Massachusetts Housing Investment Corp. (MHIC) has closed a $3.5 million equity investment for the new construction of 23 units of affordable housing on Moody Street in Lowell.

The new building, to be called Unity Place, is being developed by the Coalition for a Better Acre. It will be located on a vacant parcel of land formerly occupied by two abandoned and deteriorating buildings that have been demolished.

The new four-story building will provide affordable housing to low and very-low income households. Six units will be service-enriched and made available to homeless families. Construction is under way and is expected to be completed in October 2011.

Earlier this year, MHIC provided a $4 million equity investment for CBA’s renovation of the former St. Joseph’s High School into 22 affordable rental apartments. The project is currently under construction and will be completed in December.

These newest projects are part of a comprehensive redevelopment of the Upper Merrimack Neighborhood that CBA, in partnership with private and public funders, has undertaken over the past decade, leveraging over $42.2 million in investment since 2002.

For Unity Place, financing was also provided by the city of Lowell, the state Department of Housing and Community Development, Enterprise Bank and the MHP Fund.