Press Release  Healey-Driscoll Administration Announces Conversion of Former State Hospital into a 141-Unit Housing Development

Foxborough — Today, the Healey-Driscoll Administration announced that a former state hospital will be converted into more than 100 units of affordable housing, financed by millions of dollars in state and federal tax credits, subsidies and funding. 

Walnut Street is a 141-unit housing development located on the site of the former Foxborough State Hospital, which closed in 1975. The new housing development consists of 141 new construction units, restricted to those age 55 and over. A total of 120 units will be reserved for individuals or families earning less than 60 percent of the area median income, and 35 of those will be further reserved for those earning less than 30 percent of the area median income. 

The development is a partnership between Peabody Properties, Affordable Housing Services Collaborative, and Onyx, a new Black woman owned developer specializing in affordable housing with a focus on equity and inclusion.   

“These 141 homes represent a much-needed boost to our housing production in Massachusetts and are a prime example of how we can utilize state-owned land to meet our housing needs,” said Governor Maura Healey. “We need to create more housing across the state to drive down costs and make Massachusetts a more affordable place for everyone. Developments like Walnut Street are a creative solution as we work to turn the tide of rising housing costs for our residents.” 

“Rising housing costs are impacting people across Massachusetts, especially our older residents,” said Lieutenant Governor Kim Driscoll. “By reserving these new homes for those age 55 and older and making the majority of them affordable, we’re sending a message that we value our long-time Massachusetts residents and want them to stay in the state they helped make a great place to live.” 

Walnut Street sits on 16 acres of land from the former state hospital and was given to the Foxborough Housing Authority by the state to create affordable housing for the region. Utilizing surplus state land for housing is a key part of the Healey-Driscoll Administration's strategy to meet the state’s demand for more housing and drive down costs for Massachusetts residents. 

“Walnut Street is an example of the enormous potential for utilizing state-owned land to build more housing for Massachusetts residents,” said Ed Augustus, Secretary of Housing and Livable Communities. “But it is also an example of where we can do better. The process for disposing of surplus state land for important uses like housing has, in the past, taken too long. The Affordable Homes Act proposed by the Healey-Driscoll Administration would create paths to streamline the disposition of properties like this.”  

The Healey-Driscoll Administration used a variety of federal and state tax credits and other funding to support the project. Developers the Affordable Housing Services Collaborative and Onyx were awarded $14 million in subsidies from the Executive Office of Housing and Livable Communities. The project also received $5.7 million in American Rescue Plan (ARPA) rental funds, $3.65 million in state Low-Income Tax Credits and $1.1 million in federal 9% Low-Income Tax Credits. The development will also receive approximately $900,000 in federal 4% Low-Income Tax Credits to be finalized at closing.  

The town of Foxborough worked collaboratively with the state on the development. 

"As Foxborough's acting town manager, I was thrilled to learn of the $25 million in state and federal funding, coupled with tax credit subsidies, for the Walnut Street affordable housing project,” said Acting Town Manager of Foxborough Paige Duncan. “This significant financial support highlights a collaborative initiative between our town and state and federal government agencies, reflecting our shared commitment to addressing the pressing needs of Foxborough's seniors and seniors across the region. The Foxborough Housing Authority and the town have worked on this project for years, and witnessing it come to fruition is extremely gratifying. The Walnut Street project will serve as a flagship endeavor, promising affordable and accessible housing for our beloved seniors at a time of great need."  

“It’s going to take smart planning, persistence, and bold action to address a housing crisis that is squeezing out seniors and working people in the commonwealth," Senator Paul Feeney (D-Foxborough) said. "I’m proud and grateful that those ingredients came together for a historic public-private partnership in our community that will provide opportunities for many residents to live affordably. There were a lot of moving pieces and challenges to overcome, yet this collaboration of local, state, federal, and private partners, led by Town Manager Paige Duncan with the unwavering support of the Healey-Driscoll Administration stayed focused on the goal of providing much-needed housing opportunities in our region."   

Walnut Street also meets the state’s sustainable and green housing goals and is designed to meet Passive House certification standards, including the use of all-electric heating and cooling and solar arrays. In addition, the design includes special attention to indoor air quality and outdoor green characteristics such as stormwater management and drought-resistant plantings.  

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