COEUR d'ALENE - It might be time to break ground.

After years of discussion, The Housing Company could be ready to start building a multi-use commercial and workforce housing complex in Midtown in 2012.

"We think it's going to be successful and beneficial to the commercial and residential establishments already there," said Douglas Peterson, THC director, a nonprofit component organization of the Idaho Housing and Finance Association (IHFA). "People have been waiting a long time for something to happen."

The roughly $9 million project would rent studio, one and two-bedroom apartments to people who earn less than 60 percent of the median area income. The median income for a family of four locally is $57,000. So for a single person earning $16,000 to $24,000 a year, rent for a studio apartment would range between $351 and $579 a month.

Groundbreaking on the 45-unit building, which would include 9,000 square feet of retail and office space at street level on the corner of Fourth Street and Roosevelt Avenue, could happen in September.

But first, the nonprofit's tax credit application needs to be approved by IHFA, which could net it around $5.3 million in savings. To help improve its chance, THC is seeking a pledge of up to $447,097 in additional financial support from Lake City Development Corp., the city's urban renewal agency.

LCDC has already tentatively agreed to contribute $426,561 in land associated with the project that the agency owns. Peterson said the additional financial support would only be used should costs prove that high, but needed a show of commitment to prove it had the financial backing as part of the application, which is due in February.

The project, first discussed in 2007, originally planned to sell the apartments, but the market shifted THC's focus to offer low income rentals. Because it will rent units, THC applied for the tax credit, which requires every dollar to be documented, Peterson said. That led to the additional request.

Tony Berns, LCDC director, said the money in property the agency has tentatively agreed to contribute to the project would already meet the 5 percent contribution requirement from an urban renewal agency that the application - which is scored in part on points accrued through partnerships - requires.

Costs associated with the new request would go toward building demolition and reimbursing THC for money it has invested in Midtown properties. LCDC will discuss it Jan. 18 during the agency's board meeting.

"I've got my concerns with this, but it's an important project," said Brad Jordan, LCDC board member on the additional request. "This is one of the linchpins" of Midtown.

If built, LCDC could receive back roughly $60,000 in property tax increment per year. The agency has been a driving force behind renovations recently to Midtown, which includes pedestrian-friendly sidewalks, trees and public art.

Peterson said Midtown neighbors will have opportunities to share thoughts and concerns during several meetings as the planning process goes down the line, as they have in the past. Preliminary plans call for a four-story building with around 90 parking spaces. It will have an onsite manager.

"We feel the hand has reached out," said Eric Soles, midtown resident on THC involving neighbors. "We are behind this project."