Four affordable housing developments across the city are getting more than $1.35 million in Community Preservation Act funding after the Affordable Housing Trust Fund approved its latest round of awards.
The Affordable Housing Trust Fund Board of Trustees approved $1,358,362 during its spring 2026 funding round to support projects expected to create 74 deed-restricted affordable homes throughout the city.
According to the city, the funding is expected to leverage more than $154 million in total development investment. The projects include new construction, adaptive reuse, public housing redevelopment and neighborhood-scale infill housing serving households earning between 30% and 80% of the Area Median Income.
“These awards reflect the Affordable Housing Trust Fund’s continued commitment to investing in projects that increase Worcester’s supply of affordable housing while leveraging significant public and private investment,” City Manager Eric Batista said in a statement. “This funding supports projects at a variety of scales, from transformative neighborhood redevelopment efforts to smaller infill developments, helping ensure Worcester residents have access to safe, high-quality, affordable homes.”
The largest award, $600,000, supports the third phase of the redevelopment of the Worcester Housing Authority’s Lakeside Apartments. The project, led by Lakeside Developer LLC—a joint venture between Tremont Development Partners and E3 Development —constructs a four-story building with 103 apartments, including 38 net new affordable homes. The redevelopment is part of a long-term effort to transform the aging Lakeside public housing community into a mixed-income neighborhood with approximately 350 rental and homeownership units.
The second-largest award, $585,632, helps finance the adaptive reuse of the historic Heywood Boot & Shoe Company Building at 70 Winter St. in the Canal District. The Beantown Companies plans to convert the vacant 1879 mill building into 77 mixed-income apartments with ground-floor commercial space. Fifteen apartments will be income-restricted, including five affordable units supported directly through the Affordable Housing Trust Fund.
The board also approved $100,000 for the third phase of the Colony on Grove redevelopment, which replaces 24 aging senior apartments with 52 newly constructed affordable senior apartments, resulting in 28 net new affordable homes. The development includes six fully accessible units, Passive House design and permanent affordability restrictions.
The fourth award, $72,730, supports South Worcester Urban Infill Housing, a project by ABG Real Estate LLC that creates three affordable rental homes across two South Worcester properties. The project includes a two-family home and an accessory dwelling unit designed as all-electric, energy-efficient housing.
The city said all four projects are subject to long-term affordability restrictions and must meet Affordable Housing Trust Fund underwriting, legal and closing requirements before funding agreements are finalized.
The Affordable Housing Trust Fund uses Community Preservation Act funding previously appropriated by the Community Preservation Committee and city council to help expand affordable housing through partnerships with public and private developers.
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