$45M Expands Affordable Housing in Salem

MassDevelopment issued $45 million in tax-exempt bonds on behalf of BC Leefort Terrace LLC, an affiliate of Beacon Communities, which is using proceeds to redevelop the outdated Leefort Terrace housing development in Salem built in 1958 containing 50 garden-style one-bedroom units across eight buildings. The company secured a 99-year ground lease from Salem Housing Authority for the property, demolished the existing buildings, and is building a new three- and four-story, 124-unit affordable rental housing facility in their place. Beacon Communities created a for-profit affiliate, BC Leefort Terrace LLC, for the purpose of facilitating this tax-exempt bond financing. The tax-exempt bonds were purchased by Citizens and Eastern Bank, with Massachusetts Housing Partnership assuming the Citizens bond and providing long-term fixed-rate financing for the project upon construction completion. In addition to the tax-exempt bonds, 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 $29.2 million in equity for the project.