Mar 3, 2026

MassHousing and TD Bank Close $40M+ Financing for 43-Unit Affordable Project at 24 Webster Ave in Somerville’s Union Square

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Key Points

43 deeply affordable rental units planned at 24 Webster Ave in Union Square
$17.8M from MassHousing plus $22.8M construction loan from TD Bank
Project to meet Passive House standards in one of Massachusetts’ priciest markets

43 Affordable Units Coming to 24 Webster Avenue

MassHousing and Just A Start have closed financing for a six-story affordable housing development in Union Square that will replace a vacant commercial building. The project will deliver 43 new deeply affordable rental homes in one of the most expensive neighborhoods in the Commonwealth.

What the Capital Stack Means for Affordable Housing Delivery

MassHousing is providing $17.8 million through its Conduit Loan Program. TD Bank is supplying $22.8 million in construction financing. Additional funding includes $21.2 million from federal and state Low Income Housing Tax Credits allocated by the Massachusetts Executive Office of Housing and Livable Communities, plus $3.2 million in direct support from EOHLC. This layered capital stack underscores how public-private partnerships remain essential to the feasibility of affordable housing in high-cost submarkets like Somerville.

What Passive House Standards Mean for Operating Costs

The building will be constructed to Passive House standards, emphasizing energy efficiency and lower long-term operating expenses. For affordable housing operators, lower utility costs mean stronger long-term asset sustainability and better tenant affordability.

What This Means for Somerville’s Housing Pipeline

Union Square has rapidly evolved with transit access and mixed-use density, driving up rents and land values. Delivering 43 deeply affordable units in this submarket reflects continued state-level commitment to preserving affordability near job centers and transit corridors. For developers and lenders, the deal reinforces that affordable housing in Massachusetts remains financeable when layered with tax credits, agency support, and institutional construction debt. In high-barrier Boston-area markets, public capital continues to be the key unlock for new supply.

#Boston #Loan #Residential #Development Site

Published: Mar 3, 2026Last updated: March 3, 2026