EASTHAMPTON — Springfield nonprofit Home City Development Inc. has long been planning an affordable housing project on Ferry Street. Now, they are close to finalizing a construction plan, and could be breaking ground this time next year.

Peter Serafino, senior project manager at Home City Development, said construction plans will likely be about 75% complete by Labor Day. In their “most optimistic scenario,” he said construction could start in about a year, and take an additional 12 months to complete.

“This has gone a lot better than most in that [One Industrial Lofts] approached us,” Serafino said. “Finding the site and getting the zoning, that was already done for us.”

Home City Development has signed an option to enter into a lease with One Industrial Lofts, which owns the 11 Ferry St. property, a 2.73-acre parcel within a larger six-building former mill complex that they are in the process of developing into residential and office space. Before the lease is signed, One Industrial Lofts will demolish the existing mill building at 11 Ferry St., where Home City Development will construct a new building in its place.

By the end of the lease, Home City Development will own 11 Ferry St., while One Industrial Lofts develops the other buildings in the 7.16-acre complex into retail space, offices, residential units, restaurants, and more in their One Ferry Street project.

The goal is to construct a five-story, 96-unit complex that is highly energy-efficient. The building will have 61 one-bedroom units and 35 two-bedroom units, with 134 parking spaces. Twenty-seven units will be restricted to households with income at or below 30% of area median income (AMI), and 64 will be restricted to 60% AMI. Five of the 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.

“It’s a way of helping those who most need housing,” Serafino said.

To construct the building, Home City Development plans to use a panelized construction method atop a steel podium. These panels arrive at the site already complete with insulation and windows, which Serafino said “should save us time on construction.”

A primary goal of the 11 Ferry St. development is energy efficiency. The building is being designed in accordance with Energy Star and Zero Energy Ready certification standards, complete with a rooftop solar array and electric vehicle charging stations. The property will also feature a bike lane connecting Ferry Street to the Manhan bike trail.

“This building, when done, is going to be a highly efficient, all-electric building,” said Serafino.

The property is part of Easthampton’s Ferry Street Development District, created by the city in July 2018. The city has been pursuing grants, including a Massachusetts Housing Works Grant that was applied for in June 2024, for improvements to the district such as streetscaping, upgraded water and sewer lines, housing production, and increased connectivity to the rest of the city.

The project has already been approved for several sources of funding, including a $1.2 million Development Increment Financing Loan from the city of Easthampton, and $500,000 in Easthampton Community Preservation Act funds. Home City Development also expects to have a construction loan and a $6.3 million permanent loan to be provided by a bank or quasi-public lender. Additional funding sources include $11.3 million in soft debt from the Massachusetts Executive Office of Housing and Livable Communities, and Massachusetts Low Income Housing Tax Credits.

Because of the scale of this development, Home City Development is pursuing both 4% and 9% Low Income Housing Tax Credits. This type of funding is designed to encourage affordable housing development, but can also be challenging to secure. The 4% credits require the use of tax-exempt bonds, which Home City Development hopes to secure in 2025, according to Serafino.

“They’re extremely competitive,” he said of the bonds. “That’s the biggest challenge we’re facing right now.”

The development at 11 Ferry St. is just one project in a major push for housing development in Easthampton, which is aiming to fulfill the state standard of 10% affordable housing stock in the city.

“Each community has to do something to increase affordable housing,” Serafino said. “Easthampton is doing a really great job.”

Alexa Lewis can be reached at alewis@gazettenet.com.