Nearly 200 new apartments to be constructed in Easthampton, Hadley and Holyoke, almost all of which will be set aside for low- and moderate-income residents, are moving forward as part of $182 million in low-income housing credits and subsidies supporting 21 developments statewide approved by the Healey-Driscoll Administration.
Among the regional projects announced by Gov. Maura Healey last week are funding for Home City Development Inc.’s Ferry Street in Easthampton, which will have 96 apartments, Valley Community Development’s EconoLodge in Hadley, which will have 50 apartments for tenants, and the third phase of South Holyoke Homes, with 40 apartments being developed by Housing Innovations and Programming Inc., working with the Holyoke Housing Authority.
Easthampton’s development, part of the Ferry Street complex, will be in a five-story, highly energy-efficient building, with 61 one-bedroom units and 35 two-bedroom units, and 134 parking spaces.
Of the apartments inside the new 11 Ferry St. building, 27 will be restricted to households with income at or below 30% of area median income and 64 will be restricted to 60% AMI. Five apartments will be market rate. Residents of the 27 units at 30% AMI will benefit from a rental voucher, and five units will give preference to U.S. military veterans.
“The funding award gets us into the final stage of pre-construction activities,” said Peter Serafino, senior project manager for Home City Development.
Construction will likely start in the middle of 2026 and will last about a year, meaning occupancy by mid-2027.
EconoLodge in Hadley
Construction on the EconoLodge development on Route 9 in Hadley could also begin in spring 2026, with a yearlong phase of building out the former hotel, said Valley Executive Director Alexis Breiteneicher. That would mean a move-in in late spring or early summer 2027.
The development will include 12 one-bedrooms and 39 studios, all with kitchens. Of the units, 33 would be reserved for people making 30% or less of the AMI, with a single person making $23,000 or less and for two people making $26,300 or less; and 17 would be reserved for people making 60% or less of the AMI, with a single person making $46,020 or less and for two people making $52,560 or less. With one staff member apartment, the maximum capacity on site would be 63.
Clinical & Support Options will provide supportive services for residents, though those living there are not obligated to use these, Breiteneicher said.
Craig’s Doors is currently using the former hotel and Valley CDC is working with that organization to identify another location for guests prior to winter.
At South Holyoke Homes, centered around Carlos Vega Park, the first phase of housing construction was completed in 2023 and the second phase, featuring 20 new duplex homes, are currently for sale.
The three local developments are among 21 rental housing developments creating or preserving 1,245 homes across the state, which will use $182 million in low-income housing tax credits and subsidies. These awards were made possible, in part, through the Affordable Homes Act and by Healey’s tax cuts package, which raised the Low-Income Housing Tax Credit to $60 million annually, a $20 million increase that allows the state to support more affordable housing production.
“Our administration is working on all fronts to build more reasonably-priced housing and lower costs for everyone,” Healey said in a statement. “These awards are creating thousands of apartments that people can actually afford. This is helping seniors age independently and close to their families and helping workers afford to live in the communities where their jobs are.”
Housing and Livable Communities Secretary Ed Augustus cited the Easthampton development in his comments.
“Whether it’s a formerly homeless individual in Boston, a senior in Topsfield, or a working family in Easthampton, the homes we’re supporting will change lives,” Augustus said.
Nearly 420 of these homes will be deeply affordable for households earning less than 30% of the AMI, including many individuals and families transitioning out of homelessness. A total of 1,143 of the homes will be affordable to those earning less than 80% of the AMI.
This round of funding includes $32.2 million in federal 4% and 9% Low-Income Housing Tax Credits, $31.6 million in state Low-Income Housing Tax Credits and $118.2 million in direct subsidies from the Executive Office of Housing and Livable Communities. The investments will leverage nearly $450 million in private equity.
Scott Merzbach can be reached at smerzbach@gazettenet.com.
