BOSTON – October 15, 2024 – MassHousing has closed on $22 million in financing to North Shore Community Development Coalition (NSCDC) for the redevelopment of two former school buildings near downtown Salem into 61 new affordable rental homes for residents with a range of incomes.
The new housing will be developed in separate school buildings located approximately 1.5 miles apart at 160 Federal St. and 13 Hawthorne Blvd. Hawthorne Lofts will include 29 rental units with an artist preference, and the Federal Street development, Residences at St. James, will have 32 rental units, all of which will be restricted to households with at least one-member aged 62 or older.
"MassHousing is excited about this opportunity to partner with North Shore Community Development Coalition to transform two vacant school buildings in the heart of Salem into 61 new rental homes that will be affordable to residents with various incomes," said MassHousing CEO Chrystal Kornegay. "This new housing will be developed on prime locations in the city and offer residents access to the many amenities, services and public transit in greater Salem."
"We are thrilled to bring new life to these historic buildings and create much-needed affordable housing in Salem," said NSCDC CEO Felicia Pierce. "This project reflects our deep commitment to serving a diverse range of residents from artists to seniors and beyond while preserving the rich history and culture of our community. Through this redevelopment, we are not just building homes; we are fostering vibrant, inclusive communities where people can thrive. We are grateful for the support of MassHousing and our many partners who made this vision possible."
MassHousing is providing NSCDC with $19.1 million in tax credit bridge financing, $2.4 million in permanent financing and $500,000 in Middle Income Housing financing.
Additional funding sources included $18.5 million in federal and state Low Income Housing Tax Credit financing allocated by the Massachusetts Executive Office of Housing and Livable Communities (EOHLC), $9.8 million in federal and state Historic Tax Credit financing, $25 million in construction financing from TD Bank, a total of $8.8 million in American Rescue Plan Act financing through the Affordable Housing Trust Fund and the City of Salem, $1 million in direct support from EOHLC, $750,000 from the Community Economic Development Assistance Corporation (CEDAC), $500,000 in Salem CPA funds, and $300,000 in local HOME funds. The tax credit syndicator and investor for the federal LIHTCs and federal HTCs is Stratford Capital Group and the tax credit syndicator and investor for the state LIHTCs and the state HTCs is Dorfman Capital.
Both development parcels are situated within walking distance of downtown Salem and offer proximity to various amenities such as restaurants, shops, museums and cultural attractions, as well as a MBTA commuter rail station and bus routes.
Hawthorne Lofts will have seven studios, 18 one-bedroom units, and four two-bedroom units with community art space and an artist preference for residents. Ten of the units will be restricted to households earning up to 30 percent of the Area Median Income (AMI) and supported by the Massachusetts Rental Voucher Program, 14 units will be restricted to households earning up to 60 percent of AMI and five units will be restricted to households earning up to 80 percent of AMI.
Residences at St. James will have 11 studios, 19 one-bedroom units, and two two-bedroom units, all of which will be restricted to households with at least one-member aged 62 or older. Eight of the apartments will be restricted to households earning up to 30 percent of AMI and supported by federal Section 8 housing subsidy, and 24 units will be restricted to households earning up to 60 percent of AMI.
The development plan includes enhanced energy efficiency measures such as repointing historic masonry and increasing insulation. Water conservation will be achieved with the use of low-flow fixtures. For improved air quality, interior paints and sealants with no volatile organic compounds (VOCs) will be employed and kitchen exhausts will be ducted externally, promoting better air circulation and overall resident well-being.
The project consultant is New Seasons Development, LLC. The general contractor is NEI General Contracting, the architect is ICON Architecture, and the management agent will be Peabody Properties, Inc. Construction is expected to be completed in December 2025.
About North Shore Community Development Coalition
North Shore CDC invests in neighborhoods to create thriving communities. They envision a North Shore where every neighborhood is one of choice and opportunity. They use their community-focused development model to invest resources into low-income or distressed neighborhoods on the North Shore to improve the quality of life for residents. They are committed to the community through affordable housing, economic and youth development, community engagement, small business assistance, and public art and placemaking. They serve more than 1,000 individuals in more than 450 affordable apartments and more than 3,000 individuals in their other programming. For more information, please visit www.northshorecdc.org.
About MassHousing
MassHousing (The Massachusetts Housing Finance Agency) is an independent, quasi-public agency created in 1966 and charged with providing financing for affordable housing in Massachusetts. The Agency raises capital by selling bonds and lends the proceeds to low- and moderate-income homebuyers and homeowners, and to developers who build or preserve affordable and/or mixed-income rental housing. MassHousing does not use taxpayer dollars to sustain its operations, although it administers some publicly funded programs on behalf of the Commonwealth. Since its inception, MassHousing has provided approximately $29 billion for affordable housing. For more information, follow us on Twitter, Facebook, Instagram and LinkedIn.
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