The Neighborhood Developers (TND) is transforming a former market-rate development into mixed-income housing in Chelsea, Massachusetts.
After acquiring the 32-unit property in 2019, the nonprofit is extending the long-term affordability of the development to households across a range of incomes, from very low to middle-income households, said officials.
MassHousing announced that it has closed on a total of $5.5 million in financing—a $4.9 million permanent loan and $650,000 from the agency’s Workforce Housing Initiative—that will allow TND to rent 30 of the previously unrestricted units to income-eligible households across a range of incomes, while two apartments will be rented at market rates.
Eight apartments will be subsidized with federal housing vouchers and restricted to households earning up to 30% of the area median income (AMI), and nine apartments will be restricted to households earning up to 60% of the AMI. There will be 13 workforce housing units, of which six will be restricted to households earning up to 80% of the AMI and seven for households earning up to 120% of the AMI. The AMI for Chelsea is $119,000 for a family of four. According to officials, none of the existing tenants will be displaced.
“By converting existing market-rate apartments to affordable homes with long-lasting affordability protections, this transaction will help ensure that Chelsea residents facing rising rents will be able to continue living and working in this vibrant city,” said MassHousing executive director Chrystal Kornegay. “TND is a mission-oriented housing developer, and MassHousing is pleased to partner with them on this exciting project.”
The transaction also involved $1 million in financing from the Massachusetts Department of Housing and Community Development (DHCD), $1.1 million from the Affordable Housing Trust Fund, which MassHousing manages on behalf of DHCD, approximately $1.5 million in state HOME funds, $700,000 in local HOME funds provided by the North Suburban Consortium through the Malden Redevelopment Authority, $640,000 in financing from the Community Economic Development Assistance Corp. (CEDAC), and $238,052 from a TND loan fund.
CEDAC also provided $8.5 million in acquisition financing in partnership with LISC Boston’s Equitable Transit-Oriented Development Accelerator Fund and supported by Partners HealthCare, now known as Mass General Brigham, and other fund investors.
181 Chestnut Street was originally built as a school and convent and was converted to housing in 2015. It is within walking distance to retail shops, restaurants, and the city’s commuter rail station and serviced by multiple bus routes. The property is managed by WinnCompanies.
TND is a community development corporation founded in 1978 in Chelsea. TND promotes economic diversity, opportunity, and quality of life in the communities of Chelsea, Revere, and Everett.
