**$38M Tax-Exempt Bond Finances First Phase of Worcester’s Lakeside Apartments Redevelopment**
MassDevelopment has issued a $38 million tax-exempt bond on behalf of Lakeside Phase 1 Four LLC, an affiliate of Tremont Development Partners and E3 Development. The funds will be used to support the first phase of the redevelopment of the Worcester Housing Authority’s Lakeside Apartments community located at 19 Garland Street and 34–46 Lakeside Avenue in Worcester, Massachusetts.
Originally developed in 1949, the existing buildings at the Lakeside Apartments site will be replaced with two newly constructed residential buildings that meet Passive House energy efficiency standards.
The tax-exempt bond was purchased by Eastern Bank, with Webster Bank participating in the financing. The structure enabled the borrower to secure a lower cost of capital. Upon completion of construction, Massachusetts Housing Partnership and Eastern Bank will assume the bond and provide long-term, fixed-rate financing for the project.
In addition to the bond financing, MassDevelopment worked with the Massachusetts Executive Office of Housing and Livable Communities to secure federal Low-Income Housing Tax Credits (LIHTC) for the development. These tax credits will contribute approximately $28.9 million in equity toward the project’s funding.
This investment marks a significant step forward in revitalizing affordable housing in Worcester, enhancing both the quality and sustainability of community housing assets.
