CHICOPEE, Mass.— WinnCompanies has acquired Chicopee Village Townhomes, a 290-unit affordable housing community in western Massachusetts, and launched a $41.5 million rehabilitation designed to preserve long-term affordability and address years of deferred maintenance.
The acquisition and rehabilitation financing closed Aug. 13, securing the property’s affordability for the next 50 years. The project is expected to be completed in summer 2028.
Chicopee Village Townhomes was identified by the Massachusetts Executive Office of Housing and Livable Communities (EOHLC) in February 2025 as a preservation priority under Chapter 40T, a state law designed to prevent the loss of existing affordable housing. The property’s affordability restrictions were scheduled to expire in 2026.
EOHLC selected WinnDevelopment, the development arm of WinnCompanies, in April 2025 to make an offer for the property and lead its redevelopment.
“We’re grateful for the opportunity to protect and improve this critical source of affordable housing for the City of Chicopee and the Commonwealth,” said WinnDevelopment President Adam Stein. “Family housing like this is invaluable and rare, a fact that all of our public and private partners recognized immediately.”
Major Rehabilitation Planned
Originally built in 1947, Chicopee Village Townhomes consists of 62 two-story, townhouse-style buildings across 17.6 acres. The community primarily serves families with children and includes 196 two-bedroom and 73 three-bedroom apartments.
The rehabilitation will address major building and infrastructure needs throughout the property. Planned improvements include replacement of roofs, windows and siding, resurfacing of driveways and parking areas, and repairs to deteriorated sidewalks.
Heating systems will also be upgraded, with furnaces and water heaters replaced. New windows, enhanced insulation and air sealing are expected to improve energy efficiency and comfort while reducing utility costs for residents who pay their own utilities.
Individual apartments will receive improvements to kitchens and bathrooms. Depending on the unit, upgrades will include new refrigerators, ranges, ovens and dishwashers.
The community building, which houses the management office, community space and laundry facilities, will also be modernized. A new package and mail room will be added, while Connected Communities, an affiliated nonprofit of WinnCompanies, will use the space for supportive services and community events.
A new centrally located playground is also planned to serve the property’s large population of families with children.
Preserving Affordability and Preventing Displacement
Following the rehabilitation, 260 apartments will remain affordable to households earning up to 60% of Area Median Income. The project will also include 16 apartments supported by new Massachusetts Rental Voucher Program vouchers for households earning up to 30% of AMI.
Another 30 apartments will be converted to unrestricted units, allowing existing over-income residents to remain in their homes rather than facing economic displacement.
The project will also significantly improve accessibility. Fifteen apartments will be converted to fully accessible units, while six will be designed for residents with hearing or visual impairments. Currently, none of the apartments are accessible for people with physical, visual or auditory impairments.
Importantly, WinnCompanies said no households will be permanently displaced during the 22-month construction period. WinnResidential, the company’s property management arm, will work with HousingToHome of Dedham to coordinate temporary relocations on site as construction progresses.
“The Healey-Driscoll Administration is committed to making Massachusetts more affordable, and that means preserving the affordable homes we already have while continuing to create more,” said EOHLC Secretary Juana Matias. “The rehabilitation of Chicopee Village Townhomes will preserve 290 affordable homes, improve the quality of life for residents, and help ensure families can continue to live and thrive in the community they call home.”
Public-Private Financing Partnership
The acquisition and rehabilitation are being financed through a combination of public and private sources, including a twinned 4% and 9% Low-Income Housing Tax Credit transaction, with tax credits allocated by EOHLC.
Massachusetts Housing Partnership provided a permanent mortgage, while MassHousing issued tax-exempt bonds to help finance the acquisition.
Rockland Trust provided approximately $36 million in construction financing and invested $9.8 million in the project. U.S. Bancorp Impact Finance is providing construction financing and investing tax credit equity.
“MHP is proud to partner with WinnDevelopment to preserve Chicopee Village for the families that live there today and those who will find a home here in the future,” said MHP Executive Director Rachel Heller. “Updates to these homes will increase accessibility and energy efficiency while improving outdoor spaces with a new playground and repairs to sidewalks.”
MassHousing CEO Chrystal Kornegay said the agency was pleased to participate in the effort to preserve affordability at the property, which otherwise faced the possibility of converting to market-rate housing.
Location Supports Families
Chicopee Village is located near major interstate highways and public transportation. A public school is approximately a half-mile from the property, while two public parks are within one mile. Major employers are within walking distance, and the Boys and Girls Club of Chicopee is located next door.
Chicopee Mayor John Vieau said the city supports the redevelopment and WinnDevelopment’s long-term stewardship of the property.
State Sen. Adam Gomez and State Rep. Shirley Arriaga also praised the project, emphasizing its role in preventing displacement and preserving housing for local families.
“Protecting affordable housing means protecting families, and that’s exactly what this investment in Chicopee Village Townhomes will do,” Arriaga said. “At a time when Massachusetts faces a housing affordability crisis, preserving the affordable housing we already have is just as important as building more.”
WinnDevelopment Project Director Derek Hansen is overseeing the redevelopment. Keith Construction of Canton is serving as general contractor, with The Architectural Team of Chelsea as architect and VHB of Watertown as civil engineer. Robinson+Cole of Boston served as transaction counsel.
