BOSTON — A vacant former convent in South Boston is being transformed into 36 affordable senior apartments with the help of $7.76 million in tax-exempt financing from MassDevelopment and Eastern Bank.
MassDevelopment issued the tax-exempt bond on behalf of 207 E Street LLC, an affiliate of South Boston Neighborhood Development Corporation, to finance the redevelopment of the former St. Augustine’s convent at 207 E St. Eastern Bank purchased the bond, helping the nonprofit organization secure a lower cost of capital for the project.
The redevelopment, known as McDevitt Senior Homes, will convert the historic building into 36 one-bedroom apartments for seniors. Construction is underway, with completion expected in early 2028.
In addition to the tax-exempt bond, MassDevelopment assisted the Massachusetts Executive Office of Housing and Livable Communities with the approval of federal tax credits expected to provide approximately $11.7 million in equity for the project.
“Housing is essential to strong communities and a strong economy,” said Economic Development Secretary Eric Paley, chair of MassDevelopment’s Board of Directors. “By transforming the former St. Augustine’s convent into senior housing, we are carrying this historic property’s legacy forward while helping older adults remain rooted in the South Boston neighborhood they call home.”
Housing and Livable Communities Secretary Juana Matias said the project will create new housing while preserving an important part of the neighborhood.
“By transforming a long-vacant convent into 36 homes for older adults, this project will create new housing opportunities while preserving an important part of the South Boston neighborhood,” Matias said. She added that the project is part of the Healey-Driscoll administration’s effort to build more housing and lower costs.
From convent to senior housing
The former St. Augustine’s convent opened in 1895. In 2008, the Paraclete Foundation acquired the property and used it for educational and after-school programs for local youth.
Those programs ended during the COVID-19 pandemic.
In 2022, South Boston Neighborhood Development Corporation entered into a below-market purchase agreement with the Paraclete Foundation to acquire the building. Proceeds from the sale are being used by the Paraclete Foundation to fund scholarships for local youth.
The completed McDevitt Senior Homes will feature 36 one-bedroom units. South Boston Neighborhood House, a local human services agency, will provide supportive services for residents.
Donna Brown, executive director of South Boston Neighborhood Development Corporation, said the project is intended to help older residents remain in South Boston as housing costs rise.
“McDevitt Senior Homes represents more than a new building — it’s a commitment to our seniors and to preserving the fabric of South Boston,” Brown said. “As housing costs rise, too many older adults face the risk of displacement. This development ensures that seniors who helped build this neighborhood can remain here with stability, dignity, and community.”
Brown credited MassDevelopment and the project’s public and private funding partners with helping make the redevelopment possible.
Eastern Bank provides additional support
Eastern Bank’s involvement extends beyond its purchase of the tax-exempt bond. The bank is also providing a construction bridge loan and making an equity investment in the project.
“Every older adult deserves a safe, stable and affordable place to call home, and community development lending expertise is one way we at Eastern help to make that possible,” said Yongmei Chen, senior vice president and commercial group director of community development lending at Eastern Bank.
The Eastern Bank Foundation is also supporting the project with a philanthropic grant.
“We are proud to support the renovation of the vacant former St. Augustine’s convent through a philanthropic grant so more low-income seniors can access safe, affordable housing in the community they call home,” said Turahn Dorsey, president and CEO of the Eastern Bank Foundation.
MassDevelopment President and CEO Navjeet Bal said the redevelopment continues South Boston Neighborhood Development Corporation’s work to create and preserve affordable housing in the community.
The project marks another collaboration between MassDevelopment and the nonprofit. In 2015, MassDevelopment supported South Boston Neighborhood Development Corporation with a $6.2 million tax-exempt bond and a $414,000 Brownfields Redevelopment Fund award to develop 24 units of affordable housing for low-income veterans in South Boston in partnership with Caritas Communities.
South Boston Neighborhood Development Corporation has been creating and preserving affordable housing for South Boston residents since 1983. The state-certified community development corporation also provides quality-of-life programming and economic development initiatives intended to increase community engagement.
State financing supports housing development
The McDevitt Senior Homes project is part of MassDevelopment’s broader financing and development work across Massachusetts.
The agency provides financing, real estate services and technical assistance to businesses, nonprofits, developers, lenders and municipalities.
During fiscal year 2026, MassDevelopment financed or managed 538 projects, generating more than $6.52 billion in investment, supporting an estimated 42,113 jobs and helping create or preserve 4,355 housing units.
For South Boston, the conversion of the former St. Augustine’s convent will preserve the historic property’s use in the neighborhood while creating 36 new affordable homes for older adults. With construction underway, McDevitt Senior Homes is expected to be completed in early 2028.
