Lowell trust approves conditional $500,000 loan to Bridge Club to buy 267 Pawtucket St. for veteran housing

The Lowell Affordable Housing Trust Fund voted Dec. 17 to proceed with a conditional $500,000 loan to the Bridge Club of Greater Lowell to support the acquisition and operation of 267 Pawtucket Street as 29 permanent affordable single-room-occupancy units for veterans.

Bob Cox, executive director of the Bridge Club of Greater Lowell, told the Trust the organization needs a bridge infusion to close on the property. "This is a very rare and exciting opportunity," Cox said, describing recent growth through VA contracts and multiple grants that expanded the group's reentry and veteran services. Cox said the purchase price is $2,200,000 and that Rockland Trust required about $440,000 as the down payment; the $500,000 request to the Trust was presented as the rounding of the gap needed to secure financing and proceed to closing.

Cox described the project's operations plan: the 29 units will be single-room-occupancy and limited to veterans. "They have to be a veteran. They have to be eligible for VASH," Cox said, referring to site-specific VASH vouchers administered through HUD and the Department of Veterans Affairs. He added that the Bridge Club will offer on-site staffing and wraparound services, require sobriety as a condition of residency, and coordinate with local veteran services staff.

City staff and the manager's office said the project appears eligible for American Rescue Plan Act (ARPA) funding rules the Trust must follow. Connor, speaking for the administration, told the board that the Trust's ARPA expenditure obligation would be satisfied when the property closes and that an affordability restriction recorded with the deed would be required. "If this funding allows you to close, we would also need you to put an affordability restriction on the property that would need to be recorded with the deed," Connor said, noting the closing must occur before Dec. 31, 2026 to meet ARPA timelines.

Board members asked about environmental due diligence and bank commitments. Cox said a Phase I environmental study and radon testing were completed for the bank and returned clean; he said Rockland Trust was prepared to issue a commitment letter and close by the end of the month if funding were in place.

Eric Dawson moved that the Trust proceed to make a loan of $500,000 to the Bridge Club of Greater Lowell, subject to: submission of the Trust application, law department drafting and review of loan/commitment documents, staff confirmation of ARPA conformity, and receipt and review of the clean Phase I report. The motion passed; the transcript records the motion's approval but does not include a roll-call tally.

Next steps: law department staff were directed to prepare loan documents for board review and staff will confirm ARPA eligibility and provide the Phase I report to the Trust. The Bridge Club will continue pursuing VASH voucher allocations and other private and public financing for long-term operations.