City of Worcester, MA

WORCESTER, Mass. – The City of Worcester Affordable Housing Trust Fund (AHTF) Board of Trustees has approved $1,358,362 in Community Preservation Act (CPA) funding to support four affordable housing developments that will create 74 deed-restricted affordable homes throughout the city.

The awards, approved during the AHTF’s Spring 2026 funding round, will leverage more than $154 million in total development investment while advancing the municipality’s commitment to expanding high-quality, affordable housing for Worcester residents. Collectively, the funded projects include new construction, adaptive reuse, public housing redevelopment, and neighborhood-scale infill housing serving households with incomes ranging from 30% to 80% of Area Median Income (AMI).

“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,” said City Manager Eric D. Batista. “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.”

Spring 2026 Affordable Housing Trust Fund Awards

Lakeside Apartments – Phase 3

Award: $600,000

The largest award supports Phase 3 of the redevelopment of the Worcester Housing Authority’s Lakeside Apartments. Led by Lakeside Developer LLC, a joint venture between Tremont Development Partners and E3 Development, the project will construct a new four-story building containing 103 apartments, including 38 net new affordable homes. The redevelopment is part of the long-term transformation of the aging Lakeside public housing community into a modern mixed-income neighborhood with approximately 350 rental and homeownership units. Phase 3 includes homes affordable to households earning 30%, 50%, and 60% of AMI, along with 11 accessible units, community amenities, and significant open space.

Heywood Boot & Shoe Company Building – 70 Winter Street

Award: $585,632

Funding will support the adaptive reuse of the historic Heywood Boot & Shoe Company Building in Worcester's Canal District. The project, sponsored by The Beantown Companies, will convert the vacant 1879 mill building into 77 mixed-income rental apartments with approximately 3,691 square feet of ground-floor commercial space. Fifteen apartments will be income-restricted, including five affordable units supported directly through the Affordable Housing Trust Fund, while preserving an important historic structure and contributing to continued investment in the Canal District.

Colony on Grove – Phase III

Award: $100,000

Colony on Grove Phase III continues the multi-phase redevelopment of Colony Retirement Homes’ senior housing campus. This phase will replace 24 aging apartments with 52 newly constructed affordable senior apartments, creating six fully accessible units and 28 net new affordable homes. Every apartment will be income-restricted, and the development will include Passive House design, accessible and adaptable units, and affordability extending in perpetuity.

South Worcester Urban Infill Housing

Award: $72,730

The award will support a neighborhood-scale infill development by ABG Real Estate LLC. The project will create three affordable rental homes across two south Worcester properties, including a two-family building and an accessory dwelling unit. Designed as all-electric, energy-efficient homes, the project demonstrates how smaller developments can contribute to Worcester’s affordable housing goals while expanding housing choices within existing neighborhoods.

The Spring 2026 funding round utilized Community Preservation Act funding previously appropriated by the Community Preservation Committee and City Council for affordable housing. All funded projects will be subject to long-term affordability restrictions and must satisfy Affordable Housing Trust Fund underwriting, legal, and closing requirements prior to execution of funding agreements.

Since its establishment, the Affordable Housing Trust Fund has become one of the municipality’s primary tools for expanding affordable housing opportunities through strategic investments that leverage substantial additional funding from state, federal, local, and private sources.

For more information about the City of Worcester’s Affordable Housing Trust Fund, visit: www.worcesterma.gov/housing-neighborhood-development/affordable-housing-trust-fund