BOSTON – MassDevelopment has issued a $12,040,000 tax-exempt bond on behalf of Carol Avenue Apartments Owner LLC, an affiliate of Allston Brighton Community Development Corporation (CDC), which is using proceeds to buy, renovate, and preserve the Carol Avenue Apartments located at 6 and 10-12 Carol Ave. in Boston’s Brighton neighborhood.
The multifamily rental housing complex, built in 1910, features 29 affordable units and four market-rate units across three buildings. This includes nine one-bedroom apartments, 15 two-bedroom apartments, five three-bedroom units, and four four-bedroom units. Construction began September 5, 2023 and is expected to be complete November 5, 2024. Project sponsor Allston Brighton CDC created a for-profit affiliate, Carol Avenue Apartments Owner LLC, for the purposes of facilitating this tax-exempt financing. Eastern Bank purchased the bond, which helped Carol Avenue Apartments Owner LLC achieve a lower cost of capital.
Renovations will include new sprinklers and fire alarms, water services rainwater retention systems, and a separate domestic hot water system; electrical systems upgrades; exterior and interior common area repairs; masonry restoration; window, roof, and boiler replacements; and improvements to make the property 100% accessibility compliant. Following the renovations, the property will be all electric (100% fossil fuel free), include rooftop solar photovoltaic panels, and achieve a 55% reduction in site energy usage.
“Allston Brighton CDC is a local leader in creating and preserving affordable housing here in this corner of the city,” said MassDevelopment President and CEO Dan Rivera. “It’s imperative that we upgrade and preserve our existing affordable housing stock and extend the lifespan of buildings like the Carol Avenue Apartments in Brighton for present and future generations.”
In addition to the tax-exempt bonds, 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 $8.2 million in equity for the project.
“Eastern Bank is proud to support the Allston Brighton Community Development Corporation in preserving this unique source of affordable family housing within the Brighton neighborhood,” said Eastern Bank Vice President and Relationship Manager of Community Development Angela Meehan. “In addition to providing three- and four-bedroom affordable units, the project supports energy efficient homes through significant efficiency upgrades that will deeply reduce the energy usage of the three buildings.”
Since 1980, Allston Brighton Community Development Corporation has led initiatives that create affordable homes, foster community leadership, and enhance and protect open spaces. Allston Brighton CDC currently owns, or is a managing member of, over 500 units of affordable rental housing.
MassDevelopment has previously supported Allston Brighton CDC. In 2013, the organization used a $5.3 million tax-exempt bond to renovate Brighton-Allston Apartments, a 60-unit affordable rental housing facility on two sites in Allston and Brighton.
“We are grateful for MassDevelopment’s support on this critical project to restore and preserve this affordable housing resource for generations to come,” said Allston Brighton CDC Director of Real Estate Development Caitlin Robillard. “The completion of the process of securing the incredible array of public and private resources needed to make this important project possible is a credit to the persistence and dedication of the entire development team.”
MassDevelopment, the state’s development finance agency and land bank, works with businesses, nonprofits, banks, and communities to stimulate economic growth across the Commonwealth. During FY2023, MassDevelopment financed or managed 545 projects generating investment of more than $2 billion in the Massachusetts economy. These projects are estimated to create or support 10,522 jobs and build or preserve 1,583 housing units.