MassHousing on Monday announced $44.6 million in financing for six new homeownership development projects across the state, including two in Dorchester and one in Mattapan. The local projects are 120-122 Hancock St. in Dorchester, 270 Talbot Ave. in Dorchester, and the Preserve at Olmsted Green in Mattapan, a large project on the site of a former state hospital property.

The funding, through the agency’s CommonWealth Builder Program, is intended to assist moderate-income, first-time homebuyers in communities of color by subsidizing the production of homes restricted to homebuyers with incomes between 70 percent to 120 percent of their area median income (AMI).

Since its launch in 2021, MassHousing has committed a total of $68.7 million to 14 CommonWealth Builder projects across Massachusetts.
Across the nation, approximately 46 percent of households occupied by people of color are under their ownership, compared to just 34 percent in Massachusetts, according to MassHousing.

The project at 120-122 Hancock St., will receive $2.35 million in financing for Urbanica to turn 2 vacant lots into 15 homeownership units in a 4-story building. There will be 3 one-bedroom homes and 12 two-bedroom homes. Three of the homes will be handicapped accessible. All the homes will be affordable and sold to first-time homebuyers. The Mayor’s Office of Housing (MOH) is also providing $2.25 million in financing to the project and Leader Bank is providing $3.9 million in construction financing.

The project at 270 Talbot Ave., will receive $4.7 million in financing through MassHousing to assist TLee Development in redeveloping two parcels, demolishing former car repair garages, and landscaping storage space. A 4-story building will rise on the site with 18 affordable homeownership units for moderate-income homebuyers.

In Mattapan, the 8 Preserve at Olmsted Green will get $7.7 in MassHousing financing to assist New Boston Fund and Lena Park CDC in a project that will result in 80 new units of homes for people with a range of incomes.

Other financing sources include $5.1 million from Boston’s MOH, $21 million in construction financing from Eastern Bank, $6 million in financing from BlueHub Capital, $1.8 million in developer equity, and $750,000 from Boston’s Neighborhood Housing Trust Fund.

The project represents the final phase of the redevelopment of the former state hospital property in Mattapan that began in 2006.