The project will also receive additional funding from the Department of Housing and Community Development for low-income units.   

Under the statewide initiative, 1,000 new units of affordable housing for middle income households would be created. Up to $100,000 in subsidies will be provided for each unit. New construction or refinancing of an existing housing community would qualify for creation of the units.

To do this, the Baker administration is working with MassHousing, a quasi-public agency charged with providing affordable housing in the state.

Tim Sullivan, MassHousing’s executive director, said the initiative protects working families.

“Many middle-income families simply cannot afford market rate housing,” he said.

Those families feel the pain of annual rent increases, which have increased as much as 13 percent since 2010, Sullivan added. He said the infusion of cash is changing the way housing is looked at.

“The program is to help middle income people who are being squeezed out of the housing market,” said Michael Dirrane, MassHousing’s board chairman.

Peggy Phelps, director of planning and development for Lynn Housing Authority & Neighborhood Development, said being the first recipient of the fund is evidence that Lynn is being recognized for its efforts to create more affordable units.

“It’s going to be a really great mixed income building,” she said.

Gateway Residences will feature a five-story, wood-frame building with 18 one-bedroom units, 46 two-bedrooms and seven three-bedrooms. Eight units will market-rate. The project also will contain a common room, fitness center, laundry rooms and other common tenant spaces.

Construction is set to begin on Gateway this summer and tenants are expected to move in by the year’s end.

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Gayla Cawley can be reached at gcawley@itemlive.com. Follow her on Twitter @GaylaCawley

May 12, 2016newsLynn, NewsDepartment of Housing and Community Development, Gateway Residences on Washington, Gayla Cawley, Gov. Charlie Baker, Lynn, Lynn Housing Authority & Neighborhood Development,MassHousing, MassHousing’s executive director, Michael Dirrane, Peggy Phelps, Tim Sullivan, Washington Street

May 12, 2016newsLynn, NewsArthur Pappathanasi, Beacon Chevrolet, Economic Development and Industrial Corp, Environmental Secretary Matthew Beaton, James Cowdell, Louis Minicucci Jr., Lynn, Lynn Development LLC,Lynn Economic Advancement and Development team, THOMAS GRILLO, Transportation Secretary Stephanie Pollack, U.S. Rep. Seth Moulton