🔒MassDevelopment, feds provide $38M to preserve 73 affordable Worcester apartments

MassDevelopment has provided an affiliate of Worcester Common Ground with a tax-exempt bond of $21.4 million to preserve affordable housing in Worcester’s Piedmont neighborhood, with federal tax credits providing another $16.5 million in equity. The combined $38 million in financing will be used to renovate and preserve 73 units of affordable housing located in 16 buildings, according to a press release issued by MassDevelopment on Wednesday. Renovation work is underway and expected to be completed in the spring of 2027. “While the creation of new affordable housing is at an all-time high, the preservation of existing homes, including four buildings undergoing energy retrofits and solar installation, is equally vital to ensuring long-term stability for Worcester residents and strengthening our housing portfolio for the future,” Yvette Dyson, Worcester Common Ground executive director, said in the press release. The tax-exempt bond was provided by Boston–based Eastern Bank. Public nonprofit organization Massachusetts Housing Partnership will assume the bond and provide long-term fixed-rate financing for the project after the completion of the renovation work. Quasi-public state agency MassDevelopment worked with the Massachusetts Executive Office of Housing and Livable Communities to gain approval for the $16.5 million in federal low-income housing tax credits. Founded in 1988, Worcester Common Ground is a community development corporation focused on the Piedmont neighborhood, located west of Worcester’s Downtown. The organization renovates existing housing stock and acquires vacant parcels to build more housing in order to increase neighborhood stability, according to WCG’s website. Units rented to households earning up to 60% of the area median income make up 26 of the units which are part of this effort, with 36 units being rented to households earning up to 50% of area median incomeI, and 11 units rented to households earning up to 30% of area median income. About 93% of residents in the Piedmont neighborhood are renters, according to neighborhood and college data site Niche.com. “The City of Worcester is pleased to partner with Worcester Common Ground on this affordable housing preservation project,” Worcester City Manager Eric Batista said in the press release. “The municipality’s affordable housing strategy not only prioritizes the production of new homes, but also the reinvestment and longevity of our existing affordable housing stock.” Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.