Construction of the Temple Place Apartments containing 40 units of low- and moderate-income housing has begun in Cambridge’s Central Square.

The Temple Street property was the site of numerous development proposals for decades before the current sponsors were able to obtain $11 million in financing and conclude a lengthy legal battle. Cambridge Housing Authority obtained financing from 13 public and private partners and leases the property from the property owner YWCA.

CHA secured 9 percent low-income housing tax credits from the Massachusetts Department of Housing and Community Development. The financing partners included Federal Home Savings Bank and East Cambridge Savings Bank.

"Our funding partners didn’t need to hang in there with us through a prolonged lawsuit. When they did, the message was clear they were intent to see it through. It was a big edge for us to have the funding partners standing firm," Gregory Russ, executive director of the CHA, said in a statement.

The project was designed by Cambridge-based HMFH architects to achieve Enterprise Green Communities Certification and to reduce energy costs and environmental impacts through sustainable design and materials.

"This proved to be the right project in the right location at the right time," said Lori Cowles AIA, principal with HMFH Architects and a longtime Cambridge resident.

Construction is expected to conclude in 2015.