SALEM — Earlier this month, developers broke ground on a 124-unit affordable housing development at Leefort Terrace on Salem Neck, which will replace 50 aging garden-style apartments owned by the Salem Housing Authority.
The new climate-resilient complex will consist of a three-story and four-story structure with a mix of one-, two- and three-bedroom apartments. In addition to the new buildings being all-electric and Passive House certified, the units will be built well above the expected 2070 floodplain levels, whereas the previous units were on the ground floor in a coastal floodplain.
All apartments will be made affordable to households with incomes at or below 30% and 60% of the area median income for 99 years; 50 one-bedroom units will be further restricted for 99 years with the households in those units having additional rights and rent restrictions consistent with state public housing regulations.
“Leefort Terrace is the gold standard for affordable and climate-resilient public housing,” said Ed Augustus, secretary of housing and livable communities. “Not only does this project replace 50 public housing units, it adds 74 new 100% affordable homes for extremely low-income residents. It will be a 100% electric building and able to withstand the weather of the future.”
Beacon Communities began demolition work in June, and is now preparing the site for geotechnical groundwork.
This comes after four years of feasibility studies, redesigns, permitting, and public hearings, which sparked intense debate among supporters of the redevelopment and opposing residents who raised concerns including an increased burden on taxpayers, increased traffic, and that a large-scale development would disrupt the quiet and remote life that tenants had become accustomed to.
“We are grateful to our partners at the local, state and federal level, as well as to the Salem Housing Authority, for their collaboration and commitment to expanding housing opportunities that will reduce our carbon footprint and be affordable for generations to come,” Dara Kovel, CEO of Beacon Communities said. “We appreciate the patience and support of the residents and look forward to welcoming them into their new homes in early 2026.”
On-site amenities will include a fitness center, a community room, a wellness office, computer stations, a tenant’s organization office, a property management office, and laundry rooms on each floor. Additionally, there will be a publicly accessible open space along Collins Cove, as well as a private residential courtyard for residents, featuring a grilling area, a bocce ball court and victory gardens.
“The new Leefort Terrace facility will create new homes with dignity for tenants of the Salem Housing Authority and create additional 100% affordable housing for other Salem residents in need,” Mayor Dominick Pangallo said. “The new, more resilient Leefort Terrace represents a step forward for our community in meeting our affordability, climate, and open space goals. Most importantly, it will provide some of our most vulnerable residents with a safe, accessible, and comfortable place to call home.”
Through a collaboration of public and private entities, the project is financed through 4% Low-Income Housing Tax Credits (LIHTC), American Rescue Plan Act funds, Salem Community Preservation Act funds, brownfields and other housing funds, as well as RBC Community Investments, Citizens Bank, Eastern Bank, Massachusetts Housing Partnership, MassDevelopment, MA Affordable Housing Trust Fund, energy efficiency tax credits, and rebates, and real estate tax relief through an Urban Center Housing-TIF agreement.
“As an administration, we are dedicated to addressing two of our most pressing challenges: Housing and climate change,” Lt. Gov. Kim Driscoll said, Salem’s former mayor. “That’s why we’ve passed the Affordable Homes Act into law because it’ll help create thousands of new units of housing that we need and it invests $275 million exclusively to sustainable and green housing initiatives. Our administration has made strides in ensuring that people who say yes to building housing have the support they need to make it happen.”
Leasing for the property is estimated to begin in early 2026 and will continue through the end of the year.
Michael McHugh can be contacted at mmchugh@northofboston.com or at 781-799-5202