AMHERST — A historic home at the edge of Amherst center, just steps from the Jones Library, is being converted into three affordable townhouses, with an undeveloped portion of the half-acre site at 174 Amity St. to become a Habitat for Humanity duplex.

The Amherst Community Land Trust, which expects to close on the property by the end of July so it can move forward with the development, is in the midst of completing the necessary permitting, recently receiving a favorable determination from the Zoning Board of Appeals that the townhouse and duplex uses are complementary.

Seeking site plan review from the Planning Board at its July 1 meeting, Amherst attorney Felicity Hardee explained that the project is compatible with town zoning, as a similar arrangement already exists nearby on North Prospect Street.

Hardee also elaborated on what the trust is trying to accomplish.

“One of the central goals of Amherst Community Land Trust is to develop community, both in the broader sense in Amherst, but also among the owners who are benefited by the program that we are offering,” Hardee said.

The trust will hold title to the land while residents owns their homes through an inexpensive long-term lease for the land. The units in the townhouse will be affordable to persons earning up to 80% of the area median income, while Habitat will try to make the two units in its building affordable for those earning up to 60% of the area median income, Hardee said.

Built around 1830, the Greek Revival-style home was owned for much of the 20th century by Eleanor and Laurence Grose. Eleanor Grose, who died in 1972, ran a nursery school from the home until her death and founded The Alcott School in 1925. Laurence Grose taught forestry at Massachusetts Agricultural College.

Since the 1970s, the house has been leased for low rental rates to artists, musicians and young professionals, including employees of the Amherst public schools.

The Amherst Community Land Trust is acquiring the property from the Groses’ grandchildren for $475,000. The property is assessed at $1.13 million, according to Amherst property tax records.

The trust was founded in 2014 and over its 12 years has facilitated buying eight homes in Amherst, all of which are to be affordable in perpetuity.

Two sources of town funding are supporting the development, with $450,000 from the Community Preservation Act account for the three townhouses, and $300,000 from the Municipal Affordable Housing Trust for the acquisition.

The trust also received $375,000 from the state’s Community Investment Tax Credit program, which is part of $12.8 million distributed to 52 eligible community development corporations across Massachusetts.

Under this program, donors who give $1,000 or more to the trust will receive a state tax credit for half the amount of the donation. Those who do not owe taxes to Massachusetts will receive a check for half the total of their donation.

In its first year in the program, the trust received the maximum allotment of $175,000 for first-time eligible community development corporations. With a successful fundraising campaign to preserve a house on Fearing Street as another affordable home, the trust was awarded the latest distribution, and must raise $750,000 in the next three years to put this to use.

The Conservation Commission and Historical Commission have approved the plans for the development.

The Planning Board will resume its hearing July 15 at 6:45 p.m. Planning Board members seemed supportive of the project, though a question centered on the boundary of the property and the encroachment of a driveway to the east, which serves as an exit for a dental office.