MassDevelopment Financing Supports Conversion of Former South Boston Convent into Senior Housing

September 15, 2026

Kiara Ford, 978-844-1380
kford@massdevelopment.com

BOSTON – MassDevelopment issued a $7,760,000 tax-exempt bond on behalf of 207 E Street LLC, an affiliate of South Boston Neighborhood Development Corporation, to convert the vacant former St. Augustine’s convent at 207 E St. in South Boston into senior housing. Eastern Bank purchased the tax-exempt bond, which helped the organization achieve a lower cost of capital.

In addition to the tax-exempt bond, MassDevelopment assisted the Massachusetts Executive Office of Housing and Livable Communities with the approval of federal tax credits that will provide approximately $11.7 million in equity for the project.

“Housing is essential to strong communities and a strong economy,” said Economic Development Secretary Eric Paley, Chair of MassDevelopment’s Board of Directors. “By transforming the former St. Augustine’s convent into senior housing, we are carrying this historic property’s legacy forward while helping older adults remain rooted in the South Boston neighborhood they call home.”

“Housing is about making sure people can live with dignity, stability and connection to the communities they call home,” said Housing and Livable Communities Secretary Juana Matias. “By transforming a long-vacant convent into 36 homes for older adults, this project will create new housing opportunities while preserving an important part of the South Boston neighborhood. This is all part of the Healey-Driscoll Administration's commitment to building more housing and lowering costs for everyone.”

“The redevelopment of this historic building is the latest example of how South Boston Neighborhood Development Corporation is working to meet the needs of its community by creating and maintaining affordable housing options,” said MassDevelopment President and CEO Navjeet Bal. “MassDevelopment is pleased to partner with Eastern Bank in support of the organization as it creates 36 new affordable homes for seniors in South Boston.”

The former St. Augustine’s convent opened in 1895. In 2008, the Paraclete Foundation acquired the building to provide educational and after-school programs for local youth and ceased these operations during COVID-19. In 2022, South Boston Neighborhood Development Corporation entered into a below-market purchase agreement with the Paraclete Foundation to buy the building. The Paraclete Foundation uses proceeds from the sale to fund scholarships for local youth.

Once converted to housing, the building will feature 36 one-bedroom units. South Boston Neighborhood House, a local human services agency, will provide supportive services for residents. Construction is underway and the organization expects it to be completed in early 2028.

“Every older adult deserves a safe, stable and affordable place to call home, and community development lending expertise is one way we at Eastern help to make that possible,” said Yongmei Chen, Senior Vice President, Commercial Group Director of Community Development Lending of Eastern Bank. “Beyond purchasing the tax-exempt bond, we are deepening our commitment with a construction bridge loan and an equity investment, working with MassDevelopment and South Boston Neighborhood Development Corporation to expand affordable housing options in South Boston. We thank everyone involved for coming together to bring more affordable senior housing to this neighborhood and its residents.”

“Strong partnerships are essential to advancing secure and affordable housing in the communities we serve,” said Turahn Dorsey, President and CEO of the Eastern Bank Foundation. “We are proud to support the renovation of the vacant former St. Augustine’s convent through a philanthropic grant so more low-income seniors can access safe, affordable housing in the community they call home.”

“McDevitt Senior Homes represents more than a new building — it’s a commitment to our seniors and to preserving the fabric of South Boston,” said Donna Brown, Executive Director of South Boston Neighborhood Development Corporation. “As housing costs rise, too many older adults face the risk of displacement. This development ensures that seniors who helped build this neighborhood can remain here with stability, dignity, and community. We are deeply grateful to MassDevelopment and to all of our public and private funding partners whose investment, collaboration, and belief in this project made McDevitt Senior Homes possible. Their support is helping create not just affordable housing, but a lasting resource that will benefit South Boston seniors for generations to come."

MassDevelopment previously supported South Boston Neighborhood Development Corporation with a $6.2 million tax-exempt bond and $414,000 award from the Brownfields Redevelopment Fund in 2015 to build 24 units of affordable housing for low-income veterans in South Boston, a joint venture with Caritas Communities.

South Boston Neighborhood Development Corporation has created and preserved affordable housing for South Boston residents since 1983. A state-certified community development corporation, the organization also provides quality-of-life programming and economic development to increase community engagement.

MassDevelopment strengthens communities and advances economic opportunity across Massachusetts through financing, real estate services, and technical assistance. Working with businesses, nonprofits, developers, lenders, and municipalities, the agency financed or managed 538 projects in fiscal year 2026, generating more than $6.52 billion in investment, supporting an estimated 42,113 jobs, and helping create or preserve 4,355 housing units.