GREENFIELD — What was once the site of an old farmhouse is now being transformed into an affordable, all-electric one-bedroom home at 184 Petty Plain Road with help from Pioneer Valley Habitat for Humanity.

The idea for the project, funded using $260,000 that was raised by Habitat for Humanity along with $15,000 in local Community Preservation Act funding, was conceived roughly 15 years ago when Rural Development Inc. (RDI) acquired the Solar Village subdivision, including the 184 Petty Plain Road lot. On Sunday, a crowd gathered to help prop up the first wall of the house, which will be Habitat for Humanity’s 58th affordable home and its sixth in Greenfield.

Pioneer Valley Habitat for Humanity Executive Director Megan McDonough said roughly a decade after Habitat reached out to RDI to inquire about building a house on the lot, the organization sold Habitat the lot for a “deeply discounted price.” She said the house is slated for completion in about a year.

“This is just a nice story about things coming full circle and about the hard work it takes to find land, to build affordable housing, the investment it takes and how it also takes vision. It takes someone saying, ‘Here’s an opportunity, let’s make that happen,’” McDonough said. “We’re very excited to build another home in Greenfield. … This was a run-down house just a few years ago and now it’s going to be a nice new one.”

The house was funded, in-part, through Neighborhood Stabilization capital grants, administered by MassHousing. Before the crowd made its way inside the construction site on Sunday to ceremonially lift the house’s first wall, MassHousing Neighborhood Stabilization Program Manager Beverly Estes-Smargiassi spoke of the project, noting that although it is not as large as some of Boston’s affordable housing projects, it still advances the goal of expanding home ownership in western Massachusetts.

“We really appreciate the opportunity to see this transformation,” Estes-Smargiassi said. “We know how much of a difference just a single unit, or two units, can make. It makes a huge difference for a city like Greenfield. … We’re excited to work with these more rural areas and make these kinds of impacts where it’s very hard to get affordable housing.”

Eligible applicants for Habitat for Humanity homes have incomes up to 60% of area median income (adjusted for family size). All Habitat for Humanity-built homes are restricted to income-eligible buyers in perpetuity.

According to a written statement from Habitat for Humanity, the organization has a “perpetual legacy” of reinvesting its mortgage payments toward constructing more homes. Habitat noted that the future homeowners will invest 250 hours of labor into building their house.

Matthew Conway, communications director for the Greenfield Mayor’s Office, expressed his gratitude to Habitat for its addition to the city’s affordable housing market. He referred to the house as a “beacon of hope” amid a challenging housing market.

“Fifty-eight homes — it’s amazing to think about the impact that those homes have had on countless lives,” Conway said. “This home right here, what you’re building here, this isn’t just the house; it’s a space where people are going to make memories that last a lifetime. Considering the challenges facing the housing market, that’s really something to celebrate.”

After propping up the wall, attendees were handed markers and invited to write a message on its beams. Conway began his message by writing “Welcome to Greenfield.”

Anthony Cammalleri can be reached at acammalleri@recorder.com or 413-930-4429.