The East Hampton Housing Authority yesterday closed on the purchase of 531 Montauk Hwy. in Amagansett — the site of a planned $18 million, 40-unit workforce housing project.

Puerto Rico-based Putnam Farm Holdings LLC sold the property for about $3.4 million.

Plans are to construct the cottage-style housing on the vacant 4.7-acre tract. A cluster of about 15 small wood-frame structures would be built.

Included would be 30 to 40 studio, one-, two- and three-bedroom apartments to be priced from $1,000 to $2,200 per month, and about 20 percent of the units would be available to Section 8 applicants.

The goal of the project is to provide affordable housing for people who work in pricey East Hampton.

Construction is expected to begin in 18 months and to be completed in 2019.

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