The Housing and Redevelopment Authority of Butler County hopes to convert an abandoned building at the VA Butler Healthcare campus into a living center for senior veterans.

The project would convert the vacant Building 3 at the VA campus into 18 one-bedroom units for senior homeless veterans 62 and older and their spouses.

The $2.7 million project would be mostly funded through the Pennsylvania Housing Finance Agency.

The authority hopes to get about $2 million from the agency’s tax credits program. Funding is expected to be awarded to projects across the state at the agency’s board meeting June 12.

Perry O’Malley, the executive director of the authority, said the funding is difficult to receive from the state.

“It’s an extremely competitive program,” he said Friday at the authority’s monthly meeting. “Only about 16 to 18 projects will probably be funded.”

O’Malley said authority officials hope that the veteran project, which he called relatively small, will be selected.

“I’d be surprised if it’s not funded,” he said. “Then again, I’ve been surprised before.”

Should funding be in place, the authority would sign a 75-year lease with the VA for the 2-acre property.

O’Malley said there would be no additional funding required for the lease since the partnership with the VA would support veterans.

The authority’s nonprofit organization would own and operate the building.

O’Malley said the project’s targeted occupants should help it to be funded.

“It’s for veterans with special needs,” he said.

The authority believes the project makes sense because residents would have access to supportive outpatient services at the VA campus.

The building would be renovated to include air conditioning, laundry, furnished common areas, full kitchen facilities, security system, management offices, computer and wellness centers, an on-site library, storage lockers, and wall-to-wall carpeting.

The project also would be funded through the Federal Home Loan Bank Affordable Housing Program and the Act 137 funds from Butler County.

The authority has had similar partnerships with the VA in the past.

The authority opened Deshon Place in 2000 and Deshon Place II in 2009 on the VA campus. Those two buildings offer a combined 30 apartments for homeless individuals in Butler County. Individuals can live in those apartments for up to two years.

There is no timetable of when renovations to the building may take place if the authority is awarded the funding.