A model of the seven-story Temple Place affordable-housin building planned for Central Square, next to the YWCA, is displayed on the website of HMFH Architects Inc.

The funding has arrived for 42 units of affordable housing to be built on Temple Street in Central Square, state Rep. Alice K. Wolf announced Monday: $2.5 million in Department of Housing and Community Development housing subsidies and $752,300 in federal low-income housing tax credits each year for the next 10 years.

Construction of the seven-story building — consisting mostly one- and two-bedroom units, as well as several designed for people with disabilities — is expected to start in spring and take a year to 16 months to finish, according to Cambridge Housing Authority estimates, while Wolf aide Kathleen M. Hornby was hearing potential completion dates of mid- to late 2013. (The YWCA at at 7 Temple St. is doing separate renovations that are likely to start earlier.)

“Following several failed attempts to develop the YWCA’s underused property over the past two decades, the affordable housing will further the Y’s mission of service to women and families and help to reduce the CHA’s waiting list for affordable housing,” according to project leaders at HMFH Architects Inc., the Bishop Allen Drive firm designing the project, which will be designed for energy conservation and “include a green roof, high-efficiency systems, bamboo flooring, recycled materials and covered on-site bicycle parking.”

The Temple Place project is part of a $64.5 million statewide investment in expanding affordable housing options and creating construction jobs across the state, Wolf said. The Cambridge money, directed to the nonprofit Cambridge Affordable Housing Corp., is expected to create 102 jobs.

“I have followed this project since its inception and I believe Temple Apartments will be a beneficial project for the city of Cambridge and will serve a critical housing need in the city and the commonwealth,” Wolf said, crediting Gov. Deval Patrick and Lt. Gov. Tim Murray for their roles in the funding.

Included in the housing will be at least four extremely low-income families participating in the authority’s “Moving to Work” program, said Wolf, a Cambridge Democrat.

This post took significant amounts of material from a press release.