Housing Groups and Pizzigalli Craft Deal to Preserve Low-Income Housing

Source: 7days Blurt Staff Blog, Posted by Shay Totten on January 28, 2011

As Seven Days noted last year, Pizzagalli Properties put Wharf Lane on the market. It’s one of thousands of affordable housing complexes built 30 years ago using taxpayer-subsidized mortgages and rental subsidies provided by the U.S. Department of Housing and Urban Development. The deal was: At the end of the mortgage, the developers would have the option to sell the low-income housing to the highest bidder. A recent private appraisal reportedly estimates the building’s market value at $4.8 million, more than double the city’s 2006 assessment of $1.6 million. The lower figure reflects the building’s current use: home to 37 units of affordable housing. The higher number measures potential revenues based on converting those into high-rent units for college students. Dettman did not disclose the purchase price for either property. “We will be executing separate purchase and sale agreements,” said Dettmen. “However, closing on Bobbin Mill will take place at a later date, no later than December 2012.” Link to article: Housing Groups and Pizzigalli Craft Deal to Preserve Low-Income Housing

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