Image courtesy of Davis Square Architects

A Chelsea affordable housing development is securing site control thanks to Eastern Bank and MassDevelopment.

The latter issued a $24.5 million tax-exempt bond on behalf of The Neighborhood Developers Inc., which will use the proceeds to buy an empty lot at 170 Cottage St. in Chelsea for a planned 66-apartment, 76,000-square-foot project. Davis Square Architects designed the development.

Eastern Bank bought the bond via a subsidiary, Broadway Securities Corp., helping TND achieve a lower cost of capital, MassDevelopment said.

The 11 three-bedroom units, 43 two-bedroom units, and 12 one-bedroom units will be leased out to families earning 60 percent of area median income ($89,050 for a four-person household), with 28 units set aside for renters making a mix of 50 percent and 30 percent area median income.

The development is a block from the MBTA Silver Line’s Eastern Avenue station, but will have 72 parking spaces in an underground garage.

“Eastern Bank is pleased to be working with The Neighborhood Developers and MassDevelopment to bring 66 affordable, energy efficient homes to Chelsea,” Eastern Bank Vice President of Community Development Lending Angela Meehan said in a statement. “Not only will the project provide permanently affordable housing to the area, it will also connect residents with additional resources to help them thrive, such as on-site open space, the Chelsea Greenway, and access to public transportation.”

TND owns 649 affordable housing units in Chelsea, Everett, and Revere.

“We extend our heartfelt gratitude to MassDevelopment for its unwavering support of and partnership in our mission to provide affordable housing in our gateway communities,” TND Executive Director Rafael Mares said in a asttement. “The issuance of the $24.5 million tax-exempt bond marks a significant milestone for 170 Cottage. With this crucial investment, we are empowered to realize our vision of constructing 66 affordable rental homes next to the Chelsea Greenway with welcoming open space that will showcase public art and provide access to the multi-modal pedestrian and bike path. This truly transit-oriented development will be only a block away from the Eastern Ave Silver Line Station. Together, we are not just building structures, we are building homes and opportunities for individuals and families.”

Eastern Bank, MassDevelopment Fund Chelsea Housing

by James Sanna time to read: 1 min