MADISON, Wis. -- The city's major redevelopment of Allied Drive is officially under way.

State and community officials kicked the city housing project into high gear on Monday, though the demolition of 48 apartments actually began on Friday.

Monday's groundbreaking followed two years of planning and $3.6 million of city money to buy six buildings, plus the acquisition of $7.5 million in federal tax credits.

Some neighbors called it a happy day and said that they were moving on, not moving out, WISC-TV reported.

Community Development Authority leaders said the project was all possible due to teamwork.

"Federal tax credits administrated by a state agency purchased by private investors to finance an independent authority's plan that was approved by the city based on the hopes and needs of a neighborhood," explained CDA chairman Stuart Levitan.

"This is a great start and I thank God for it, I really do," said Alice Howard, president of the Allied-Dunn's Marsh Neighborhood Association. "I'm happy, I really am. We're moving forward."

The project will build 48 new apartments for low- and very low-income people, plus offer 60 new home ownership opportunities, officials said.

Neighbors and others said it's a great start in turning around Allied Drive, WISC-TV reported.