The Philadelphia Housing Authority broke ground Wednesday on a $37 million project to create three streets where the former Blumberg public housing complex stood and renovate the 13-story senior-citizen apartment building that remains there.

It is the second phase of a plan to remake the city's blighted Sharswood neighborhood, and is expected to be completed in a year.

In the fall of 2015, the Housing Authority began the $675 million plan with the goal of preserving and increasing affordable housing in an area pressured by increasing gentrification. The authority also demolished two public housing towers.

The rehabilitation of the Blumberg Senior Apartments, with 94 one-bedroom units, is expected to cost $28 million. The plan is to modernize the kitchens, bathrooms, elevators, and common areas.

In addition, 23rd Street will be extended between Oxford and Jefferson Streets, with a new Bucknell Way built between the streets. Bolton Street will be extended between 22nd Street and 23rd. The intent is to break up the superblock where the Blumberg housing project was, making the area more walkable.

The street work is expected to cost $8.9 million.