The Champlain Housing Trust has purchased South Meadow Apartments in Burlington’s south end for $19 million. Built 25 years ago, South Meadow is home to 148 apartments, including 40 affordable ones. Over the last thirty years, no residential property in Chittenden County has had a higher sale price, and only four have been higher in the State of Vermont.
“We are excited by this opportunity presented to us by Rich Feeley of Coburn Feeley and supported by the City of Burlington to purchase South Meadow,” said Brenda Torpy, Champlain Housing Trust CEO. “Rich has been a good steward of this housing, and we are happy to be able to preserve and expand affordability, including the creation of new homeownership opportunity in the years to come. For now, though, rents will stay the same and residents shouldn’t see much change if any at all.”
Burlington Mayor Miro Weinberger and the Burlington City Council recommitted the original financing from the US Department of Housing and Urban Development to preserve the affordability of the housing at South Meadow. The property’s owners paid back $4.67 million in federal funding to the City earlier this year.
“In Burlington's long-term battle to keep the City affordable, November 2, 2012 is a big win,” said Mayor Miro Weinberger. “Congratulations to Champlain Housing Trust and Rich Feeley for successfully closing on an agreement that will keep South Meadow an affordable community.”
In addition to the City’s rededication of funds, resources for the $19 million sale (and $500,000 in closing costs and transaction fees) came from TD Bank in the form of a $9.8 million loan and $4.5 million in financing from Community Housing Capital. Community Housing Capital provides financing to NeighborWorks® organizations like CHT nationwide. The current owners are investing $600,000 as well.
While there will not be any immediate changes to rent or tenure, over the next two-to-five years the Champlain Housing Trust plans to expand the number of affordable apartments at South Meadow from 40 to 64, and to create 32 new homeownership opportunities, including both market rate and resale-restricted affordable ones.
CHT will notify South Meadow residents of a community meeting in the near future to discuss the future plans for the property, including the conversion of some of the rentals to condominiums, rehab work to be undertaken and efforts to keep all tenants as renters or owners. All South Meadow residents will be offered free homebuyer education and financial counseling.
The Champlain Housing Trust, founded in 1984, is the largest community land trust in the United States. Throughout Chittenden, Franklin and Grand Isle counties, CHT owns and manages approximately 1,750 apartments, stewards over 510 owner-occupied homes in its signature shared-equity program, and provides services to five housing cooperatives and other resident-controlled housing that is home to 460 households. CHT also provides homebuyer education and financial counseling and offers affordable energy efficiency and rehab loans. In 2008, CHT won the prestigious United Nations World Habitat Award, recognizing its innovative, sustainable programs.