The Old Colony public housing development in South Boston has received more than $22 million in redevelopment funding from the U.S. Department of Housing and Urban Development (HUD), according to Mayor Thomas M. Menino.

A public-private partnership to transform the Old Colony site is expected to generate $60 million in redevelopment funds for phase one. Up to 150 new units of housing and a new community center will be built in the first phase, according to officials.

"This is great news for the residents of Old Colony and for the entire South Boston community," said Menino. "It is our plan to create a state-of-the-art green community that is architecturally integrated into the larger community."

Funding from the American Recovery and Reinvestment Act (ARRA) will fund "green" public housing transformation projects across the country. The Boston Housing Authority (BHA) submitted its grant proposal in July and received the largest grant award among 36 other recipients.

"The residents of Old Colony have waited a long time for this redevelopment opportunity," said Bill McGonagle, BHA’s interim administrator. "Residents badly need and deserve this chance to improve the conditions in the neighborhood they call home."

Built in 1940, the Old Colony development is currently the most physically distressed site in the BHA’s federal portfolio, according to a statement, with aged systems and infrastructure and an annual energy and water cost of more than $4,000 per unit. The site is one of the largest in the BHA’s portfolio and is comprised of more than 16 acres, with 873 apartments in 22 three-story, brick walk-up buildings.

Green building and energy efficient measures will be a major emphasis in the redevelopment, according to a statement.

Construction of this phase is expected to begin in late fall of 2010 and is expected to be completed by summer of 2012.