LEWISTON – Plans to convert the former St. Dominic Regional High School into elderly housing have gotten preliminary approval from the Maine State Housing Authority.

Renovating the old school into assisted living units will cost about $7 million, according to Greg Mitchell, development director for the city.

The city and others applied this spring to the authority’s Low Income Housing Tax Credit Program for partial financing. The program sells tax credits to investors to fund certain projects. Lewiston’s application scored highest in this round of the program, according to a letter from the authority, indicating a preliminary commitment of $2.2 million in credits. Final decisions won’t be made until this fall.

The city has made a tentative commitment of $1.1 million, subject to several things, including the approved tax credits and ownership of the project by the Lewiston Housing Authority, Mitchell said.

The City Council has yet to authorize those funds.

Another $4 million would come from the private sector.

Jim Andrews, community development director, said the city has been working with the Diocese of Portland off and on since 1998 on ideas for developing the property.

MSHA paperwork indicated the former school has an assessed value of $3.9 million and a purchase price of $200,000.

The building has been empty for three years, ever since the school moved to a new building in Auburn. It was only put on the market about eight months ago, Andrews said. The price was higher then.

Plans call for up to 37 one-room units as well as space for community use and for nonprofits such as Meals on Wheels. Rent will range from $350 to $450 a month with the possibility of tenant ownership.

Market studies have demonstrated a need for elderly housing in the area, Andrews said. Plus, the city can rely on experience: when the Frye School units opened last year, there was a waiting list of up to 75 people, he said. Only 27 places were available.