Proceeds from the sale of the Winthrop Center garage and inclusionary development payments from developers helped pay for the second phase of the Overlook Terrace at Orient Heights public housing redevelopment in East Boston.

A virtual ribbon-cutting on Thursday marked completion of the latest phase, which demolished 87 public housing units in four buildings and constructed 88 apartment and townhouse-style rental units. Boston-based Trinity Financial and East Boston Community Development Corp. partnered on the recent phase, which includes new open space and play areas and energy-efficiency upgrades.

The $51.2-million first phase, completed in 2018, included 120 units of replacement housing funded by federal low-income tax credits, tax-exempt bonds for construction financing, and capital funding from the Boston Housing Authority and the state Department of Housing and Community Development.

The city of Boston contributed $10 million to the latest phase including proceeds from the sale of the Winthrop Square garage and inclusionary development policy funds paid by developers of projects in East Boston. Additional funding was provided by the BHA, CHCD, MassWorks, MassHousing, RBC Capital Markets and Citizens Bank.

Mayor Marty Walsh has committed $19 million in the city’s fiscal 2022 capital plan toward phase three, which would replace and modernize the remaining 123 units.