Lowell-headquartered Common Ground Development Corp. will build a new affordable housing development in Westford using a $6.3 million loan from Citizens Bank.

The rental construction loan for SB2 Housing LP will finance the construction of seven multifamily buildings containing 36 affordable units on a single site next to Phase 1, which was completed in 2010.

The financing package also included $5 million in Low Income Housing Tax Credit equity, $1.7 million in state funding, $400,000 in town funding and a permanent loan through Massachusetts Housing Partnership, Citizens’ One Source financing partner.

“Common Ground Development is an excellent client and partner,” Jerry Sargent, president of Citizens Bank in Massachusetts, said in a statement. “We are pleased to be part of this important development and to help the Common Ground Development team achieve their strategic goals.”

Formed in 2002, Common Ground develops and manages affordable rental and homeownership housing within the 24 Merrimack Valley communities of Massachusetts.

“Community Teamwork and Common Ground highly value the partnership with Citizens Bank on this project that will help us further our goals to provide affordable housing and fulfill our mission to help our clients become and remain self-sufficient,” Bill Lipchitz, director of real estate operations for both organizations, said in a statement.