LYNN– The Affordable Housing Trust Fund Board has approved $200,000 towards the Lynn Housing Authority and Neighborhood Development and Lynn Armory project in their meeting on Tuesday evening.

The funding request is tied to the redevelopment of the historic Armory building on Pleasant Street. The project will construct the building into 52 units of affordable living for veterans, which has been in progress for years and is now nearing the construction phase. 

Aaron Clausen, Principal Planning Director and board member, described the request as part of a broader policy designed to allow flexibility in funding projects that face urgent financial gaps.

“This is just a policy that we put in place to be a little bit more about how we can ensure these projects are proceeding to construction and completion,” Clausen explained, noting that projects must have already applied for trust funding and demonstrate agency.

The Armory project dates back to 2015, when the city first identified the historic building as an opportunity to address veteran homelessness. By 2018, the property had been formally transferred for redevelopment into veteran housing. Since then, the project has navigated a complex financing process, including multiple rounds of historic tax credit applications. 

Jeff Weeden, LHAND planning and development manager, said the project is now close to closing but has encountered new hurdles. Among them is a recent change in electrical code requirements that forced a redesign of the building’s HVAC system, adding approximately $400,000 in unexpected costs. 

“That’s a tangible thing that came up in January as we were… going through the closing,” Weeden said, adding that the additional $200,000, “…would go a long way to fill that gap.” 

The development will include units affordable to residents earning between 8% and 30% of the area median income and will feature on-site services, including case management for every resident. Plans also call for preserving the building’s historic exterior while transforming the interior into a modern, atrium-style living space. 

The board acknowledged the project’s significance but wrestled with the financial implications of the request. The housing trust is currently just over $500,000 remaining, making the proposed allocation a substantial portion of its available funds.

“My concern comes from the perspective of preserving this fund and making sure that it can play the maximum role…in developing affordable housing,” board member Jonathan Fienberg stated. 

“Putting nearly half of our quickly dwindling funds into a project that’s already received a lot… gives me a pause,” Fienberg added. 

Others discussed that the timing and impact of the project justified the investment, particularly given the lack of sufficient funds to initiate new developments. 

“The ability to make a difference on a project that is actually moving forward… calls out for action,” Mayor Jared Nicholson said. “Rather than sit on an amount that really wouldn’t be able to start a new project.” 

Several participants also pointed to the unpredictable nature of development costs, especially in historically preserved buildings.

“There’s a ton of money that ends up getting pumped in that you weren’t really looking for,” board member Jamie McGrath noted, expressing understanding for the funding gap. 

To address concerns about financial stewardship, the board amended the funding approval to include a potential “clawback” provision. Under this condition, if construction costs come in below projections, some or all of the additional funding could be returned to the housing trust. 

“If there is a construction saving…the condition of $200,000 could come back…for repurposing,” Clausen stated while introducing the motion. 

Despite lingering concerns, members ultimately agreed that ensuring the project reaches its completion, particularly given its focus on vulnerable veterans. 

“I think it’s really important to get this project to the finish line,” Clausen stated, calling it a ‘worthy enough trade-off’ even given the trust’s limited resources.