MassDevelopment, Eastern Bank Issue $7.76M Tax-Exempt Bond to Convert South Boston Convent Into 36-Unit Senior Housing

MassDevelopment has issued a $7,760,000 tax-exempt bond on behalf of 207 E Street LLC, an affiliate of South Boston Neighborhood Development Corporation, to finance the conversion of the vacant former St. Augustine's convent at 207 E Street in South Boston into 36 affordable apartments for seniors. Eastern Bank purchased the bond, lowering the borrower's cost of capital, and the agency announced the transaction on September 15, 2026.

The project, named McDevitt Senior Homes, will transform a five-story institutional building that has stood since 1895 into a fully income-restricted senior housing community. Construction is underway and is expected to be completed in early 2028.

Capital Stack and Federal Tax Credits

In addition to the $7.76 million tax-exempt bond, MassDevelopment assisted the Massachusetts Executive Office of Housing and Livable Communities with the approval of federal tax credits expected to generate approximately $11.7 million in equity for the project. The building was acquired by South Boston Neighborhood Development Corporation's affiliate through a below-market purchase agreement with the Paraclete Foundation, which the organization entered in 2022. The sale closed around April 2024 at a reported price of $3.5 million, with proceeds from the transaction funding scholarships for local youth.

Eastern Bank's involvement extends beyond the bond purchase. The institution is also providing a construction bridge loan and an equity investment in the project.

"Every older adult deserves a safe, stable and affordable place to call home, and community development lending expertise is one way we at Eastern help to make that possible," said Yongmei Chen, Senior Vice President, Commercial Group Director of Community Development Lending of Eastern Bank. "Beyond purchasing the tax-exempt bond, we are deepening our commitment with a construction bridge loan and an equity investment, working with MassDevelopment and South Boston Neighborhood Development Corporation to expand affordable housing options in South Boston."

The Eastern Bank Foundation also contributed a philanthropic grant to support the renovation.

Project Details: Affordability, Design, and Services

All 36 one-bedroom units at McDevitt Senior Homes will be income-restricted. Of those, 19 units are affordable at or below 50% of Area Median Income and 16 units are targeted at residents earning at or below 30% of AMI, serving very low-income seniors. One unit is designated for a resident manager.

The adaptive reuse project encompasses approximately 31,000 square feet, including a rear addition of roughly 12,730 square feet. The design, by Icon Architecture, is planned to be fully electric and LEED Silver-certifiable, retaining and restoring the historic brick exterior while gut-renovating the interior and adding an elevator, common spaces, and updated building systems. Kaplan Construction began construction on the project in September 2026.

South Boston Neighborhood House, a local human services agency, will provide on-site supportive services for residents once the building is occupied.

Institutional History of the Property

The former St. Augustine's convent opened in 1895. In 2008, the Paraclete Foundation acquired the building to operate educational and after-school programs for local youth. Those programs ceased during the COVID-19 pandemic. South Boston Neighborhood Development Corporation entered into the below-market purchase agreement with the Paraclete Foundation in 2022, and the Boston Planning and Development Agency approved the McDevitt Senior Homes project following a public process that included a virtual community meeting in October 2022.

Statements from Key Parties

"The redevelopment of this historic building is the latest example of how South Boston Neighborhood Development Corporation is working to meet the needs of its community by creating and maintaining affordable housing options," said Navjeet Bal, President and CEO of MassDevelopment. "MassDevelopment is pleased to partner with Eastern Bank in support of the organization as it creates 36 new affordable homes for seniors in South Boston."

"McDevitt Senior Homes represents more than a new building — it's a commitment to our seniors and to preserving the fabric of South Boston," said Donna Brown, Executive Director of South Boston Neighborhood Development Corporation. "As housing costs rise, too many older adults face the risk of displacement. This development ensures that seniors who helped build this neighborhood can remain here with stability, dignity, and community."

South Boston Neighborhood Development Corporation has created and preserved affordable housing for South Boston residents since 1983. The organization is a state-certified community development corporation that also provides quality-of-life programming and economic development initiatives. MassDevelopment previously supported the organization with a $6.2 million tax-exempt bond and a $414,000 award from the Brownfields Redevelopment Fund in 2015 to build 24 units of affordable housing for low-income veterans in South Boston.

In fiscal year 2026, MassDevelopment financed or managed 538 projects, generating more than $6.52 billion in investment, supporting an estimated 42,113 jobs, and helping create or preserve 4,355 housing units across Massachusetts.

Sources

MassDevelopment — MassDevelopment Financing Supports Conversion of Former South Boston Convent into Senior Housing (September 15, 2026)