A planned affordable housing development for seniors who receive mental health services has received a $275,000 boost from the state, Lt. Gov. Karyn Polito announced Thursday.

The project will include 10 units of affordable housing, with support services available around the clock to residents. The development, to be known as the Mendes Monteiro House, will be located on Anderson Way.

The funds, which are provided through a MassWorks Infrastructure Program grant, will support the installation of utilities, including water, sewer, gas, telecommunications, and electricity to within 10 feet of the future location of the Mendes Monteiro House.  

The award, announced at a press event at the Housing Authority, represents a “really big milestone for the Housing Authority,’’ said Connie Desbiens, executive director of the Dartmouth Housing Authority. 

Desbiens said she hopes to see “shovels in the ground’’ to start construction in the spring, with occupancy by December 2023.

Polito praised the project as “an innovation in housing.’’

“This is terrific,’’ said Polito, who has a home in Dartmouth. “There’s not a lot of these in the Commonwealth.’’

The project “allows local residents to find a place they can afford and stay in a community they have ties to,’’ she said.

The project has an estimated price tag of about $3.5 million to $3.7 million and is a partnership between the Dartmouth Housing Authority and the Stone Soup Collaborative, an affordable housing development consulting firm. The bulk of the funding for the project will come from the state, Desbiens said. 

The lack of affordable housing is “one of the biggest challenges Massachusetts faces,’’ Polito said. 

The town has taken some steps toward providing affordable housing. In addition to the project discussed Thursday, the Zoning Board earlier this year approved a 228-unit affordable apartment complex near the intersection of Reed and State roads. 

State Rep. Chris Markey, who represents Dartmouth, said he has a “soft spot in my heart’’ for this project, since he once served on the Dartmouth Housing Authority. 

He echoed Polito’s comments that providing housing affordable to residents remains a concern.

“If we can create workplace housing, we create a middle class,’’ he said. That can bridge the gap between “the unfortunate poor’’ and “the super rich,’’ he said.