Codman Academy is adding an elementary and middle school near its charter public high school in Dorchester with proceeds from MassDevelopment bonds.

MassDevelopment has issued a $4 million tax-exempt bond and a $3.9 million Qualified Zone Academy Bond (QZABs) on behalf of Codman Academy Foundation Inc. to purchase a commercial building in Dorchester and convert it into classroom space for the new schools. QZABs are financial instruments that help eligible schools raise funds at lower costs for renovations, repairs, technology and equipment investments, curriculum development and teacher training. The expansion is projected to create 25 jobs.

"MassDevelopment’s critical assistance with renovation of the historic Lithgow Building in Codman Square means that families, for the first time, have a K1-12 charter option in the city of Boston," Meg Campbell, executive director of Codman Academy, said in a statement. "Last year more than 1,500 families applied for our open lottery for 130 seats, so we know the demand is real. This iconic building in the heart of Codman Square, opposite Codman Square Health Center and the new Walczak wing that houses our high school creates a true campus in an economically challenged community."

Codman Academy received its charter in 2001, and opened with a class of 32 ninth graders. Today, it has has nearly 145 students in grades 9 through 12, most of whom reside in Dorchester, Roxbury, and Mattapan. In 2013, Codman Academy was named one of the top 10 districts in the state for MCAS growth.

"New facilities will allow Codman Academy to serve more Dorchester, Roxbury and Mattapan students," MassDevelopment President and CEO Marty Jones said in a statement. "MassDevelopment is pleased to help the academy leverage this combination of low-cost financing to facilitate its expansion and help boost the commonwealth’s knowledge-based economy."