A vacant lot in the city may become the site of new homes for two disabled veterans and their families.

The Butler County Housing Authority is partnering with Accessible Dreams, a nonprofit based in Washington, Pa., and Northwest Bank with hopes of building a duplex on South Chestnut Street.

The vacant site is a property obtained by the authority through its dilapidated housing removal program.

Accessible Dreams is a nonprofit group with a mission of providing accessible housing for people with disabilities.

Perry O’Malley, authority executive director, said the funding is in place and the project is only awaiting final approval from the city.

“The process is in the works right now,” he said, estimating the homes could be completed within six months.

The two homes will be for homeless veterans, who will be selected before construction begins.

“The homes will be designed specifically for their needs,” he said.

O’Malley said the authority has lists of veterans who will be considered through other programs.

Each home is expected to cost about $160,000.

Development will be supported by a $150,000 federal home loan building grant through Northwest Bank.

“That leaves about $85,000 left for each family through a mortgage,” O’Malley said. “Over 30 years, that’s about $600 per month. That’s very affordable.”

The two families will each receive a Section 8 voucher to help pay for the housing.

The voucher program through the U.S. Department of Housing and Urban Development assists low-income families, the elderly, and the disabled to afford housing in the private market.

The grant through Northwest Bank will be considered a second mortgage. Should the property be sold, the owner would be responsible for the payment.

If the family’s income rises above the Section 8 level, which is dependent upon the family size and the location of the home, the family would begin to make adjusted payments for the second mortgage as well.

O’Malley said the project is evidence of the successes of the housing blight program.

The development also shows progress in a section of the city that has been the focus of the authority.

“We’ve made significant improvements in the West End over the last few years,” O’Malley said.

The authority hopes to continue with other homes in the city, but O’Malley said it needs further approval to bypass the city’s strict zoning policies in regards to density.

“We have five other sites in mind,” he said. “But here it took three lots to build two houses.”

O’Malley said the project has yet to receive the housing density waiver for its South Chestnut Street homes, but added the city has been involved in discussions about the plan.

“They’re aware of it,” he said.

O’Malley said the two homes will both add to the city’s tax roll.

“When’s the last time someone built a home in the city,” he said. “It’s a good deal.”