Image courtesy of MassDevelopment

A $10.5 million tax-exempt bond issued by MassDevelopment and purchased by Eastern Bank will help an affiliate of the YMCA of the North Shore renovate and expand a downtown Beverly roominghouse for additional housing.

Cabot Housing LLC will acquire the century-old 245 Cabot St. and add a fourth floor to expand the property from 45 to 67 studio apartments. The existing units, previously operated as single-room occupancy, will be converted into private studio apartments.

Nine units will be rented to households earning no more than 60 percent of area median income (AMI), or $56,400. Another 38 units will be rented to households earning a maximum 50 percent of AMI ($47,000) and 20 units will be rented to households earning no more than 30 percent of AMI ($28,200). Ten of the units will be rented to formerly homeless individuals.

Originally built in 1911, 245 Cabot St. was updated in 1999 as a historic renovation by the Massachusetts Department of Housing and Community Development.

Federal low-income housing tax credits will provide approximately $5.3 million in equity for the project.

“Downtown neighborhoods are at their most vibrant when they are accessible and inclusive, and that requires housing that’s affordable at all income levels,” MassDevelopment President and CEO Dan Rivera said in a statement.