Two former school buildings will be converted into 61 affordable homes in Salem, Massachusetts.
The new housing will be developed in separate structures approximately 1.5 miles apart. Hawthorne Lofts will include 29 rental units with an artist preference, and Residences at St. James will have 32 rental units, all of which will be restricted to households with at least one member who is 62 or older.
MassHousing has closed on $22 million in financing to North Shore Community Development Coalition (NSCDC) for the project.
“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.”
Hawthorne Lofts will have seven studio, 18 one-, and four two-bedroom units with community art space. Ten units will be restricted to households earning up to 30% 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% of the AMI, and five units will be restricted to households earning up to 80% of the AMI.
Residences at St. James will have 11 studio, 19 one-, and two two-bedroom units, all of which will be restricted to households with at least one member 62 or older. Eight apartments will be restricted to households earning up to 30% of the AMI and supported by federal Section 8 housing subsidy, and 24 units will be restricted to households earning up to 60% of the 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 will be employed, and kitchen exhausts will be ducted externally, promoting better air circulation and overall resident well-being.“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 from its middle-income housing program.
Additional funding sources included $18.5 million in federal and state low-income housing tax credit (LIHTC) financing allocated by the Massachusetts Executive Office of Housing and Livable Communities (EOHLC), $9.8 million in federal and state historic tax credit (HTC) financing, $25 million in construction financing from TD Bank, $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 Corp., $500,000 in Salem Community Preservation Act 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.
The project consultant is New Seasons Development. The general contractor is NEI General Contracting, the architect is ICON Architecture, and the management agent will be Peabody Properties.
