Eastern Bank Provides $44 Million in Financing for Multi-Site Affordable Senior Housing Development in New Hampshire
Eastern Bank has announced financing for a major multi-site affordable senior housing development that will preserve and expand housing opportunities for older adults across four New Hampshire communities.
The project, sponsored by Housing Initiatives of New England Corporation, a nonprofit organization that develops and operates affordable senior housing throughout New England, will support the rehabilitation of 122 existing affordable housing units and the construction of 28 new units for moderate-income seniors.
The development spans properties in Tamworth, Bethlehem, Manchester and Pelham, creating a coordinated investment in affordable housing across multiple communities.
Eastern Bank is providing $28.3 million in construction financing and $15.7 million in permanent financing for the project. The financing is structured through a tax-exempt bond issuance by New Hampshire Housing and supported by Low-Income Housing Tax Credits.
The financing structure brings together multiple sources of capital to support both the rehabilitation of existing senior housing and the construction of additional units.
The project comes at a time when affordable housing remains a major concern across New Hampshire and throughout the broader New England region.
For older adults living on fixed or moderate incomes, rising housing costs can create significant financial pressure. Preserving existing affordable housing while expanding the supply of new units can help seniors remain in their communities and maintain access to stable, quality housing.
Preserving Affordable Housing for Seniors
The project will focus on improving and preserving 122 existing affordable senior housing units while adding 28 new units.
The rehabilitation component is designed to help ensure that existing properties remain safe, sustainable and financially viable over the long term.
Affordable housing developments often require substantial capital investment to maintain buildings, improve energy efficiency, modernize common areas and address long-term infrastructure needs.
Without adequate financing, existing affordable housing units can face deterioration or eventually be converted to market-rate housing.
The financing provided by Eastern Bank will allow Housing Initiatives of New England to undertake improvements across the four communities while maintaining affordability for senior residents.
The construction of 28 new units will also expand housing availability for moderate-income seniors.
The combination of rehabilitation and new construction provides a comprehensive approach to addressing the needs of older residents.
Cyndy Taylor, President of Housing Initiatives of New England, said the financing will help preserve and expand affordable senior housing at a time when the need for such housing remains significant.
“Eastern Bank’s financing of this project enables the preservation and expansion of affordable senior housing in four New Hampshire communities at a time when access to affordable housing remains a critical need across our region,” Taylor said.
She explained that each property involved in the project has its own characteristics and needs.
By coordinating improvements across the four sites, the organization can address those individual needs while pursuing a broader strategy to maintain long-term affordability.
“Each property is unique, and with Eastern Bank’s financial support, we are able to reinvest in them in a coordinated way, ensuring they remain stable, sustainable and affordable for our senior residents well into the future,” Taylor said.
Complex Financing Structure Supports Development
The project required a sophisticated financing structure involving multiple sources of capital.
Eastern Bank is providing construction financing of $28.3 million and permanent financing of $15.7 million.
The financing is structured through a tax-exempt bond issuance by New Hampshire Housing and supported by Low-Income Housing Tax Credits.
Tax-exempt bonds are commonly used to support affordable housing projects by providing access to financing at favorable interest rates.
Low-Income Housing Tax Credits are another important source of capital for affordable housing development.
Together, these financing tools can help developers fund construction and rehabilitation projects while maintaining rents at affordable levels for eligible residents.
The use of multiple financing sources requires significant coordination among lenders, developers, government agencies and other participants.
Housing Initiatives of New England said it sought a banking partner with experience in structuring complex community development transactions.
Taylor noted that the organization needed a financial institution capable of effectively combining tax-exempt bonds and Low-Income Housing Tax Credits with other available resources.
“These transactions are sophisticated, and we sought a banking team experienced in effectively applying a range of resources, from tax-exempt bonds to Low-Income Housing Tax Credits,” she said.
According to Taylor, Eastern Bank’s Community Development Lending team took the time to understand the unique requirements of the project and develop a financing structure tailored to the development.
Collaboration Across Four Communities
The multi-site nature of the project added another layer of complexity.
Rather than financing a single development in one location, the transaction involves properties in four separate New Hampshire communities.
The properties are located in Tamworth, Bethlehem, Manchester and Pelham.
Each community has its own housing market, demographics and development needs.
The project therefore required a coordinated financing approach that could address the different requirements of each site.
Yongmei Chen, Senior Vice President and Commercial Group Director of Community Development Lending at Eastern Bank, said the financing required collaboration from the beginning of the process through completion.
“Bringing together the financing of four properties requires a thoughtful, collaborative approach from start to finish,” Chen said.
The project demonstrates how community development financing can support affordable housing across multiple markets through a single coordinated transaction.
Chen said Eastern Bank is proud to support Housing Initiatives of New England’s efforts to advance affordable senior housing in New Hampshire.
The bank is also working with New Hampshire Housing to purchase a bond that will help enable the construction and rehabilitation work.
Supporting Housing Stability for Older Adults
Affordable senior housing plays an important role in supporting housing stability for older adults.
