South Boston – MassDevelopment recently issued a $6.2 million tax-exempt bond on behalf of South Boston Veterans Housing LLC, a joint venture between Caritas Communities and the South Boston Neighborhood Development Corporation. The organizations will use bond proceeds to build Patriot Homes, 24 new rental apartment units in South Boston for low-income veterans. Radius Bank purchased the bond. In addition to the tax-exempt bond, MassDevelopment assisted the Department of Housing and Community Development with the approval of federal low-income housing tax credits, which provided approximately $3.9 million in equity for the project. MassDevelopment also provided $414,000 from the Brownfields Redevelopment Fund to assess and clean up contamination at the site.
“I am very excited that the Patriot Homes project in South Boston is moving forward,” said Department of Veterans’ Services Secretary Francisco Ureña. “Massachusetts is committed to ending veterans’ homelessness and affordable options like this are essential to meeting our goals. I applaud MassDevelopment, DHCD and Caritas Communities for Patriot Homes and I look forward to working with them as this project becomes reality.”
“Patriot Homes will provide essential affordable housing opportunities for South Boston’s veteran community,” said Marty Jones, MassDevelopment President and CEO. “MassDevelopment is proud to support Caritas Communities and the South Boston Neighborhood Development Corporation in their joint effort to supply our veterans with the homes they need and deserve.”
The development of the Patriot Homes is a two-phase project. During the first phase, South Boston Veterans Housing LLC will acquire the former D Street police station in South Boston and convert the building into 12 studio apartments. Renovations to the station will include office space for the South Boston Neighborhood Development Corporation, a community group that seeks to improve the quality of life in the neighborhood by preserving and creating affordable housing. The second phase of the project will include construction of a building that will contain 12 apartment units – two one-bedroom units and 10 two-bedroom units. All 24 units of the Patriot Homes will be reserved for households earning no more than 50 percent of area median income.
Mark Winkeller, Executive Director of Caritas Communities, thanked MassDevelopment for its help in providing a key portion of this complex financial transaction. “MassDevelopment continues to be a strong partner in financing our affordable housing efforts. This is our third bond issue and, once again, MassDevelopment did an excellent job. The Agency is a strong and skilled partner.”
“The South Boston community has a long history of military service,” said Donna Brown, Executive Director of the South Boston Neighborhood Development Corporation. “South Boston NDC is thrilled to be starting construction on this important affordable housing for veterans, and we are grateful for the support of the City of Boston and many funders, including MassDevelopment, who have made this project possible.”
MassDevelopment, the state’s finance and development agency, works with businesses, nonprofits, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2014, MassDevelopment financed or managed 314 projects generating investment of more than $2.9 billion in the Massachusetts economy. These projects are projected to create more than 6,300 jobs and build or rehabilitate more than 1,600 residential units.