A proposed 35-unit affordable apartment building at 1186 Walnut St. in Newton Highlands is seeking $2 million in Community Preservation Act funding.

The request was scheduled for consideration by Newton’s Community Preservation Committee on Tuesday, Oct. 13. Terra Living Partners is sponsoring the development with consultant Arx Urban, according to the meeting application.

All 35 apartments would be income-restricted. The application lists a total development cost of approximately $26.85 million and identifies the requested CPA funds as the remaining local contribution in its proposed financing package.

The CPC makes funding recommendations to the City Council, which has final authority to approve CPA appropriations, according to the city’s explanation of the program.

Proposed apartments and income limits

The October application proposes 12 apartments for households earning at or below 30% of area median income, 17 at or below 60% and six at or below 80%.

The building would contain one studio, 19 one-bedroom, 11 two-bedroom and four three-bedroom apartments. The 15 apartments with two or three bedrooms represent approximately 43% of the total.

The application calls for an affordability deed restriction lasting at least 40 years.

An earlier version on the city’s project page lists a different budget and a 50% income limit for the middle tier. The figures above reflect the October application.

Financing still depends on awards

The application reports that the Newton Affordable Housing Trust committed $150,000 on Aug. 20.

Other anticipated sources include approximately $9.1 million in federal Low-Income Housing Tax Credit equity, $7.2 million in state tax-credit equity, $3.5 million in state subordinate debt and a $4.7 million first mortgage.

Those sources are listed as expected rather than secured. The proposed $2 million CPA contribution and a deferred developer fee of approximately $154,000 would complete the financing package.

Design and next steps

The proposed six-story building would be all-electric, designed to Passive House standards and include rooftop solar. The application also identifies Enterprise Green Communities, LEED and Energy Star certification as targets.

According to the application, the project qualifies for development by right under Newton’s Village Center Overlay District zoning and does not require a special permit, variance or parking relief.

The development team is pursuing state housing funding through a full application due Dec. 3. If funding is awarded, the application anticipates a financial closing in the fourth quarter of 2027, with construction continuing through early 2030.

Those dates remain dependent on financing and the steps needed to begin construction.