A $40 million redevelopment project is coming to Delaware Avenue in Buffalo.

TM Montante Development is working with Belmont Housing Resources for Western New York to turn the former Gates Circle Homeopathic Hospital into 110 housing units.

Seventy of them will only be able to be rented by people who make 60 – 90% of the area’s median volume.

"This collaboration provides a great opportunity to expand upon our commitment to providing affordable housing throughout Western New York and will complement our diverse portfolio of managing housing complexes for seniors, those with disabilities and families,” said Brad Packard, executive vice president of Belmont Housing Resources for WNY, said. "This development will adhere to our core values as an organization that promotes inclusiveness, prioritizes integrity and provides exceptional customer service, especially given the unprecedented rise in the cost of living and in particular the cost of housing, we believe this project will bring much needed affordable housing options for families in the city of Buffalo."

This development will create 15,000 square feet of new commercial space as well.

This project is part of a larger $150 million project known as Lancaster Square at Gates Circle.

"This plan represents a significant milestone for Lancaster Square at Gates Circle. It will bring new life to the original hospital buildings, which has been priority for us and the community,” said TM Montante Development President Chris Campos. "The redevelopment will also further our vision of creating a diverse community at the heart of one of Buffalo’s most iconic neighborhoods."