LYNN — The REAL Program is set to expand its community mission with a new model that merges early childhood education and affordable housing, following a unanimous vote by the Lynn Affordable Housing Trust Fund Board to approve a $130,000 loan loss reserve grant supporting the nonprofit’s purchase of its longtime home at 17 Atlantic St.
Jan Plourde, founder and executive director of The REAL Program, presented the plan Monday night alongside support from Essex County Community Foundation and the LEADS 5.0 initiative — Leaders Engaged and Activated to Drive Systems Change. The $1.15 million acquisition includes three upstairs apartments that will be converted into affordable housing units restricted for tenants earning no more than 60% of the area median income (AMI) for at least 20 years.
The grant from the trust fund will not be used for direct acquisition costs but instead will serve as a financial guarantee — helping the bank issuing the mortgage take on risk it otherwise may not. Plourde said the reserve would function “more or less like an FDIC does for a bank,” offering reassurance without drawing from the funds unless necessary.
“This is a pretty unique situation, and we’re excited to be a proof of concept,” Plourde said. “The REAL Program is ready to take this on — we’re learning as we go, and we’re committed to doing it right.”
REAL, which stands for Reading, Education Assistance, and Literacy, was founded in 2013 to provide early literacy, social-emotional learning, and nutrition programs for children and families in Lynn. The nonprofit has distributed over 150,000 books, installed more than 40 Little Free Libraries, and operated an out-of-school program in partnership with Brickett Elementary School.
The new ownership model would cement REAL’s place in the neighborhood while formalizing the housing component. The apartments — two two-bedroom units and one one-bedroom — would be managed by a property team to be hired by the organization. Plourde said interviews are underway and that she hopes to find someone local, ideally a current or former REAL family member with experience.
Mayor Jared C. Nicholson expressed strong support for the REAL Program’s educational work but also emphasized the leap the board was taking in backing a first-time affordable housing operator.
“This is going to be a leap of faith,” Nicholson said. “Most of our prior grants have gone to established housing developers. But we believe in the compelling nature of the REAL Program and the team you’ve built.”
Plourde acknowledged the challenge and said the organization is working closely with its legal counsel, Sally Calhoun, LEADS team member Brendan Ward, and other neighborhood advisors with housing experience.
The apartments will follow Lynn Housing Authority’s affordability guidelines, with two additional requirements proposed by REAL: all tenants must pass CORI and SORI background checks due to the early education space downstairs, and the property must be fully non-smoking — including all substances, indoors and outdoors.
Board member Jamie McGrath asked whether the organization had experienced issues with past tenants. Plourde said one unit recently became vacant as of April 1 and that the remaining two are currently occupied with no major problems. She said REAL plans to allocate $20,000 annually for building repairs and maintenance, though she noted that some years may require more.
Aaron Clausen, the city’s planning director, made the motion to approve the grant with a series of conditions: a revised project budget reflecting the updated $130,000 request, a 20-year affordability restriction recorded at closing, a projected capital reserve plan, and a finalized loan loss reserve agreement submitted to city staff for review.
The motion was seconded by Jonathan Feinberg and passed unanimously by roll call vote.
“We’re very excited for you,” Nicholson told Plourde at the meeting’s close. “It will be great to have your services for children continue, and we’re proud to support this new model that speaks to the broader needs of the Lynn community.”
