HDC MidAtlantic broke ground Wednesday for The Apartments at College Avenue, an affordable housing complex in west Lancaster across from the former St. Joseph Hospital campus.
"We are ecstatic and it's great relief. It has been quiet a journey getting this project off the ground," said Dana Hanchin, HDC's president and CEO.
The building will have 64 one- and two-bedroom apartments, of which a dozen will be fully handicap-accessible. The $23 million project is expected to be complete in spring of 2025 and will serve low-income households earning between $10,000 and $45,000.
"This is what we need to do again and again," said state Rep. Mike Sturla, D-Lancaster. Statewide, Pennsylvania has a shortage of 235,000 affordable housing units, he said.
The Apartments at College Avenue represent the first of several phases that HDC is planning in the area. It is planning to redevelop the Delp Wing of the former St. Joseph's hospital into affordable housing in conjunction with Washington Equity's plans to develop housing on the remainder of the campus.
HDC also is looking to build affordable housing in the 800 block of Marietta Avenue across from the campus' south side.
HDC had hoped to start construction on the Apartments at College Avenue as early as 2022, but encountered a variety of delays, including a legal battle with neighbors. The nonprofit also needed to secure additional financing due to cost increases arising from the pandemic and other factors: The $23 million budget is half again as large as the initial estimates of $15.4 million.
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