State agencies began construction Tuesday on 138 new apartments in Mount Hope.

Together they will form three new buildings aimed at providing more affordable housing on East 178th Street.

The $65 million project includes 30 units set aside for people who were formerly homeless. Those tenants will pay rent of just $200 a month.

For the rest of the apartments, 10 percent will house people making 90 percent of the area's median income, and the rest will become homes for people making just 60 percent of the median income.

Officials say construction will take two years.