Worcester awards $1.35 million for 74 affordable homes

Worcester’s Affordable Housing Trust Fund Board approved $1,358,362 in Community Preservation Act funding on July 16, 2026, for four developments expected to create 74 deed-restricted affordable homes across the city, according to a City of Worcester announcement.

The city estimates the awards could help leverage more than $154 million in total development investment. The planned homes are intended for households earning between 30% and 80% of area median income, although the projects address different housing needs and the funding agreements are not yet complete.

Four projects, four housing strategies

The largest award, $600,000, will support Phase 3 of the Lakeside Apartments redevelopment. The Worcester Housing Authority project is part of a broader effort to replace an aging public-housing community with a mixed-income neighborhood. The authority’s redevelopment materials describe Phase 3 as planned to include 103 apartments, including 38 net new affordable homes, with units targeted to households at several income levels.

A $585,632 award will support the adaptive reuse of the historic Heywood Boot & Shoe Company Building at 70 Winter Street in Worcester’s Canal District. The vacant 1879 mill building is planned for conversion into 77 mixed-income rental apartments and ground-floor commercial space. Fifteen apartments are expected to be income-restricted, including five affordable units supported directly through the trust fund.

The Colony on Grove senior-housing redevelopment received $100,000. The project is planned to replace 24 aging apartments with 52 newly constructed affordable senior apartments, including 28 net new affordable homes. City materials also describe accessible and adaptable units and affordability that would extend in perpetuity.

The South Worcester Urban Infill Housing project received $72,730. Led by ABG Real Estate LLC, the project is planned to create three affordable rental homes across two properties, including a two-family building and an accessory dwelling unit.

What deed-restricted means

Deed restrictions are legal requirements that keep designated homes affordable for qualifying households for a specified period. Worcester’s 2026 CPA housing application materials say trust-funded units must carry affordability restrictions for at least 30 years, with additional priority for projects that preserve affordability permanently.

That means the awards are intended to create long-term affordable housing rather than short-term discounts. They do not mean that 74 apartments are available now, and the city has not announced application dates, rents or move-in schedules for these projects.

Funding is approved, but projects still have steps to clear

The city said each development must satisfy Affordable Housing Trust Fund underwriting, legal review and closing requirements before funding agreements are executed. The awards therefore represent approved public funding for planned projects, not completed financing or a guarantee that all 74 homes will be delivered on a set schedule.

For Worcester residents, the funding round shows how the city is using CPA dollars across several housing approaches: public-housing redevelopment, historic-building reuse, senior housing and smaller neighborhood infill. The next important updates will be whether the projects complete their remaining financing and legal requirements and move toward construction.

Sources

• City of Worcester housing award announcement
• Worcester Housing Authority Lakeside redevelopment presentation