Construction is set to begin on the redevelopment of senior housing into a new affordable housing development in Salem. 

The redevelopment of Leefort Terrace, once complete, will transform the current 50 public housing units into a 124-unit, climate-resilient community on Salem Neck.

Developer Beacon Communities hosted a groundbreaking ceremony Wednesday.

Leefort Terrace was originally built in the 1950s for elderly and disabled residents. Under the project, the current garden-style apartments, which are located in a coastal floodplain, will be redeveloped into two new buildings built well above expected 2070 floodplain levels. 

One building will be a three-story structure, the other four-stories and both will be a mix of one-, two- and three-bedroom apartments. Both buildings will be all-electric, as well as Passive House certified. 

All apartments will be deemed affordable and available to households with incomes at or below 30% and 60% of the Area Median Income for 99 years. 

Fifty one-bedroom units are subject to further limitations for 99 years, granting households in those units extra rights and rent restrictions in line with state public housing regulations.

The development will also include several residential amenities, including a fitness center,  community room, wellness office, computer stations, tenants’ organization office, property management office and laundry rooms on each floor. 

The project also includes open space along Collins Cove that’s accessible to the public, as well as a private residential courtyard with a grilling area, bocce court and victory gardens. 

Massachusetts Lt. Gov. Kim Driscoll, who was previously mayor of Salem for 17 years, spoke at the event.

“As an administration, we are dedicated to addressing two of our most pressing challenges: housing and climate change,” said Driscoll. “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. Last fall, we expanded the Low-Income Housing Tax Credits (LIHTC) program which helped make projects like this one come to life. As the former mayor of Salem, I know how impactful developments like Leefort Terrace are for the community, and I’m excited to celebrate this groundbreaking.”

Other officials on hand for the groundbreaking included Secretary of Housing and Livable Communities Ed Augustus, Salem Mayor Dominick Pangallo, Salem Housing Authority Executive Director Cathy Hoog, Resident of Leefort Terrace Shannon Bailey, Executive Director of Massachusetts Housing Partnership Clark Ziegler and CEO of Beacon Communities Dara Kovel, who also spoke at the event.

“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,” said Kovel. “We appreciate the patience and support of the residents and look forward to welcoming them into their new homes in early 2026.”

Augustus called Leefort Terrace “the gold standard for affordable and climate-resilient public housing,” 

“Not only does this project replace 50 public housing units, it adds 74 new 100% affordable homes for extremely low-income residents,” he said. “It will be a 100% electric building and able to withstand the weather of the future. Congratulations to Salem Housing Authority and Beacon Communities for this achievement.” 

“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,” said Pangallo. “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.”