MassDevelopment has issued $3.7 million in tax-exempt bonds on behalf of Rehabilitative Resources Inc., a nonprofit organization that operates 43 residential homes statewide for people with disabilities.

The organization plans to use bond proceeds to renovate and convert existing space in Sturbridge into a day habilitation facility and transportation office. The bonds, which were purchased by TD Bank in Worcester, will also refinance conventional bank debt that RRI used to finance its properties. The project is expected to create a minimum of four new jobs.

"RRI has come a long way in the last three decades, growing from two community-based homes helping people with disabilities move from the Belchertown State School," said MassDevelopment President & CEO Robert L. Culver. "This low-cost financing will help RRI continue to expand its facilities and help more people who need its services."

Founded in 1975, RRI now owns or leases 43 residential homes and employs 475 people in its administrative, direct care, day habilitation and transportation departments. These departments allow the organization to teach independent living skills to people with developmental disabilities.

RRI also has 79 vehicles that transport 190 people to and from work.

"Thanks to MassDevelopment and TD Bank, RRI will be able to support more people with developmental disabilities while reducing costs," said Bonnie Keefe-Layden, RRI chief executive officer. "This becomes even more important in down economies, when people with disabilities are disproportionately affected by loss of services, and nonprofits are squeezed to the point where they have to cut staff or reduce services. We have always been conscientious stewards of public and private financing, and increasing the quality of services, creating jobs and maximizing our borrowing power by using bonds issued through MassDevelopment illustrates this perfectly."