Eastern Bank Provides $15.5 Million Affordable Housing Construction Loan For Causeway Development
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area median income (ami)financial
Area median income (AMI) is the midpoint of household incomes in a defined region — half of households earn more and half earn less. It’s used to determine eligibility, rent caps, and subsidy levels for affordable housing programs, so investors rely on AMI to estimate demand, potential rental income, and access to tax credits or subsidies for housing projects. Think of it as the neighborhood’s financial center line that shapes policy and market incentives.
massachusetts rental voucher program (mrvp)financial
The Massachusetts Rental Voucher Program (MRVP) is a state-run housing assistance program that gives low-income households a voucher to help pay rent in privately owned apartments, with the government covering part of the monthly cost. For investors in housing or local real estate, MRVP matters because it can provide steady, government-backed rental income to landlords, support tenant stability, and affect local rental demand much like a guaranteed partial rent check.
low-income housing tax creditsfinancial
A low-income housing tax credit is a government program that gives a steady, dollar-for-dollar reduction in federal tax bills to investors who finance or build rental housing reserved for lower-income tenants. Think of it as a long-term tax coupon paid to investors in exchange for keeping rents affordable; it matters to investors because it creates predictable tax savings, shapes expected cash flows and return timing, and reduces development risk by tying incentives to occupancy rules and compliance.
historic tax creditsfinancial
Historic tax credits are government incentives that cut the tax bill for projects that restore or preserve officially recognized historic buildings, acting like a sizable coupon that reduces upfront costs. Investors care because these credits improve a project's cash flow and return on investment by offsetting taxes or being sold to others, but they also come with compliance rules and timing that can affect financing and long‑term risk.
new market tax creditfinancial
A New Markets Tax Credit is a government incentive that gives investors a dollar-for-dollar reduction in their federal taxes when they put money into projects and businesses in low-income communities. Think of it as a coupon that makes risky, long-term community investments cheaper, helping projects get funded that might not otherwise attract capital. For investors, it lowers after-tax cost and can improve returns while supporting development in underserved areas.
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A tax-exempt bond financing is when an entity borrows money by selling bonds whose interest payments are free from certain taxes, most often federal and sometimes state or local income tax. For investors it means lower nominal interest but tax-free income, so yields must be compared on an after-tax basis; for issuers it lowers borrowing costs, similar to getting a loan with a built-in tax discount and affecting both risk and return evaluations.
BOSTON--(BUSINESS WIRE)--
Eastern Bank is pleased to announce $15.5 million in construction financing to Causeway Development for the conversion of a historic mill building at 142 Main Street in downtown Brockton. The project will provide 30 mixed-income housing units—10 market-rate, 15 affordable (up to 60% of the Area Median Income (AMI), and five Massachusetts Rental Voucher Program (MRVP) units (up to 30% AMI)—as well as three ground-level commercial spaces, including a community-oriented coffee shop.
Causeway Development is a Massachusetts-based real estate advisor, investor and development company specializing in creating housing and community spaces where public purpose and private investment meet. The firm specializes in mixed-income and adaptive reuse projects that strengthen local economies and preserve the character of New England communities. The 142 Main Street redevelopment reflects Causeway’s commitment to restoring underutilized properties into lasting homes and vibrant neighborhood anchors.
“Eastern Bank understands our vision for community-oriented development, and has been a trusted partner across several affordable and mixed-income projects,” said Dave Traggorth, Principal of Causeway Development. “We’re proud to work together again on the revitalization of this historic downtown Brockton property, which will bring new housing, new energy and a renewed sense of place to Main Street.”
“This redevelopment blends Low-Income Housing and Historic Tax Credits to make preservation and affordability work hand in hand,” said Dan Hubbard, Principal of Causeway Development. “Eastern Bank’s Community Development Lending team understands the intricacies of these layered financings and brings a collaborative, solutions-oriented approach that helps turn complex projects like this into reality.”
“We’re proud to support Causeway Development’s project at 142 Main Street in Brockton, which will bring affordable housing and additional economic opportunity to downtown Brockton,” said Pam Feingold, Senior Vice President and Group Director of Community Development Lending of Eastern Bank.
Eastern provides a range of community development financing offerings to fund the development of affordable housing and support the credit needs of non-profits. Community development lending solutions include construction and real estate financing, working capital lines of credit, multi-layered leverage loans for both New Market and Low-Income Housing Tax Credit projects, tax-exempt bond financing, and highly sophisticated treasury services and deposit products.
The Community Development Lending team advising Causeway Development includes: Executive Vice President, Chief Commercial Banking Officer Greg Buscone; Senior Vice President, Group Director of Community Development Lending Pam Feingold; and Vice President, Commercial Relationship Manager Aaron Gladden.
About Eastern Bank
Founded in 1818, Eastern Bank is Greater Boston’s leading local bank with more than 125 branch locations serving communities in eastern Massachusetts, southern and coastal New Hampshire, and Rhode Island. As of December 31, 2025, Eastern had approximately $30.6 billion in assets. Eastern provides a full range of banking and wealth management solutions for consumers and businesses of all sizes including through its Cambridge Trust Wealth Management and Private Banking Divisions, which include the largest bank-owned independent investment adviser in Massachusetts with $9.6 billion in assets under management. Eastern takes pride in its advocacy and community support that includes more than $240 million in charitable giving since 1994. An inclusive company, Eastern is comprised of deeply committed professionals who value relationships with their customers, colleagues and communities. Join us for good at www.easternbank.com and follow Eastern on Facebook, LinkedIn, and Instagram. Eastern Bankshares, Inc. (Nasdaq: EBC) is the holding company for Eastern Bank. For investor information, visit investor.easternbank.com.
