PELHAM — Construction of the first affordable apartments in Pelham is underway at 20-22 Amherst Road, a $22 million project that will provide housing for 34 families when it is complete in early 2025.

Home City Development Inc., a Springfield nonprofit, is using the previously developed 8-acre site to construct the multi-family Amethyst Brook Apartments, a mix of one-, two- and three-bedroom rentals for people earning up to 60% of the area median income.

The development, supported by the state’s Executive Office of Housing and Livable Communities, takes its name from the stream that runs along the back of the property. An existing farmhouse, a former factory building and other outbuildings will be removed from the site.

Peter Serafino, director of real estate development for Home City, said the Nov. 2 groundbreaking comes after a lengthy process of putting together the funding and getting a comprehensive permit under the state’s Chapter 40B law. That permit was approved by the town’s Zoning Board of Appeals in August 2021.

“One of the most notable aspects is having to go through Chapter 40B,” Serafino said. “It was a great experience and we got a lot of support from Pelham for this undertaking. I give them a lot of credit for being engaged in it.”

Though Pelham is a small town with limited infrastructure, the property has both public water and sewer lines from Amherst. The town invested Community Preservation Act money and other support came from the Community Economic Development Assistance Corp., the Massachusetts Housing Investment Corp. and Dorfman Capital.

A 16-month construction period is expected, with some of the work including retaining walls and stormwater treatment. The general contractor is Western Builders of Granby, with Architecture Environment Life of East Longmeadow handling the design, with the two new buildings to look like other homes in Pelham.

Both will be fossil fuel free, all electric, with rooftop solar. The larger building consisting of 28 apartments will be certified to Passive House standards, while the smaller building, with six apartments is being built to Energy Star standards. The property will contain charging stations for electric vehicles.

Tenants will be selected by lottery.

Serafino said the project marks a significant investment and thanked Gov. Maura Healey, state Sen. Jo Comerford, D-Northampton, and state Reps. Mindy Domb, D-Amherst, and Aaron Saunders, D-Ludlow, for their support.

“The need for all types of new housing throughout our region is well documented, and the town of Pelham has stepped up to make this development come to fruition,” Serafino said.

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