HADLEY — A $16.3 million development that will bring 50 affordable apartments to a former hotel on Route 9 will soon get underway.
With Valley Community Development earlier in July securing the final financing for what will be known as Russell Crossing, crews from Keiter Corp. of Florence will be at the 329 Russell St. site to begin transforming what had been an EconoLodge.
“Renovation will begin in August 2026 and finish in late spring 2027, with residents moving in during summer-fall 2027,” Valley CDC Executive Director Alexis Breiteneicher wrote in an email.
Located in front of the Mountain Farms Mall, the perimeter of the property has been secured by a chain-link fence in advance of the arrival of construction crews.
When complete, Russell Crossing will include 12 one -bedroom apartments and 39 studio apartments, all with kitchens, with enough room for up to 63 low- and moderate-income individuals.
Breiteneicher said there will be units set aside for veterans as part of the Veterans Affairs Supportive Housing, or VASH program, with support from the VA in Leeds. There will also be units reserved for people coming out of homelessness and other units considered “workforce housing,” for those earning up to 60% of the area median income, generally minimum wage earners. Valley CDC is also partnering with Clinical & Support Options to offer support services at the property.
Keiter posted on its Facebook page about the development and its collaboration with both Valley CDC and Austin Design.
“By taking an existing hotel space and reshaping it into accessible homes, we are working together to address the critical need for affordable housing in our local community,” the company wrote.
Financing includes both federal and state low-income housing tax credits, American Rescue Plan Act supportive housing funding, and grants from the Federal Home Loan Bank of Boston Affordable Housing Program and the Hadley Affordable Housing Trust Fund.
Pre-development financing was provided by the Community Economic Development Assistance Corporation. The construction loan is coming jointly from PeoplesBank and Greenfield Savings Bank.
The total cost, Breiteneicher said, includes the $4.1 million acquisition of the three-story, 29,230-square-foot hotel from Hampshire Hospitality Group. The building was constructed in 2003.
Until this spring, Craig’s Doors: A Home Association, Inc. had been using the building as an overflow site for its homeless shelter in Amherst.
Work on Russell Crossing comes as Valley CDC is nearing completion of the Amherst Community Homes. The 30 dwellings, made up of 15 duplexes, are offering homeownership opportunities.
As of the middle of July, 24 of the 30 units have their certificates of occupancy and one buyer was expected to sign a purchase-and-sale agreement, Breiteneicher said.
Site work remains to be done and will continue, even as families begin to move in.
