MassDevelopment has issued a $6.2 million tax-exempt bond on behalf of South Boston Veterans Housing LLC, a joint venture between Caritas Communities and the South Boston Neighborhood Development Corp. (South Boston NDC).
The organizations will use proceeds from the bond, purchased by Radius Bank, to build Patriot Homes, 24 new rental apartment units in South Boston for low-income veterans.
“The South Boston community has a long history of military service,” Donna Brown, executive director of the South Boston NDC, said in a statement. “South Boston NDC is thrilled to be starting construction on this important affordable housing for veterans, and we are grateful for the support of the city of Boston and many funders, including MassDevelopment, who have made this project possible.”
Patriot Homes is a two-phase project. During the first phase, South Boston Veterans Housing LLC will acquire the former D Street police station in South Boston and convert the building into 12 studio apartments. Renovations to the station will include office space for the South Boston Neighborhood Development Corp., a community group that seeks to preserve and create affordable housing. The second phase of the project includes construction of a building that will contain 12 apartment units – two one-bedroom units and 10 two-bedroom units. All 24 units of the Patriot Homes will be reserved for households earning no more than 50 percent of area median income.
MassDevelopment assisted the Department of Housing and Community Development with the approval of federal low-income housing tax credits, which provided approximately $3.9 million in equity for the project. MassDevelopment also provided $414,000 from the Brownfields Redevelopment Fund to assess and clean up contamination at the site.
“Patriot Homes will provide essential affordable housing opportunities for South Boston’s veteran community,” MassDevelopment President and CEO Marty Jones said in a statement. “MassDevelopment is proud to support Caritas Communities and the South Boston Neighborhood Development Corp. in their joint effort to supply our veterans with the homes they need and deserve.”