BOSTON — The city of Boston broke ground Wednesday on Mission Hill Pathway, a development that will turn vacant city-owned land in the Mission Hill neighborhood into 48 income-restricted homes for first-time buyers, along with gardens, open space and room for small businesses.

All 48 homes will be sold to first-time homebuyers earning between 80% and 100% of the area median income, according to the Mayor's Office of Housing. The project also includes about 30,000 square feet of recreational and urban agriculture space and about 2,000 square feet of ground-floor commercial space along Terrace Street, which the city said is planned for sale or lease to local entrepreneurs.

The city chose ODJ Dev LLC, a joint venture of DVM Housing Partners, Oxbow Urban and JGE Development, through a competitive bidding process run by the housing office. The homes will be in an all-electric building of about 45,000 square feet that the city describes as net zero carbon. Dellbrook will lead construction with ERise Builders, a minority-owned firm.

The new public open space will be owned by the Boston Parks and Recreation Department and cared for by The Trustees of Reservations, which will also own and manage the community garden space, the city said.

Funding comes in part from the city's housing office, the Community Preservation Fund, GrowBoston, the state Executive Office of Housing and Livable Communities, MassHousing, Eastern Bank and others, according to the city.

"Mission Hill Pathway takes land that was sitting vacant and turns it into an asset for the entire neighborhood," said Sheila A. Dillon, the city's chief of housing.

Dariela Villón-Maga, founder and president of DVM Housing Partners, said the homes "will allow first-time buyers to build wealth and create greater stability for their families."

The city said nearly 40,000 homes have been completed, entered construction or advanced into the development pipeline since Mayor Michelle Wu took office, including nearly 12,000 income-restricted homes.

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