Holyoke's City Council voted unanimously to transfer three surplus city-owned properties for just $1 to the Holyoke Redevelopment Authority, a move that clears a major hurdle for a proposed 115-unit affordable housing development on the upper block of Newton Street near Essex Street. The parcels, declared surplus back in 2012, are folded into the city's official urban renewal plan, and their transfer strengthens a partnership between the Redevelopment Authority and non-profit developer Way Finders to reshape a stretch of downtown that already anchors much of the city's housing strategy.
According to MassLive, the proposal moved forward to the full City Council after a subcommittee recommended the transfer in August. Way Finders already owns roughly two-thirds of the Newton Street block, including nine properties there along with the former KeyBank building and several nearby structures. Holyoke's director of planning and economic development, Eric Nakajima, said acquiring the additional city-owned parcels would strengthen Way Finders' plans for the site.
“Residents of the permanently affordable housing should benefit from it,” Nakajima said, according to the same report, underscoring that the units are intended as permanently affordable subsidized housing rather than a temporary designation. Councilor Israel Rivera, who supported the development, said he wanted current Newton Street residents to have opportunities to benefit from the project rather than being displaced by it. Councilor Patti Devine also backed the proposal, and Richard Purcell said the project could possibly be completed through a three-year plan.
A Development Built on Way Finders' Downtown Track Record
Way Finders is the largest non-profit affordable housing developer in Western Massachusetts, having constructed and managed more than 800 residential units across the region under President and CEO Keith Fairey, who has led the organization since July 2020, according to Way Finders. The nonprofit is no stranger to Holyoke's downtown: in 2021 it completed the $23 million Library Commons development nearby, combining the gut rehabilitation of three historic buildings with new construction to create 38 affordable family units and community space.
Just last October, Way Finders broke ground on Essex Village, a $28 million development in Holyoke's Churchill neighborhood that will create 41 affordable rental units across four nearby sites, including the restoration of a historic 1888 brick building, as reported by The Reminder. The scale of local need became stark this past June, when more than 2,700 applicants registered for just 41 available units in Essex Village's housing lottery, a demand level that helps explain why officials are pushing to assemble land for a project more than twice that size on Newton Street.
Design Still Taking Shape Amid Aging Infrastructure
Way Finders is considering a design with entrances on both High and Newton streets for the proposed development, which could create more than 115 affordable housing units in total. Officials say infrastructure upgrades will be needed because many of the water, sewer and gas systems in the area are aging, and Holyoke is completing an infrastructure analysis with engineering firm Tighe & Bond to assess what improvements the site will require.
The city is seeking state support for both the housing project itself and the surrounding infrastructure work. That effort follows the Massachusetts Legislature's 2024 housing bond bill, which included a $1.5 million state capital authorization specifically allocated to Way Finders for multi-phase housing developments along South High Street in Holyoke. Holyoke is also pursuing additional grant funding for future improvements in the corridor.
Part of a Broader Push Along Maple and High Streets
The Newton Street project is part of a broader effort that includes planned developments on Maple and High streets, tying the residential push to the city's long-term downtown strategy. The Massachusetts Department of Transportation has separately programmed a $16 million corridor improvement project along High and Maple streets for fiscal years 2029 through 2030, focused on safety, mobility and streetscape modernization, positioning the residential investment alongside future infrastructure work in the same downtown footprint.
Mayor Joshua A. Garcia has created an interdepartmental working group focused on the Newton Street corridor, reflecting the city's intent to coordinate planning across departments rather than treat the project as an isolated land transfer. City officials say the development effort aims to revitalize Newton Street while supporting current residents, and they plan to involve residents and property owners in future redevelopment planning. Acquisition of the city-owned parcels would also help Way Finders pursue low-income housing tax credits and other funding sources needed to finance construction.
Weighing New Units Against an Already High Housing Rate
Holyoke's push for more subsidized units comes even though the city already exceeds state affordability requirements by a wide margin. Under Massachusetts General Law Chapter 40B, municipalities must maintain at least 10% of their year-round housing stock as affordable housing, but Holyoke's subsidized housing inventory stood at 19.34% as of September 2025, according to data from the Massachusetts Executive Office of Housing and Livable Communities.
That statistic sits alongside stark local economic figures: Holyoke's median household income was $53,605 as of the latest American Community Survey estimates, compared with a national median of $80,734, with inner-city downtown neighborhoods reporting even lower earnings. Officials are also exploring support for homeowners and renters beyond the new construction itself, including potential funding for home repairs and efforts to rehabilitate existing rental housing in the surrounding blocks.
