A mixed-use housing project in Salem is the recipient of $4.5 million in loans and $1.5 million in low-income housing tax credits for a multi-phase, transit-oriented, green revitalization initiative.

The first phase of the project is a new four-story building, expected to generate 101 jobs and bring 51 units of housing to the city. The new structure at the site of the former St. Joseph parish will include 4,400 square feet of neighborhood retail space on the first floor, expanding Lafayette Street’s commercial base and reinvigorating the streetscape for local residents, according to a statement. Space will also be made available to community and nonprofit organizations to be used for job readiness, computer training and meetings.

"Gov. Patrick and I are proud to award state funds to a stand-out project that exemplifies our efforts to strengthen communities and create jobs across the commonwealth," said Tina Brooks, undersecretary of the Department of Housing and Community Development. "We applaud the city of Salem and the Planning Office for their vision and commitment to creating affordable housing."

With nearby service from the MBTA bus, commuter rail and commuter ferry services, and within close proximity to a broad array of residential, educational and employment opportunities, the site is positioned in a transit-rich area with significant amenities and will incorporate many of the commonwealth’s sustainable development principles, according to a statement.

"Thanks to the dedication of the Planning Office and their collaboration with our city and commonwealth over the past six years, we are one step further in the revitalization of this important neighborhood," said Salem Mayor Kimberley Driscoll. "This development will address the need for high-quality, affordable workforce housing, and has the potential to be both a resource center for our community and an important economic contributor to our city."

The Planning Office expects construction to start in the fall and the first phase of the redevelopment to be completed by the end of 2012.