Salem, MA – MassDevelopment has 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 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. The new 100% affordable building will include 62 one-bedroom units, 38 two-bedroom units, and 24 three-bedroom units. The units will be rented to households earning up to 60% of the area median income ($97,920 for a four-person household) with 25 units reserved for households earning up to 30% of the area median income ($48,960 for a four-person household). The universally designed building will be all electric, climate resilient, and Passive House certified.
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, purchased by Citizens and Eastern Bank, helped BC Leefort Terrace LLC achieve a lower cost of capital; Massachusetts Housing Partnership will assume the Citizens bond and provide 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.
“The lack of multifamily housing has been a driving factor in our housing crisis,” said Secretary of the Executive Office of Housing and Livable Communities Ed Augustus. “The redevelopment of Leefort Terrace will not only greatly expand the number of apartments, but will include units with more bedrooms and a greater range of affordability while helping to meet our climate goals with its Passive House certified design. The Healey-Driscoll Administration applauds Beacon Communities’ work and is proud to support innovative developments like this that expand affordable housing options for the residents of Salem and the region.”
“MassDevelopment is pleased to help longtime partner Beacon Communities breathe new life into the Leefort Terrace complex by building a more modern housing facility that can serve even more residents,” said MassDevelopment Deputy Director and Senior Executive Vice President Marcos Marrero. “Gateway Cities like Salem are made stronger and more vibrant when we invest in quality affordable housing such as this.”
“This project is a testament to the power of partnership and our shared commitment to improving lives,” said Dara Kovel, CEO of Beacon Communities. “Leefort Terrace will set a standard for energy efficiency and climate resilience while demonstrating the Commonwealth’s priority to transform public housing for future generations.”
Construction began in June and is expected to be completed in May 2026.
