By Whats Up Worcester Staff
WORCESTER, MA — Four housing developments in Worcester will receive a combined $1,358,362 in local funding to support the creation of 74 deed-restricted affordable homes across several parts of the city.
The Worcester Affordable Housing Trust Fund Board of Trustees approved the awards during its Spring 2026 funding round. The money comes from the Community Preservation Act, a state law that allows participating communities to raise and distribute funds for affordable housing, historic preservation, open space and recreation.
According to the City of Worcester, the four projects represent more than $154 million in total development investment. They include new construction, the reuse of a vacant historic building, the redevelopment of public housing and smaller-scale housing built within established neighborhoods.
The affordable homes will serve households earning between 30% and 80% of Area Median Income, commonly called AMI. AMI is a regional income measure used to determine eligibility for income-restricted housing. The exact income limits depend on household size and are updated periodically.
Lakeside Apartments receives largest award
The largest award, $600,000, will support the third phase of the redevelopment of Lakeside Apartments, a Worcester Housing Authority property.
Lakeside Developer LLC, a partnership involving Tremont Development Partners and E3 Development, plans to construct a four-story building with 103 apartments. The phase is expected to add 38 net new affordable homes, including units for households earning 30%, 50% and 60% of AMI. Plans also include 11 accessible units, community amenities and open space.
The project is part of a longer-term plan to replace the aging public housing complex with a mixed-income neighborhood containing approximately 350 rental and homeownership units.
Historic Canal District building planned for housing
The Affordable Housing Trust Fund awarded $585,632 toward the adaptive reuse of the former Heywood Boot & Shoe Company Building at 70 Winter St.
The Beantown Companies plans to convert the vacant building, which dates to 1879, into 77 mixed-income rental apartments and approximately 3,691 square feet of commercial space on the ground floor.
Fifteen apartments are expected to be income-restricted. Five of those affordable units will be supported directly through the trust fund award. The project would also preserve a historic Canal District property while returning a vacant building to active use.
Senior housing expansion planned on Grove Street
Colony on Grove Phase III will receive $100,000.
The project will replace 24 aging apartments at the Colony Retirement Homes senior housing campus with 52 newly constructed affordable apartments for older adults. The development is expected to produce 28 net new affordable homes and include six fully accessible units.
All 52 apartments will be income-restricted, according to the city. The development is also planned to meet Passive House standards, which are intended to reduce energy use through efficient building design and construction. The affordability restrictions are expected to remain in place permanently.
Smaller development planned in South Worcester
The South Worcester Urban Infill Housing project will receive $72,730.
ABG Real Estate LLC plans to create three affordable rental homes across two properties in South Worcester. The development will include a two-family building and an accessory dwelling unit.
An accessory dwelling unit is a smaller independent home located on the same property as a primary residence. The city said the three homes will be all-electric and designed for energy efficiency.
The South Worcester project shows how smaller developments can add affordable homes within existing neighborhoods, while the other awards support projects with dozens of apartments.
What happens next
The awards do not mean construction will begin immediately. Each development must complete the Affordable Housing Trust Fund’s financial review, legal process and closing requirements before a funding agreement can be executed.
All four projects will also be subject to long-term affordability restrictions. The source material does not provide construction start dates, expected completion dates or information about when residents may apply for the apartments.
Residents can learn more about the program through the City of Worcester’s Affordable Housing Trust Fund page. Separate application and eligibility information is expected to come from the property owners or housing managers as each development moves closer to completion.
🔎 W.U.W. Verification Box
• Project / Topic: Spring 2026 Worcester Affordable Housing Trust Fund awards supporting four housing developments.
• Current Status: The Board of Trustees has approved $1,358,362 in Community Preservation Act funding. The projects must still complete underwriting, legal and closing requirements before funding agreements are executed.
• Key Dates or Decisions: The awards were announced by the City of Worcester on July 16, 2026, following approval during the trust fund’s Spring 2026 funding round.
• Estimated Cost: The trust fund awards total $1,358,362. The city reported that the four developments represent more than $154 million in total development investment.
• Timeline: The source material does not provide construction start dates, completion dates or tenant application periods.
• Immediate Next Steps: Each project must satisfy the Affordable Housing Trust Fund’s financial review, legal and closing requirements and execute a funding agreement.
• Primary Sources: City of Worcester Office of the City Manager and the City of Worcester Affordable Housing Trust Fund.
• What We Do Not Yet Know: The city has not released construction schedules, completion dates, rental prices, application procedures or tenant selection timelines for the four developments.
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