Preserving Affordable Housing in Salem
North Shore CDC Uses $8.2 Million Tax-Exempt Bond from MassDevelopment & Eastern Bank to Buy, Renovate & Preserve Long-Term Affordability of 18 Apartments in Salem’s Point Neighborhood
May 17, 2023
Matthew Mogavero, 857-248-0868
mmogavero@massdevelopment.com
Ashley Ganem, North Shore CDC
978-745-8071
 |
| Photo of the building located at 37 Ward St. in Salem, courtesy of North Shore CDC |
SALEM, Mass. – MassDevelopment has issued an $8,224,540 tax-exempt bond on behalf of New Point Family Housing LLC, an affiliate of North Shore Community Development Coalition (North Shore CDC), which will use proceeds to buy, renovate, and equip three rental housing facilities totaling 18 units located at 96 Congress St., 52 Peabody St., and 37 Ward St. in Salem’s Point neighborhood. The buildings, built between 1915 and 1920, feature 10 two-bedroom units and eight three-bedroom units. As part of this project, North Shore CDC will preserve all 18 units as affordable for the long term; eight units will be rented to households earning no more than 50% of area median income (AMI) ($70,100 for a four-person household) and 10 units will be rented to no more than 30% of AMI ($42,050 for a four-person household). Eastern Bank purchased the bond, which helped North Shore CDC achieve a lower cost of capital.
“North Shore CDC’s success in expanding access to housing and economic opportunity in Salem’s Point neighborhood cannot be overstated,” said MassDevelopment President and CEO Dan Rivera. “MassDevelopment is glad to be a continued partner in this effort and provide tax-exempt financing to help the nonprofit modernize three buildings and ensure 18 apartments remain affordable for years to come.”
“Eastern Bank is proud to work with MassDevelopment in support of North Shore Community Development Coalition’s longstanding and critical focus on building and preserving affordable housing in Salem and other North Shore communities,” said Eastern Bank Vice President, Community Development Lending Angela Meehan. “The renovation of these buildings will bring eighteen units of permanent affordable housing to the Point neighborhood, strengthening individuals, households, and families.”
“The City of Salem is thrilled to continue our partnership with groups like North Shore CDC and MassDevelopment,” said Salem Acting Mayor Robert “Bob” McCarthy. “It will remain a priority for our teams to continue to offer solutions to combat housing insecurity as it is a critical need across the Greater Boston area. We will continue to address affordable housing in every way we can, but we are especially excited about the overall great potential of this project and send kudos to all stakeholders again.”
MassDevelopment has previously supported North Shore CDC projects in the Point neighborhood. In September 2021, the organization used a $80,500 award from the Brownfields Redevelopment Fund to advance the construction of an affordable senior housing facility and nonprofit health center; in March 2021, the organization used a $170,000 award from the Brownfields Redevelopment Fund to advance its affordable housing project dubbed “The Lighthouses”; in 2018, the organization used a $3.4 million tax-exempt bond to buy and renovate the Harbor-Lafayette Homes; in 2016 the organization used a $12.9 million tax-exempt bond to buy and renovate the Congress Street Residences; in 2014, the organization used a $9.8 million tax-exempt bond to buy and renovate the Salem Point Apartments; and in 2012 the organization used a $166,513 award from the Brownfields Redevelopment Fund to preserve 77 units of affordable housing.
Additionally, North Shore CDC has been awarded a total of $220,000 from MassDevelopment’s Commonwealth Places program to fund several placemaking projects in the Point. In 2023, the organization received a $50,000 grant for its Casa de Abuela project. In 2022, the organization received a $15,000 grant for its Las Muñecas Sin Rostro (Faceless Dolls) project. In 2021, the organization received a $10,000 grant to improve and drive foot traffic to four storefronts at 117 Lafayette St. In 2020, the organization received a $25,000 grant to assist small businesses in the neighborhood with COVID-19 reopening and recovery efforts; in 2019 the organization crowdfunded $42,150 and received a $40,000 matching grant from MassDevelopment to make streetscape improvements to Congress Street; in 2018, the organization crowdfunded $50,250 and received a $50,000 matching grant from MassDevelopment to fund public art and streetscape improvements at the Punto Urban Art Museum; and in 2017 the organization crowdfunded $40,000 and received a $30,000 matching grant from MassDevelopment to build the 2,000-square-foot Espacio Community Program Space.
“We are extremely grateful to MassDevelopment for its ongoing support of the work we do at North Shore CDC, especially with the renovation of New Point Family Housing and the creation of 18 affordable apartments in the Point,” said North Shore CDC Director of Portfolio Management Jason Pina. “These units are in need of substantial rehabilitation and energy efficiency improvements for new families that will call these apartments home.”
Based in Salem, North Shore CDC is a regional community development corporation whose mission is to invest in neighborhoods to create thriving communities. In addition to Salem, the organization has made affordable housing investments in Beverly, Gloucester, and Manchester-by-the-Sea, with additional programs serving people throughout the North Shore region.
MassDevelopment, the state’s development finance agency and land bank, works with businesses, nonprofits, banks, and communities to stimulate economic growth across the Commonwealth. During FY2022, MassDevelopment financed or managed 356 projects generating investment of more than $1.69 billion in the Massachusetts economy. These projects are estimated to create or support 11,080 jobs and build or preserve 1,778 housing units.
