination of tax credits,

off-site funding

opportunity zone investment, and grants. The building is historic and would be eligible for federal and state Historic Tax Credits. Commercial uses are eligible for New Market Tax Credits, and combined with its location in an Opportunity Zone, there could be significant investor interest. Additionally, there may be funding available through the Centers for Disease

We were inspired by LCW and the

Control that could support the creation of the bodega.

community’s vision for the future of the Island and wanted to use Villa de Isla as the catalyst project to help make that vision a reality.

Sources: https://www.aad.org/members/volunteer/shade-structure-program https://kaboom.org/grants/sports_courts

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Summer Mural Arts Program

by Essex Arts Center

o-site

Implementation ImplementaciĂłn

BUILDING A VILLAGE

DEVELOPMENT PHASING Successfully implementing a development centered around

to slow the pre-construction process. However, given the

families will require careful planning and coordination among

complex hybrid 9%/4% execution, securing all the necessary

multiple stakeholders. This section outlines the steps LCW

financing will likely be time consuming even with the state’s

will need to take in order to bring the vision to life.

preliminary endorsement. As a result, the full pre-construction

With a compelling vision to align political willpower at the city

period is projected to be about 2.5 years. After breaking ground

and state level, we anticipate Villa de Isla could be stabilized

at the end of 2021, the construction period is anticipated to be

and occupied in just over five years. Assuming a 24-month

24 months. LCW will prioritize the inclusion of women and

construction period beginning in mid-2021, 90 additional

minority-owned businesses to the greatest extent possible

families could be living on the island by the end of 2024.

throughout this process. Due to the high demand for quality

As LCW has been working closely with the city of Lawrence

aordable housing, Villa de Isla is should stabilize in under a

on the smart growth rezoning, and the site is currently

year after the completion of construction.

underutilized, we do not anticipate significant local pushback

2019

2020

2021

PRE-CONSTRUCTION Community Input Financing Applications Public Approval + Entitlement Architectural Drawings Financial Closing CONSTRUCTION Construction Documents Demolition + Site Work Foundation Vertical Construction Certificate of Occupancy LEASE UP Marketing and Lease Up Stabilization

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2022

2023

2024

NEIGHBORHOOD TIMELINE JULY

2020

United Windows vacates the existing facility at 20-30 Island Street

DEC

2020

JULY

2021 AUG

2021

DEC

2021

With the successful award of FHWA TA-Set Aside money for a planning study for the Spicket River Trail in the 2020 funding cycle, planning work commences

Dye Works Building Funding: New Market Tax Credits/Historic Tax Credits August 2021: Pre-Development Begins March 2024: Tax Credits Obtained March 2026: Healthy Bodega Grand Opening

The Pre-development period for Villa de Isla concludes and construction begins With construction underway at the catalytic housing project, LCW begins the predevelopment work for the Dye Works Building in anticipation of the successful completion of Villa de Isla The Spicket River Trail study is completed, outlining steps for implementation. City of Lawrence oďŹƒcials work with MassDOT to identify funding for implementation

JUNE

2023

The Spicket River Trail is integrated into MassDOT six-year capital program

JULY

2023

MARCH

2024

JULY

2024

Construction finishes on Villa de Isla and lease up begins.

With the extension of Island Street completed as part of this work, the City uses park funds to build the splash pad, Ferrous Park parking, and new civic green to complete the public park vision After a 2.5-year pre-development period, appropriate Historic Tax Credit and New Market Tax Credits are obtained for the Dye Works Building to move forward Construction of the new park elements is completed

MARCH

2026

The new healthy bodega, spurred by the new demand from increased activity on the East Island, opens at the revitalized Dye Works Building

JULY

2028

The Spicket River Trail is completed, creating a new safe connection for pedestrians and bicyclists of all ages to Lawrence General

Improvements to Civic & Open Spaces Funding: City of Lawrence Park Funds/Kaboom/American Academy of Dermatology June 2023: LCW dedicates land to City of Lawrence July 2023: Construction Begins on New Open Space Amenities July 2024: Construction Completed on New Open Space Amenities

Shared Street Improvements Funding: 40R July 2021: Pre-Dev. Ends & Construction Begins July 2023: Construction Ends & Parking is Open to Public

Trail Connections: 2028: The Spicket River Trail is completed, creating a new safe connection for pedestrians and bicyclists of all ages to Lawrence

Villa de Isla: July 2021: Pre-Development Ends and Construction Begins July 2023: Construction Ends and Lease-up Begins

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Villa de Isla

The Conclusion La Conclusión Villa de Isla directly ties design and planning choices to the needs of low-income communities raising children. The project weaves lively and interactive recreation spaces into the fabric of the building and the island, prioritizing the city’s youngest and most vulnerable residents.

More broadly, Villa de Isla facilitates a transformation of the East Island neighborhood into a community in every sense of the word, designed specifically for the families of Lawrence. It houses the community by providing deeply needed aordable 2 & 3 bedroom apartments. It feeds the community by programming a culturally responsive healthy market. It strengthens the community by providing a range of age-appropriate programming and services in a transit-oriented context. It unites the community by creating safe public and private spaces where residents can gather and children grow up healthy and happy.

It takes a village.

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