Norwich — Nearly a year after city and state officials and project developer Onekey LLC celebrated the start of a $30 million renovation of half of the historical Ponemah Mill No. 1 building in Taftville, Gov. Dannel P. Malloy announced Thursday that the project is slated to receive a $6.1 million state affordable-housing grant to launch the second phase.

Malloy announced the funding for The Lofts at Ponemah Mills as part of $23 million in state funding to be awarded to six housing projects through the state's Competitive Housing Assistance for Multifamilies Properties, called CHAMP, program. The grants must be approved by the state Bond Commission at an upcoming meeting.

The approximately $32 million second phase consists of 121 new units of mixed-income family housing, including 74 affordable apartments and 47 market-rate apartments. It would complete the renovation of the 313,000-square-foot, 1870 mill building at the north end of the giant historical Ponemah Mill complex in Taftville, Onekey Director of Operations Finbar O'Neill said Thursday.

“It's a very positive day for us, a very positive day for Norwich,” O'Neill said. “We're gearing up to get going.”

The $30 million first phase under construction received a combination of state and federal grants and tax credit financing for the 116 apartment units and exterior improvements. The project will include a museum with artifacts and photographs dating back to the days when Ponemah was among the world's largest cotton manufacturing plants.

O'Neill said the first phase is “on time and on budget” to be completed this summer. Onekey has hired Konover Residential Corp. to start marketing the units available for lease. A sign announcing available leases will be posted soon at the property, he said.

“That is terrific,” Mayor Deberey Hinchey said Thursday of the grant announcement. “This is so exciting. This is the second phase of a project that is absolutely going to turn around the Taftville village and Norwich, as well. This is just so important to have this project. I can't thank the governor enough. It really is the culmination of four years of hard work by everyone moving this forward.”

Hinchey lobbied hard for the Ponemah funding throughout her more than three years in office, traveling to Hartford frequently to meet with state environmental, economic development and housing officials to promote the project.

In addition to the state financing, as with the first phase, the project will utilize both federal and state historic tax credits as well as federal low-income housing tax credits and financing from the Connecticut Housing Finance Authority, pending board approval, a news release from the governor's office said.

“We have done more in affordable housing over the past several years than Connecticut has in decades, and this is yet another step in that direction,” Malloy said in the release, which announced grants to six projects statewide. “These units will help hundreds of families, support municipalities, attract talented workers, contribute to our economic growth, and create the communities that will be more competitive in today’s business climate.”

c.bessette@theday.com