Phase One of the Old Colony public housing redevelopment in South Boston has received a $26.7 million construction loan from MassHousing.

Boston’s Beacon Communities is developing the first phase of the Old Colony project, which will replace seven distressed and blighted apartment buildings with 116 new apartments for low-income families in one mid-rise building and four clusters of town homes, according to a statement. Phase One also includes the construction of a new 10,000-square-foot community center.

"This is an important step in the transformation of Old Colony into modern, energy efficient housing for its residents," said MassHousing Executive Director Thomas R. Gleason.

Phase One will be designed and constructed in accordance with Enterprise Green Building Criteria, LEED criteria, EPA’s Energy Star and HUD Healthy Homes Guidelines. The Boston Housing Authority hopes to redevelop the entire Old Colony site over the next 10 to 15 years with the goal of creating as close to a net-zero energy community as possible, according to a statement.

"MassHousing’s investment is invaluable to this important redevelopment effort," said Boston Mayor Thomas M. Menino. "I’m pleased that we will be able to offer the residents at Old Colony a chance to live in green and healthy housing."

The contractor for the project will be Boston-based Suffolk Construction; the architect will be the Chelsea-based Architectural Team Inc. and Beacon Concepts; and the management agent will be Boston-based Beacon Residential Management.