The Housing Corporation of Arlington has received $2.1 million in state subsidies and $2.4 million in federal tax credits for what housing officials said is the in about 30 years.
The funding will be used for the 32-unit Capitol Square Apartments renovation, a $9 million project at 252, 258-260 Massachusetts Ave. in East Arlington.
The funding is part of $64.5 million in affordable housing resources and credits statewide. State officials said the sum will support 25 rental developments in 15 communities across Massachusetts. The developments will create or preserve 1,071 rental units, 977 of which will be affordable to low and moderate income working families, according to state officials.
David Levy, executive director of the Housing Corporation of Arlington, said the money will be disbursed in two stages. State subsidies can be used at the beginning of the project, reimbursing project developers for consultants, attorneys and other services as outlined by the state. Tax credits begin to trickle in once the affordable housing units are rented.
Levy explained the tax credits will be sold to investors at a market-dictated rate for less than dollar-per-dollar. Those investors can then use the credits for the maximum amount of $241,233 yearly for 10 years.
State officials expect the tax credits to yield about $1.9 million, according to a spokesperson for the state Department of Housing and Community Development.
Levy that the prices of the 32 apartments, which are all currently one-bedroom, range from about $900 to $1,250 per month, including heat and hot water. After renovations, six of the apartments will be studios, 17 one-bedroom and nine two-bedroom. Rent has not yet been finalized, but the studios will likely be in the $800s, one-bedrooms in the low $900s and two-bedrooms around $1,100 including heat and hot water.
The project is expected to be finalized early 2013.