Chelsea, MA – MassDevelopment has issued a $24.5 million tax-exempt bond on behalf of TND 170 Cottage LLC, an affiliate of The Neighborhood Developers, Inc. (TND), which will use proceeds to buy a parcel at 170 Cottage Street in Chelsea where it will build a new 66-unit affordable rental housing facility.
The approximately 76,000sf building will include 11 three-bedroom units, 43 two-bedroom units, and 12 one-bedroom units, as well as a community room, 72 below-ground parking spaces, bicycle storage, and more than 15,000sf of open space. The units will be rented to households earning up to 60% of the area median income ($89,050 for a four-person household) with 10 units reserved for households earning up to 50% of the area median income ($74,200 for a four-person household) and 18 units reserved for households earning up to 30% of the area median income ($44,520 for a four-person household).
The property is located adjacent to the Chelsea Greenway and one block from the Eastern Avenue stop on the MBTA Silver Line. Project sponsor TND created a for-profit affiliate, TND 170 Cottage LLC, for the purposes of facilitating this tax-exempt financing. Broadway Securities Corporation, a subsidiary of Eastern Bank, purchased the bond, which helped TND 170 Cottage LLC achieve a lower cost of capital.
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 $19.7 million in equity for the project.
“We are thrilled with MassDevelopment’s financial support of this critical affordable housing project led by The Neighborhood Developers,” said Chelsea City Manager Fidel A. Maltez. “This pivotal investment marks a significant step towards realizing our vision for expanded affordable housing in Chelsea. Affordable housing is a cornerstone priority for our city, and partnerships at the local, state, and federal levels are paramount to turning this vision into reality. Through collaborative efforts, we are not only addressing critical housing needs but also fostering vibrant, inclusive communities where all residents can thrive. This project underscores our commitment to equitable development and lays a foundation for continued prosperity in Chelsea.”
