$38M Redevelops Public Housing in Worcester

January 27, 2026

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

WORCESTER, Mass. – MassDevelopment has issued a $38 million tax-exempt bond on behalf of Lakeside Phase 1 Four LLC, an affiliate of Tremont Development Partners and E3 Development, to finance the first phase of the redevelopment of the Worcester Housing Authority’s Lakeside Apartments community, located at 19 Garland St. and 34-46 Lakeside Ave in Worcester. The existing buildings, which were originally developed in 1949, will be replaced with two new buildings designed to Passive House standards. In total, the project includes 116 new affordable housing units (61 of which will replace existing, outdated units) in two separately financed transactions. Twenty-nine (29) units will be rented to households earning up to 60% of area median income (AMI) and 87 units will be rented to households earning up to 30% of AMI. The MassDevelopment tax-exempt bonds will finance 97 units in this first phase. Construction is underway and is expected to be completed in August 2027. The tax-exempt bond, purchased by Eastern Bank with participation from Webster Bank, helped the borrower achieve a lower cost of capital; Massachusetts Housing Partnership and Eastern Bank will assume the bond and provide long-term fixed-rate financing for the project upon construction completion.

In addition to the tax-exempt bond, MassDevelopment assisted the Massachusetts Executive Office of Housing and Livable Communities with the approval of federal low-income housing tax credits that will provide approximately $28.9 million in equity for the project.

“When Massachusetts residents have access to housing that’s affordable, our entire economy benefits,” said Economic Development Secretary Eric Paley, who serves as chair of MassDevelopment’s Board of Directors. “This project will both replace existing affordable apartments and add new units, creating opportunity for households in Worcester.”

“Worcester is showing what’s possible when we reimagine public housing,” said Ed Augustus, Secretary of the Executive Office of Housing and Livable Communities. “In October, I stood at Lakeside apartments with the Worcester Housing Authority and said public housing deserves the same imagination, design excellence and investment we expect everywhere else. This project delivers on that promise and continues Worcester’s leadership in creating sustainable public housing that reflects the dignity of the people who live here.”

“MassDevelopment is pleased to issue a tax-exempt bond that is helping bring modern, affordable housing online in Worcester Housing Authority’s Lakeside Apartments community,” said MassDevelopment President and CEO Navjeet Bal. “We applaud Tremont Development Partners and E3 Development for leading the redevelopment effort and are grateful for our partners at Eastern Bank, Webster Bank, and Massachusetts Housing Partnership who have made this financing possible.”

“This project stands as further proof in our belief in the vision of a sustainable city at the very heart of Massachusetts,” said Worcester Mayor Joseph Petty. “The City of Worcester thanks our partners and looks forward to many future projects such as this.”

“Lakeside Phase 1 is the kind of project the Worcester Affordable Housing Trust Fund was created to support,” said Worcester City Manager Eric D. Batista. “The City of Worcester’s $2 million ARPA investment from the Trust Fund helps ensure that more Worcester residents have access to safe, affordable housing and reinforces our broader efforts to address housing instability and displacement citywide.”

“The need for affordable housing has never been greater,” said Worcester Housing Authority CEO Alex Corrales. “This redevelopment will bring renewed life to one of Worcester’s most beautiful neighborhoods while helping ensure that families of all backgrounds can continue to live, grow, and build their futures right here.”

“Eastern Bank is proud to once again be working with Tremont Development Partners, E3 Development and our community partners to bring more high-quality, affordable homes to communities across Massachusetts, and to offer our expertise to help the borrower attain a lower cost of capital for the project financing,” said Angela Meehan, Senior Vice President and Relationship Manager of Community Development Lending of Eastern Bank. “Located on the site of the Worcester Housing Authority Lakeside Apartments community, this project will provide 97 affordable housing units for a range of income levels.”

"MHP is proud to support the replacement of aged rental housing with modern apartments and the creation of additional housing opportunity for low-income Worcester residents," said Massachusetts Housing Partnership Executive Director Clark Ziegler.

“Webster Bank is proud to collaborate with MassDevelopment, WHA, Tremont Development Partners, E3 Development, and the entire team working to transform Lakeside Apartments into modern, high-quality affordable housing for Worcester residents,” said Andrew Flink, Managing Director of Community Development Lending and Investment at Webster Bank. “This project reflects Webster Bank’s commitment to investing in the Commonwealth and advancing housing affordability across the communities we serve.”

The development team is a joint venture between E3 Development and Tremont Development Partners, two development firms with a shared commitment to providing high-quality housing with a focus on innovation, sustainability, and community impact.  

“We are thrilled to see this first phase of the Lakeside redevelopment underway,” said Eliza Datta of E3 Development and Rich Mazzocchi of Tremont Development Partners. “We are incredibly grateful to our funding partners who have made this project possible, and also to the Worcester Housing Authority and the residents of Lakeside Apartments for sharing our vision for a new community at Lakeside. We look forward welcoming residents back to their new homes in a couple of years.”

MassDevelopment has previously supported Tremont Development Partners, including issuing a $17 million tax-exempt bond in 2024 to help Tremont Development Partners build a four-story, 52-unit affordable rental housing facility with 52 surface-level parking spaces at 733 Broadway in Lowell’s Acre neighborhood.

MassDevelopment, the state’s development finance agency and land bank, delivers financing solutions, real estate expertise, and other assistance to strengthen and grow the Massachusetts economy. We partner with businesses, nonprofits, developers, banks, and municipalities, providing resources to help create jobs, build housing, and foster vibrant communities across the state. During FY2025, MassDevelopment financed or managed 409 projects generating investment of more than $4.65 billion in the Massachusetts economy. These projects are estimated to create or support 25,246 jobs and build or preserve 2,867 housing units.