SOUTH HADLEY — The longtime regional affordable housing organization Way Finders is accepting applications for a new 60-unit development in South Hadley at the site of a former Big Y grocery store not far from the routes 33 and 116 intersection.
The development on Newton Street, called The Clover, is a four-story building consisting of one-, two- and three-bedroom apartments, a community room, a laundry room and outdoor space. Designed by Dietz & Company Architects, the 66,000-square-foot building mixes different apartment sizes, income eligibility requirements and accessibility levels among its floors.
Prospective tenants can apply on the Way Finders website before the Oct. 1 deadline. The lottery to secure a spot will take place on Nov. 2, and the Springfield nonprofit will contact those selected soon after. Tenants will begin to move in during January and February of next year, said John Gilbert, Way Finders vice president of real estate development.
“I think it’s just really exciting to see this project transform this commercial parcel and get housing in a really needed area,” Gilbert said.
The project has been a long time coming. Way Finders announced plans to develop a new residential building in 2019, but discussion to redevelop the lot next to Ace Hardware stretches back at least a decade.
South Hadley officials have said the town needs more affordable housing, which is one of the reasons residents at a 2018 annual Town Meeting adopted new Smart Growth District zoning to allow affordable housing developments. Subsidized housing makes up 5.86% of the town’s residential units, below the state-mandated 10%. With the additional 60 units, the town will be two-thirds of the way to that benchmark, said Anne Capra, planning and conservation director.
“Building affordable housing involves navigating a very complicated maze of permitting, tax incentive programs and other regulations,” Capra wrote in an email. “You need highly skilled, technically savvy and mission-driven professionals to get the job done. The Way Finders team is exactly that.”
All units are reserved for people making below South Hadley’s median income of $93,910, split into tiers for those earning below 30%, 60% and 80% of that figure.
Half the units are two-bedroom, which Gilbert said are the most in-demand. There are also six wheelchair-accessible units and two units modified to meet sensory impairments. The unit makeup was heavily influenced by state guidelines, Gilbert said.
Initially, Way Finders had more units in the lower income tiers, but construction costs went up during the COVID-19 pandemic. From their first application for state subsidies in 2021 to their reapplication in 2023, the project budget increased $9 million, mostly for construction materials, Gilbert said.
South Hadley agreed to extend permits and give leeway when Way Finders ran into the unforeseen expenses, which Gilbert said ensured the project did not get derailed.
“They’ve been very flexible and amenable to getting us what we need,” Gilbert said. “That has made it a whole lot easier for us to navigate choppy waters.”
Gilbert said residents have largely been welcoming to the project. However, some residents questioned whether Way Finders, as a nonprofit, would be exempt from property taxes. The topic has come up a handful of times in the past year while South Hadley grappled with a $9 million and $11 million Proposition 2½ override vote and structural budget deficit.
Way Finders applies for tax abatements based on its nonprofit status, but the organization does pay property taxes. The Assessor’s Office estimated the building value at $8.2 million for the first half of fiscal year 2027, Gilbert said. However, the bill will not reflect the assessed value but rather income from rents.
This is not uncommon for affordable housing projects, Gilbert said, which would likely be “impossible” to fund and build otherwise.
“The 60 individuals who will occupy the building are going to add to that tax base beyond the real estate tax itself,” he added.
The development itself will also add to the community, Capra added. South Hadley’s Affordable Housing Trust will work with Way Finders to organize a welcome event for the new tenants in the coming months. Ideally, Way Finders would also hold an open house to see the development and outdoor space before tenants move in “so that they can really appreciate that this development is an asset to the community,” she said.
