HAP, Inc.
SPRINGFIELD
HAP, the regional housing partnership for Hampden and Hampshire counties, plays an extremely important role in providing affordable housing and services in western Massachusetts.
In 2001, after meeting with Peter Gagliardi and his team, The Life Initiative made its first investment with HAP. The loan was a line of credit designed to help HAP increase its activity in acquiring small lots and developing one and two family houses. These houses were then sold to first time homebuyers. The line of credit has been renewed a number of times and has allowed the organization to move more quickly and complete more projects than previously possible. Over 50 affordable homeownership units have been built or rehabilitated throughout Hampden and Hampshire counties, including Chicopee, Palmer, Orange and Springfield.
In 2006, HAP began to focus on a painstaking, but crucial program to stabilize the Old Hill neighborhood of Springfield. HAP, along with major institutions along the State Street Corridor including Massachusetts Mutual Life Insurance Company, Springfield College, Springfield Neighborhood Housing Services, the Urban League and the City of Springfield, completed a comprehensive planning process, calling for a sustained effort to revitalize the Old Hill neighborhood. This neighborhood had experienced extremely low ownership rates, property tax foreclosure, and vacant and burned out homes. The neighborhood revitalization plan complements the overall State Street Corridor Project, which will result in a new streetscape along the neighborhood’s edge. HAP, along with its partners, plan to selectively build up to 150 new homes or rehab distressed properties at pivotal locations, to restore the stability of the market and begin to build confidence in Old Hill.
In order to implement this ambitious revitalization plan, HAP needed a line of credit that would allow the organization to move forward quickly with the construction of the key properties. Since TLI had provided a similar loan to HAP, and was very familiar with the organization, it was a straightforward process for TLI to underwrite a loan to support the Old Hill plan.
Phase 1 of the project is now complete, resulting in six new homes occupied by first time homebuyers. The second phase, consisting of four new homes began in 2009.