Two Lexington affordable housing projects secured state funding in what Gov. Maura Healey's administration called the largest single round of housing awards in more than a decade.

The Town of Lexington announced Wednesday, Sept. 30 that Causeway Development's 40-unit Lowell Street project received Low Income Housing Tax Credits (LIHTC) and that the Lexington Housing Assistance Board (LexHAB) won Affordable Homes Act funding to build eight accessory dwelling units on LexHAB properties. The Lexington Affordable Housing Trust put up a $1 million local match for the ADU project.

Both awards came from a $278 million statewide package reported by MassLive, which will fund more than 2,500 homes across 20 Massachusetts communities. The financing includes $154.7 million in subsidies from the Executive Office of Housing and Livable Communities, plus state and federal tax credits that state officials expect to generate nearly $500 million in equity.

"Landing two major state awards in the same round is a real vote of confidence in Lexington's approach to affordable housing," Town Manager Steve Bartha said in the press release. "Getting LIHTC funding on the first try is uncommon …"

Bartha added that pairing state ADU funding with a meaningful local match shows the kind of partnership that can keep expanding housing options across town.

Lexington Woods: 40 units on Lowell Street

The Lowell Street project, branded Lexington Woods by Causeway Development, would place 40 apartments across four low-rise buildings at 591 Lowell St., at the intersection of Lowell and North streets. Units range from one to three bedrooms, with rents restricted to households earning between 30% and 80% of area median income.

The town's press release calls the project the state's first Passive House, all-electric, solar-powered, 100% affordable development. South-facing roofs will carry solar panels to power heating and cooling, which the developer says will lower utility bills for residents.

The project has been years in the making. The 2024 Annual Town Meeting voted to authorize the Select Board to release the roughly 3-acre, town-owned parcel for affordable housing. The Affordable Housing Trust fielded seven proposals before recommending Causeway Development in September 2024. The Select Board approved the Land Disposition Agreement on Jan. 27, 2025, and the state issued a Project Eligibility Letter on Aug. 6, 2025. The Zoning Board of Appeals approved a comprehensive permit with conditions on Jan. 8, 2026.

No groundbreaking date has been set. The town's project page notes that developer financing for a fully affordable project can take six to 24 months, with construction adding another 18 to 30 months.

LexHAB ADUs: a distributed approach

The second award funds eight accessory dwelling units that LexHAB will build on properties it already owns, using provisions in the Affordable Homes Act. The Affordable Housing Trust formalized its $1 million commitment by mid-2026, according to the trust's meeting records.

The town described the two projects as complementary. Lexington Woods is a larger multi-unit development, while the ADUs offer smaller units woven into existing neighborhoods.

The exact dollar amounts of both state awards have not been disclosed. The statewide announcement covered 20 communities, and Lexington-specific figures were not broken out in any public document reviewed for this article.

Residents can find more details on the Lowell Street project through the town's project page or the developer's site.