MassDevelopment has issued a $3.448 million tax-exempt bond on behalf of Harbor Lafayette Homes Limited Partnership in Salem.

The partnership will use bond proceeds to buy and renovate two residential facilities in Salem’s Point neighborhood at 15-17 Harbor St. and 104-106 Lafayette St. The North Shore Community Development Coalition (NSCDC) is the project sponsor. Renovations to these buildings will create 27 single-room occupancy rental units. The renovations will also reduce commercial space in the building and create space for facilities that will serve as transitional housing for young, homeless individuals, along with various CDC programs. Renovations will also include replacing exterior stucco, the roof, windows and brick veneer; upgrading bathrooms and kitchens and installing new mechanical systems and new insulation. Beverly Bank purchased the bond.

“We are thrilled that Harbor-Lafayette Homes is under construction and will soon provide critically-needed affordable housing for a very vulnerable population – homeless youth,” Mickey Northcutt, NSCDC’s CEO, said in a statement.