GOSHEN — A co-housing project along the Millrace Canal has hit a $2 million milestone, the Goshen Redevelopment Commission heard Tuesday.

The commission voted to release a mortgage executed by Millrace Neighborhood LLC, the developer of several homes along the canal and south of the Hawks building. It’s a co-housing project, meaning residents would actively participate in the design and operation of their neighborhood, which started taking shape about five years ago.

The plan called for building more than a dozen houses on the site of a former rubber company, which had to undergo some environmental cleanup first. The property was sold to the not-for-profit LLC for $100, though under the terms of the mortgage executed in October 2016, the commission held a lien on the property until the group had invested at least $2 million to develop the site.

The past few months have seen a burst of activity at the site, with a handful of new homes going up, after the discovery of additional soil issues in spring 2018 threatened the project. Problems including buried debris made the ground unusable in some spots without extra supports being driven in, and the group avoided selling any more lots until the soil issue could be fixed.

Construction on the two affected homes was also paused until the homeowners knew they could afford the fix. The group turned to the RDC for help, saying the extra costs were hard to bear and letting the lots go undeveloped would increase the shared burden on everyone else.

Commission members agreed to a $100,000 request in October, which covered most of the nearly $150,000 needed to shore up the ground under the homes. Each homeowner had also contributed an extra $2,690, on top of their original lot cost of $35,589.

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