In a first-of-its-kind transaction, Massachusetts will use the public-private Momentum Fund to finance the construction of the Residences at East Milton, creating nearly 100 new affordable and mixed-income residences at the site of an underused commercial property.

“We know that to meet our housing production goals and drive down costs for everyone, we need to build more housing at all income levels,” Lieutenant Governor Kim Driscoll said in a press release. “The Momentum Fund is a transformative opportunity to increase the development of mixed-income, multifamily housing.”

Under the Affordable Homes Act, the Momentum Fund aims to create new housing quickly by leveraging low-cost capital and partnering with private developers to incentivize already permitted housing construction.

For the Residences at East Milton, the Massachusetts Housing Finance Agency committed $5 million in Momentum Equity funding. Additional development sponsors included Joseph J. Corcoran Company and Falconi Properties.

Once completed, the Residences at East Milton will provide a total of 92 mixed-income rental homes, including 23 affordable rental homes. The project will also revitalize East Milton Square through improvements like streetscapes.

“We passed the $5 billion Affordable Homes Act to increase the production of reasonably priced housing across the state,” said Governor Maura Healey. “We are excited to announce this major milestone in its implementation today — a public-private partnership that will create hundreds of new homes for folks of all income levels. We look forward to continuing to expand the impact of the Momentum Fund to lower the cost of housing across the state.”