MassHousing has provided a total of $5.5 million in affordable and workforce housing financing to non-profit The Neighborhood Developers (TND) to transform a formerly market-rate rental property at 181 Chestnut Street in Chelsea into a mixed-income housing community.

TND acquired the three-story brick and masonry building at 181 Chestnut Street in 2019. The MassHousing financing will allow TND to rent 30 of the previously unrestricted market-rate units to income-eligible households across a range of incomes, while two of the apartments will be rented at market rates. The property was originally built as a school and was converted to housing in 2015.

Eight apartments will be subsidized with federal housing vouchers and restricted to households earning up to 30 percent of the Area Median Income (AMI), and nine apartments will be restricted to households earning up to 60 percent of AMI. There will be 13 workforce housing units, of which six will be restricted to households earning up to 80 percent of AMI and seven for households earning up to 120 percent of AMI. The AMI for Chelsea is $119,000 for a family of four.

MassHousing is providing TND with a $4.9 million permanent loan and $650,000 in financing from the Agency’s Workforce Housing Initiative.