Councilors voted Aug.18 in favor of a tax increment financing district for a low-income housing project proposed for the old Public Works site at 116 Congress St.

The district is necessary for Developers Collaborative to secure housing tax credits through the state for a low-income development.

It will generate $2,664,900 over its 30-year life, according to Economic Development Director Thomas Kittredge. Half of the TIF funds will go toward the housing development and the other half will be used for infrastructure improvements in the city and a loan program for future low-income developments. The housing site is the only property in the TIF district.

Developers Collaborative’s state application is due Sept. 24, so the district had to be created 30 days before that date, by Aug. 24, according to Kittredge.

The development, which the council has been discussing for 10 years, faced some opposition at the city’s July 28 listening session. Some residents were concerned that low-income housing would increase crime in the neighborhood. Other residents expressed support for the project and said it was a necessary response to the city’s rising rent costs.

The city granted Developers Collaborative an option to buy the property for the cost of site cleanup, Kittredge said in a previous interview with The Republican Journal. Councilors decided not to issue a request for proposals for other property uses because they have a vision for the property as affordable housing and have previously worked with Developers Collaborative, he said.

The company is developing an income-based senior housing project on Wight Street. Developer’s Collaborative Founding Principal Kevin Bunker said the company will address traffic concerns once its application is before the Planning Board.