MassDevelopment issues $21.4 million tax-exempt bond on behalf of WCG Homes LLC

Worcester, MA MassDevelopment has issued a $21.4 million tax-exempt bond on behalf of WCG Homes LLC, an affiliate of Worcester Common Ground (WCG), which will use proceeds to renovate and preserve 73 units of affordable housing located in 16 buildings in Worcester’s Piedmont neighborhood. The apartments range in affordability, with 26 units rented to households earning up to 60% of the area median income (AMI), 36 units rented to households earning up to 50% of AMI, and 11 units rented to households earning up to 30% of AMI. Improvements will include the replacement and upgrading of electrical, mechanical, and plumbing systems, renovation of kitchens and bathrooms, roof replacement, and the creation of four fully accessible units. Construction is underway and is expected to be completed in spring 2027. The tax-exempt bond, purchased by Eastern Bank, helped the borrower achieve a lower cost of capital; Massachusetts Housing Partnership will assume the bond and provide long-term fixed-rate financing for the project upon construction completion.

In addition to the tax-exempt bond, 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 $16.5 million in equity for the project.

“Our cities and towns are made stronger and more vibrant when residents have access to high-quality, affordable housing,” said economic development secretary Eric Paley, who serves as chair of MassDevelopment’s board of directors. “The Healey-Driscoll Administration is pleased to support Worcester Common Ground as it improves and preserves the affordability of homes in Worcester’s Piedmont neighborhood, efforts that will benefit more than 70 households across this community.”

 “The Healey-Driscoll Administration is dedicated to meeting the housing needs of communities across the state, and we are pleased to support the renovation and preservation of 73 affordable apartments in Worcester,” said Ed Augustus, secretary of housing and livable communities. 

 “I first want to thank the Healey Administration, Secretary Ed Augustus, MassDevelopment and Worcester Common Ground for this project,” said Worcester mayor Joseph Petty. “This $21 million will go a long way in providing affordable housing in Worcester. We have done a great job with market rate housing; this grant helps us with more affordable units in the city.”

“The City of Worcester is pleased to partner with Worcester Common Ground on this affordable housing preservation project,” said Worcester city manager Eric Batista. “The municipality’s affordable housing strategy not only prioritizes the production of new homes, but also the reinvestment and longevity of our existing affordable housing stock. We appreciate the support of the Healey-Driscoll Administration, MassDevelopment, and Eastern Bank and congratulate Worcester Common Ground on making this project a reality. 

“MassDevelopment is proud to help Worcester Common Ground preserve 73 units of housing in the city’s Piedmont neighborhood,” said MassDevelopment president and CEO Navjeet Bal. “The project underway will modernize and maintain these apartments as affordable, strengthening our housing stock and providing stability for residents of the community.”

“Safe and affordable housing is fundamental to economic security, and we are proud to provide financing to WCG Homes and our community development lending expertise to experienced partners such as MassDevelopment, Massachusetts Housing Partnership and the Massachusetts Executive Office of Housing and Livable Communities in their work to preserve affordable housing units across 16 buildings in Worcester and to achieve a lower cost of capital in doing so,” said Johanna Stone, a vice president of community development lending at Eastern Bank.

“This development is a great fit for us,” said Massachusetts housing partnership executive director Clark Ziegler. “The Piedmont neighborhood is a vibrant community that is culturally and historically rich. Preserving and renovating these units, making them affordable to individuals and families, will enhance the social and economic well-being of the community. I applaud WCG Homes for expanding housing opportunities in Central Massachusetts.”

“WCG is deeply grateful for the opportunity to partner with MassDevelopment and Eastern Bank in securing this crucial funding, together with our valued partners at EOHLC, the City of Worcester, MHP, Climate Ready Housing, Mass Lean, and the Department of Energy Resources,” said Worcester Common Ground executive director Yvette Dyson.