LYNN – Construction for a housing development at the site of the former Waterworks building on Walnut Street is scheduled to begin in June.Site work will take place in mid- to late-April to prepare the area for construction.According to Neighborhood Development Manager for Lynn Housing Authority Peggy Phelps, abutters were thrilled to see the approximately 120-year-old structure torn down several weeks ago and are eager to have the new homes built in its place.”It was becoming quite the eyesore,” she said. “But there are a lot of good things happening in the neighborhood lately and people are just so happy with what has already gone on.”The city and abutters collectively agreed to raze the old structure at a public hearing last July, saying it was unsound and a financial risk for developers to renovate.The plan consists of a mixed-use development of five single-family homes – three on Childs, two on Flint – and two multi-family homes on Walnut Street to be sold at both affordable and market rates.Phelps said 40 grants were recently handed out to abutters of the project at $3,000 apiece to spruce up their homes.”The money will really help the 40 residents who applied for the grants to get new roofs, replace porches and paint their properties,” she said. “Plus it will make the new homes look even better when they are constructed.”