The Malden Housing Authority will spend more than $11 million to make its public housing units more energy efficient, work officials believe will pay for itself.
>The 250-unit complex has a central power plant with utilities distributed to each building through pipes installed in the 1950s. The pipes are in poor condition, Finn said, which results in uneven distribution of heat and water pressure. “Those pipes are a problem; they are aging in place,” he said.
The new system will feature one energy-efficient boiler for every two units in the 58 Housing Authority buildings on Newman Road, Finn said. The old pipes will remain and could be used by the authority or the city as underground electricity conduits, he said. The work on Newman Road is expected to cost $4.3 million.
The Housing Authority received the 20-year $11.27 million bond through MassDevelopment , an entity created by the Legislature in 1998 to act as a finance and development authority.
“We’re pleased to support the Malden Housing Authority with this low-cost financing to improve homes for low-income families, reduce the cost of utilities for the authority’s developments, and to support the Commonwealth’s goal of improving energy technologies and efficiencies, resulting in reduced cost,” MassDevelopment chief executive Marty Jones said in a prepared statement.
For the bond financing agreement, the authority will pay a fixed interest rate of 4.12 percent to East Boston Savings Bank, which is loaning the funds. But the bank was only able to do that by entering into an interest-rate swap agreement with another institution, PNC Bank.
The move allowed East Boston Savings Bank to offer a fixed-rate loan, which the Housing Authority needed in order to comply with federal housing standards, said Joseph Leary, vice president of East Boston Savings Bank.<
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