By Adam Swift
City Manager Fidel Maltez and representatives from developer Pennrose provided an update on the progress of the Veterans’ Home Project to the city council this week.
The public-private partnership between the state and Pennrose will create new veterans-priority housing on the current Old Soldiers’ Home campus, and Pennrose has assured the city that all veterans currently living on the campus will be able to move into new units as the project progresses.
“The City has been working very closely with Pennrose on this project,” stated Maltez. “We expect construction permits to be pulled soon and for this development to proceed with its first phase.”
The city manager said he has also asked the developer to host a community meeting to inform abutters about the progress.
“Since the last update provided to the City Council, several important milestones have been reached,” stated Karmen Cheung, the regional vice president for Pennrose. “Pennrose submitted a full application for Low-Income Housing Tax Credits and state soft funding sources to the Massachusetts Executive Office of Housing and Livable Communities (EOHLC) on November 11, 2025. The application included a request for forty-nine (49) Project-Based Section 8 vouchers to support Veterans households with incomes at 30% and 50% of Area Median Income (AMI).”
Cheung said all of the approximately 120 current residents of the Home are anticipated to be relocated into new units across both Phase I and Phase Il, and the project-based vouchers are intended to cover all households who fall within the 50% AMI income range or below.
Veterans will have 100 percent preference for the affordable units at the redeveloped Veterans’ Home.
Pennrose is preserving all nine buildings that are on the current Soldiers’ Home site, with the only scheduled demolition set for the one-story incinerator building.
The new construction for the project includes 18 units of townhouses, a two-story cafe and community building, and a new building on the east parcel at the corner of Hillside and Crest Avenue.
Phase I is scheduled to include 69 units.
“As of March 2026, EOHLC approved the full funding request, including all forty-nine vouchers, ensuring deep, long-term rental assistance for the Veterans who will be residing at the campus,” Cheung said. “Pennrose will work closely with the Chelsea Housing Authority to explore opportunities to secure additional project-based vouchers to further supplement those awarded through EOHLC.”
In parallel, Cheung said the Executive Office of Veterans’ Services (EOVS) has formally approved the comprehensive supportive services plan developed jointly by Pennrose and Soldier On, a non-profit veteran service provider.
“The approved plan commits significant operational resources to resident support, including case management, telehealth services, the provision of a fresh meal daily for residents that need it, and robust transportation services,” Cheung said. “Transportation will be available up to seven days per week and will prioritize access to medical appointments, essential services, grocery shopping, and recreational activities. Pennrose, DCAMM, and Soldier On are currently coordinating final supportive services agreements to contractually memorialize these approved obligations.”
Councilor-at-Large Leo Robinson has been among the councilors who have raised some questions about the services that will be provided to the Soldiers’ Home residents, noting that currently, many of the residents can receive up to three meals per day.
“Having now received preliminary financing approvals from EOHLC and working towards a May commitment from MassHousing’s Board, closing and construction start are projected for July 2026,” Cheung stated. “Closing calls with Pennrose and the lending and investment teams are actively underway, and all parties have reiterated their commitment to providing the necessary resources to ensure a smooth and collaborative closing and construction process. Pennrose and the development team will host another community meeting to provide updates prior to beginning construction.”
With the adjusted Phase I schedule, Cheung said closing for Phase Il is now targeted to occur in 2027, with construction partially overlapping with Phase I.
“Full completion of Phases I and II is currently projected for 2029,” she said. “While Pennrose will continue to advance the design and coordination of Phases III and IV during this period, we wish to reiterate that all current residents of the Soldiers’ Home will move into the newly constructed homes within Phases I and II prior to the start of construction on Phases IIIl and IV.”
With respect to open space improvements, investment in new and existing landscaped areas for shared neighborhood use is planned to coincide with the construction of Phases III and IV, Cheung added.