MassDevelopment has issued a $29 million tax-exempt bond to support a new seniors housing development in Lynn. The bond was issued on behalf of 2Life Solimine 4% LLC, an affiliate of 2Life Communities Inc., which is planning 150 new units of housing for older adults at 500 Lynnfield St. The project is designed as a dedicated seniors community and aims to address growing demand for age-restricted housing in the area.
The tax-exempt bond will specifically fund construction of 105 of the 150 planned units, with the remaining units supported by other sources of capital. Citizens Bank purchased the bond, providing the long-term debt capital needed to move the development forward. The structure underscores the continued use of tax-exempt financing tools to help make income-restricted seniors housing financially feasible.
In addition to the bond financing, the project is benefiting from federal low-income housing tax credits. MassDevelopment assisted the Massachusetts Executive Office of Housing and Livable Communities in securing approval for these credits, which are expected to generate approximately $20.2 million in equity for the development. The combination of tax-exempt debt and tax credit equity forms a substantial portion of the project’s capital stack.
State officials framed the project within broader demographic and workforce trends. Economic Development Secretary Eric Paley, who chairs MassDevelopment’s Board, noted that as more members of the workforce move into retirement, demand is rising for seniors housing that can provide appropriate care and opportunities for engagement. He emphasized that 2Life Communities is working to create a new residential setting for older adults that supports both care needs and community life.
For 2Life Communities, the Lynn development represents an expansion of its mission-driven portfolio focused on older residents. By securing tax-exempt bond financing and low-income housing tax credits, the organization is able to advance a sizable seniors housing project that may not have been possible on a purely market-rate basis. The public and quasi-public support mechanisms involved reflect a policy focus on expanding housing options for lower-income and retiring residents.
The financing also highlights the role of banks such as Citizens Bank in purchasing tax-exempt bonds tied to affordable and seniors housing. With MassDevelopment acting as issuer and coordinating with state housing officials, the Lynn project demonstrates how multiple public, nonprofit, and private stakeholders are combining resources to deliver new seniors units. Once completed, the 150-unit community at 500 Lynnfield St. is expected to provide additional capacity for older adults seeking housing and services in Lynn.
