Boston, MA. Nixon Peabody LLP is proud to have represented Beacon Communities in connection with the $94 million redevelopment of Leefort Terrace, originally a state public housing development for elderly and disabled households in Salem, Massachusetts.
Under terms of the deal, Beacon Communities signed a 99-year ground lease and will operate the redeveloped complex. Salem Housing Authority (SHA) is administering the Section 8 contract, and will retain ownership of the land.
The Leefort redevelopment includes the demolition of the existing eight buildings and the construction of a new, three- and four-story structure that will house 124 affordable rental units. Beacon has relocated the Leefort Terrace residents offsite to allow for construction; the residents have the right to return to the new building when the new building is complete. The development has been designed to be climate resilient, regenerative, and environmentally positive. The building will be all electric and built to achieve Passive House (PHIUS+) certification. It will also use on-site solar energy generation to work toward net zero.
“We’re proud to support Beacon Communities in this project,” said Christina Ricotta, counsel in Nixon Peabody’s Affordable Housing & Real Estate practice and lead attorney for the project. “The redevelopment of Leefort Terrace will make a positive impact for residents and the expansion of affordable seniors housing. We’re excited to see it get underway.”
Funding for the redevelopment and operations includes tax-exempt bonds from MassDevelopment; a construction loan from Citizens Bank and Eastern Bank; federal and state Low-Income Housing Tax Credits (LIHTC); loans from the Executive Office of Housing and Livable Communities (EOHLC), including High Leverage Asset Preservation Program (HILAPP), Public Housing Innovation Demonstration Program (PHIDP) funds, ARPA-1 Funds, and MA Affordable Housing Trust Fund; City of Salem Community Preservation Act funds; City of Salem American Rescue Plan Act (ARPA) and Salem-Peabody Coalition EPA Brownfields Revolving Loan Fund; and North Shore HOME Consortium funds.
Permanent debt will be provided by Massachusetts Housing Partnership (MHP) and Eastern Bank. Additional sources include Passive House rebates, 45L Incremental Tax Credits, and Solar Tax Credits.
The project was approved through a Chapter 40B zoning process and by the Salem Conservation Commission.
Amenities will include a fitness center, a community room, wellness office, computer stations, a Tenants’ Organization office, and property management office suite, with laundry rooms on each floor. The property will include 100 parking spots, as well as 86 spaces for bicycle parking, 2 EV-Charging Station, and 25 EV-capable parking spaces. The private residential outdoor courtyard will include a grilling patio, bocce court, and victory gardens. There will also be a 1.26-acre publicly accessible open space on the site.
In addition to Ricotta, the Nixon Peabody team included partner Julie Stande, counsel Karla Chaffee, associate Jaclyn Kelly, and paralegal Vienna Kim.
