JV Lands $153M for Affordable Project in Boston
Nixon Peabody represented the partnership.
A partnership between the Planning Office for Urban Affairs and St. Francis House has secured financing for the development of a 19-story, affordable community encompassing 126 units in Boston. Nixon Peabody represented the duo in securing the funds—$153 million in total.
Financing included $63 million in 4 percent and 9 percent LIHTC, as well as roughly $10 million in Massachusetts State LIHTC, as well as construction notes totaling more than $80 million.
Bank of America, The Life Initiative, the City of Boston’s Mayor’s Office of Housing and Neighborhood Housing Trust, Community Economic Development Assistance Corp. and MassHousing Finance Agency, as well as the Executive Office of Housing and Livable Communities, provided the funds.
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Construction began last month and, according to Boston.com, first residents are expected to move in starting September 2026.
Out of the total, 70 units will cater to residents earning at or below 30 percent Area Median Income and benefit from the Massachusetts Rental and Section 8 vouchers. The remainder 56 units will be reserved for households earning between 50 and 80 percent AMI.
Moreover, St. Francis House will provide case management and assistance services to the residents inhabiting the permanent supportive housing units. The services may include workforce development and health-oriented assistance.
Floorplans call for studio, one- and two-bedroom layouts. The community will have a management office, around-the-clock security, resident lounges and a gym. Additionally, the project was designed to meet Boston’s Green Buildings requirements, which dictates that all large-scale projects must achieve LEED certification.
The transit-oriented development is in downtown Boston, at 41 LaGrange St. The community is taking shape next to Fortis Property Group’s The Parker, a 168-unit luxury condominium asset.
The Nixon Peabody team included Counsels Christina Ricotta and Karla Chaffee, as well as Partners Dara Newman Histed and Nicholas Anderson, among others.
Creating affordable housing in Boston
The Roman Catholic Archdiocese of Boston established the Planning Office for Urban Affairs in 1969. Since then, POUA has developed more than 3,000 units and its investments totaled more than $650 million throughout metro Boston.
POUA also works to preserve and redevelop affordable assets. Last year, it partnered with Fenway Community Development Corp. to acquire Our Lady’s Guild House, a 140-unit affordable community in Boston. Plans called for an exhaustive rehabilitation and renovation process.
Boston affordable development on par with previous years
As of November, metro Boston’s supply pipeline included more than 2,100 units under construction across 23 fully affordable communities, according to Yardi Matrix data. The figure made up just 12 percent of the market’s total multifamily pipeline.
Developers brought online more than 670 affordable units in metro Boston year-to-date through November, the same source shows. This year’s affordable deliveries were on par with those of the previous two years.
Besides a limited stock to choose from, potential residents are faced with another hurdle. According to a recent Yardi Matrix bulletin, the gap between advertised market-rate rents and their affordable counterparts is tremendous in some of the nation’s largest metros. For instance, in Boston, the gap clocked in at $982 as of October.
