Developers who want to convert EconoLodge in Hadley into affordable housing get $4.5M boost

  • EconoLodge hotel at 329 Russell St. in Hadley gazette file photo

Staff Writer
Published: 11/6/2022 8:22:33 PM
Modified: 11/6/2022 8:22:05 PM

HADLEY — Conversion of a Route 9 motel into affordable apartments received a financial boost on Friday when a public-private community development financial institution said developers could access some $4.5 million in loans for the project.

The initiative is one of 17 in 12 Massachusetts communities being supported by $19.2 million from the Community Economic Development Assistance Corp.

Another project to benefit will include redevelopment of downtown Greenfield properties into affordable units and additional shelter space.

In Hadley, Valley Community Development’s plans to turn the EconoLodge, at 329 Russell St., from 63 hotel rooms into 50 supportive affordable apartments, a mix of studios and one bedrooms, will be aided with an acquisition loan of up to $4.1 million, along with a $400,000 predevelopment loan.

“We have great aspirations for the continued success of hotel/motel conversions as an emerging strategy to provide permanent supportive housing for persons experiencing houselessness,” CEDAC Executive Director Roger Herzog said in a statement.

The EconoLodge was built in 2003 and has been used this fall as off-campus dormitory rooms for transfer students at the University of Massachusetts. The Select Board in August endorsed Valley CDC’s plans for the project.

CEDAC’s commitment is creating or preserving 970 affordable units across the state.

The Greenfield project includes 30 supportive apartments and adding 10 beds and a cafeteria to the shelter.

Scott Merzbach can be reached at smerzbach@gazettenet.com.
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