A planned senior housing development on Augusta’s east side got a recent financial boost thanks to a $500,000 Community Development Block Grant.

The Malta Street Housing project, which will bring 34 new affordable housing units to the city, is set to be built on the vacant lot behind the Hodgkins School Apartments.

“We are thrilled to receive this grant, which will enable us to provide much needed affordable housing for our senior residents,” Keith Luke, Augusta’s economic development director, said in a city press release. “This project will not only enhance the quality of life for our seniors but also contribute to the overall vitality and inclusiveness of our community.”

Earlier this month, City Council approved a lease extension for the land to keep the Augusta Housing project moving forward. In total, the project is expected to cost $11 million.

Data from MaineHousing shows that Augusta needs 873 additional affordable units to meet demand, with 424 of those designated as senior housing.

The units for those 55 and older would be for those earning 60% or less of the area median income, which is $36,540 for a one-person household.

If all goes as planned, the project will break ground in 2025 and potentially be ready for tenants a little over a year later, Norman Maze, Augusta Housing executive director, told Spectrum News June 4.

The building will be three stories and include 32 one-bedroom apartments and two studio units.

The housing authority also has 32 family workforce housing units under construction on land formerly used by Statler Tissue. In addition, they are hoping to partner with a developer to turn the former Union Street police station into affordable housing.

The Malta Street project is located near recreational fields, walking trails, grocery stores and pharmacies, making it an ideal location for additional housing, city officials said.

“We look forward to seeing the positive impact this development will have on the community,” said Haley Gauvin, the city’s communications director. “The City of Augusta recognizes the importance of supporting its senior residents and is committed to ensuring they have access to safe, affordable housing.”