Many seniors rely on fixed incomes, including retirement savings, pensions and government benefits.
When housing costs rise faster than income, older residents may be forced to reduce spending on healthcare, food or other essential needs.
Affordable housing can help reduce that financial pressure and allow seniors to remain in their communities.
Housing developments designed for older residents can also provide access to community spaces, supportive services and environments tailored to the needs of senior households.
The preservation of existing affordable units is particularly important because the cost of developing new housing can be substantial.
Rehabilitation financing allows nonprofit developers to extend the useful life of existing properties and ensure that units remain available to residents who need them.
The addition of new units further expands the supply of affordable housing.
The New Hampshire project therefore addresses both sides of the housing challenge by preserving existing homes and creating additional housing opportunities.
Eastern Bank Expands Community Development Lending
The financing is part of Eastern Bank’s broader commitment to community development lending.
The bank provides a range of financing products designed to support affordable housing developers, nonprofit organizations and community development projects.
Its offerings include construction and real estate financing, working capital lines of credit, multi-layered leverage loans for New Markets Tax Credit and Low-Income Housing Tax Credit projects, and tax-exempt bond financing.
Eastern also provides treasury management and deposit products designed to support the financial operations of nonprofit organizations and community development entities.
These services can be particularly important for organizations managing complex projects that involve multiple funding sources and long-term financial commitments.
By offering a broad range of financing and treasury solutions, banks can help community development organizations manage both construction needs and ongoing operations.
The affordable housing sector often requires specialized financial expertise because projects may involve government programs, tax credits, bond issuances, grants, equity investments and traditional debt financing.
A lender with experience across these areas can help developers coordinate the different components of a transaction.
Supporting Nonprofit Housing Developers
Housing Initiatives of New England is a nonprofit developer and operator focused on providing high-quality affordable senior housing throughout New England.
The organization’s work includes developing, preserving and operating housing designed to serve older adults with moderate and lower incomes.
Nonprofit housing developers play a critical role in expanding affordable housing because they often focus on communities and populations that may not be served adequately by traditional market-rate development.
However, nonprofit developers also face significant challenges, including rising construction costs, higher interest rates, limited land availability and complex regulatory requirements.
Access to specialized financing can help these organizations continue to develop and preserve affordable housing.
The partnership between Housing Initiatives of New England and Eastern Bank demonstrates how nonprofit developers and financial institutions can work together to address regional housing needs.
New Hampshire Housing Plays Important Role
New Hampshire Housing is also an important participant in the project through the tax-exempt bond financing structure.
State housing finance agencies play a critical role in supporting affordable housing development.
They can provide access to tax-exempt financing, administer housing programs and help developers connect with public and private sources of capital.
The bond financing associated with this project is designed to support the rehabilitation and construction of affordable senior housing across the four participating communities.
Eastern Bank’s purchase of a bond helps provide the financing necessary to move the project forward.
The transaction illustrates the importance of collaboration between banks, nonprofit developers and public housing agencies.
Experienced Community Development Team
The Eastern Bank team advising on the transaction was led by Yongmei Chen, Senior Vice President and Commercial Group Director of Community Development Lending, and Angela Meehan, Senior Vice President and Community Development Lending Team Leader.
Their involvement reflects the specialized expertise required to structure complex affordable housing transactions.
Community development lending teams must often evaluate not only traditional credit considerations but also tax credits, government programs, project economics and long-term affordability requirements.
The ability to coordinate these factors is essential to completing large-scale affordable housing projects.
Long-Term Impact Across Four Communities
The financing is expected to provide long-term benefits for seniors and communities across New Hampshire.
The rehabilitation of 122 existing units will help preserve affordable housing that is already serving older residents.
The construction of 28 new units will expand the supply of housing available to moderate-income seniors.
Together, the 150 units involved in the project represent a significant investment in the region’s affordable housing infrastructure.
The improvements will help ensure that the properties remain stable, sustainable and affordable for years to come.
For residents, the project can provide greater housing security.
For communities, maintaining affordable senior housing can help support local stability and allow older adults to remain close to family, healthcare services and community networks.
Eastern Bank’s financing of the multi-site New Hampshire project highlights the important role that specialized community development lending can play in addressing the region’s affordable housing needs.
The transaction combines construction financing, permanent financing, tax-exempt bonds and Low-Income Housing Tax Credits to support both rehabilitation and new construction.
The project also demonstrates the value of coordinated planning when multiple properties and communities are involved.
As housing affordability continues to be a major challenge across New England, financing solutions that preserve existing affordable units while supporting new construction will remain increasingly important.
Through its partnership with Housing Initiatives of New England and New Hampshire Housing, Eastern Bank is helping support a project that will benefit senior residents in Tamworth, Bethlehem, Manchester and Pelham.
The development represents a long-term investment in affordable housing, community stability and the ability of older adults to remain in safe, quality homes.
For Eastern Bank, the transaction also reinforces its broader commitment to community development lending and its role in supporting nonprofit organizations and affordable housing initiatives throughout the region.
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