WORCESTER, MASS. — MassDevelopment, Massachusetts’ development finance agency and land bank, has issued a $38 million tax-exempt bond to Tremont Development Partners to finance the first phase of the redevelopment of the Worcester Housing Authority’s Lakeside Apartments community in Worcester. The site’s existing buildings that were originally built in 1949 will be demolished and replaced with two new buildings containing 116 units. Twenty-nine units will be reserved for households earning up to 60 percent of area median income (AMI) and 87 units will be earmarked for households earning no more than 30 percent of AMI. Construction is underway and is expected to be completed in August 2027.
The tax-exempt bond was purchased by Eastern Bank with participation from Webster Bank. Massachusetts Housing Partnership and Eastern Bank will assume the bond and provide long-term fixed-rate financing for the project upon construction completion. In addition to the tax-exempt bond, MassDevelopment assisted the Massachusetts Executive Office of Housing and Livable Communities with the approval of federal Low-Income Housing Tax Credits that will provide approximately $28.9 million in equity for the project.