PEABODY — The project to convert the former Brown School into low-income senior housing got a $1.87 million boost from the state yesterday.

"I think it's fantastic," City Planner Mike Parquette said. "It makes it possible for the project to go forward."

The Brown School was one of 18 projects statewide to receive $71.2 million in low-income housing funds.

Students moved into their new Brown School facility a few doors down on Lynn Street in the fall of 2003, but the old Capt. Samuel L. Brown School has since lain dorment.

Last year, contractor Rich Hayden of RSJ Group LLC of Boxford made the lone proposal to convert the former school into 61 apartments, 20 in the existing building and another 41 in a newly constructed building. But the project at the 1.5 acre site stalled until Hayden could get funding in place.

"This should be the final piece in the puzzle," Parquette said.

Hayden agreed. He expected the housing project to get started around May 1.

"I'm very enthused, no question about it," Hayden said about the additional funding. "It's a terrific step in the right direction. We're looking forward to getting the project off the ground."

The Brown School Conversion would bring much needed affordable housing to the city and restore a derelict building, Parquette said. The city planner also said the project would be a boon to city coffers once the building was back on the tax rolls.

Senate Majority Leader Fred Berry, D-Peabody, welcomed the combination of state and federal dollars for the project.

"When buildings lay vacant for too long, only bad things can happen," Berry said. "I know it's a very important part in South Peabody."

The 100-year-old building was named for Civil War hero Samuel Brown.