The nonprofit Island Housing Trust cut the ribbon Thursday on its latest project: seven affordable apartments at the Perlman House, a 100-year-old former inn on State Road in Vineyard Haven that has undergone a complete renovation using public and private monies.

Named after its former owners, Steven and Judy Perlman, the apartment house is the third IHT building to open this year and the second in Vineyard Haven. The Hanover House next door was also converted to apartments last year, and is used as a residence for Martha’s Vineyard Hospital employees.

At the Perlman House, the seven new apartments include six one-bedroom units and one two-bedroom unit. The trust bought the property for $950,000; the total cost of the project was $2.2 million.

At the ceremony Thursday, IHT executive director Philippe Jordi said the former owners wanted the property to be used for people who work and live on the Island year-round.

“That’s really important in terms of us continuing to do our work on the Island, we need to work with people who believe in our mission,” Mr. Jordi said.

He thanked the Martha’s Vineyard Savings Bank, trust donors and the Tisbury and West Tisbury community preservation committees for contributing to the project. The trust also received grant money and long-term financing from the Massachusetts Department of Housing and Community Development.

Chris Priore of Bay State Leisure Homes was the general contractor who completed the renovation. “It was exciting to see what shape the building was in and it was better than what I expected for a 100-year-old building,” said Mr. Priore, an Islander and 1997 graduate of the Martha’s Vineyard Regional High School.

“As somebody that lives here and went to high school here, it’s very gratifying to know that I can build these projects,” Mr. Priore said.

Erin Brown, one of the seven tenants who will be moving into the Perlman house on Oct. 1, is a teacher at the West Tisbury School. She will share the two-bedroom apartment with her sister. “I’m super excited, it’s amazing,” she said.