Image courtesy of ICON Architecture

A partnership between Boston-based Trinity Financial and East Boston Community Development Corp. has begun construction of the third and final phase of the Overlook Terrace at Orient Heights project, modernizing the East Boston public housing complex.

The latest work will replace and update 123 units with financing provided by a mix of public and private sources.

The first phase, completed in 2018, replaced 120 units of public housing and was certified as LEED Platinum. Another 88 units were replaced with apartment- and townhouse-style homes, attaining LEED Gold certification upon completion in 2020.

Acting Mayor Kim Janey has allocated $19 million in Boston’s fiscal 2022 capital plan for the latest phase, while the state is providing $17.5 million and low-income housing tax credits. Additional investments were provided by Citizens Bank, RBC Community Investments, MassHousing and the George B. Henderson Foundation.

“Phase three will mark completion of this historic initiative to provide a first-rate living experience to more than 300 families in public housing,” Janey said at a groundbreaking ceremony this week.

Planning for the updates to the 1950s-era public housing complex began in 2008. In 2015, the Boston Housing Authority selected Trinity Financial and East Boston CDC to lead the redevelopment and pursue financing. The two groups will own and manage the buildings, which are leased from the BHA.