AUBURN — An effort to stand up a 30-unit “housing first” apartment complex in the city cleared its first major hurdle Monday, with the City Council approving the transfer of three city-owned parcels for the project.

If grant funds are ultimately awarded in March, the Auburn Housing Authority and Portland-based Developers Collaborative would build the complex — intended to house homeless people — on the corner of Hampshire and Gamage streets.

The project is modeled after Huston Commons in Portland, one of three “housing first” programs run by Preble Street, which provides accessible, barrier-free housing and services for people experiencing chronic homelessness.

Proponents of the housing first model in Maine say it has saved the lives of hundreds of people and that there is evidence that the programs dramatically reduce costs of other city services. The city and its partners are hoping to take advantage of MaineHousing funding for housing first initiatives, as the state eyes 10 or more such developments to combat homelessness.

A concept image shows what a proposed 30-bed “housing first” development could look like on Hampshire Street in Auburn. The project is modeled after Huston Commons in Portland, one of three housing first buildings operated by Preble Street to provide accessible barrier-free services for people experiencing problems with homelessness, housing, hunger and poverty. City of Auburn

Mayor Jeff Harmon, who supports the plan, said Monday that the transfer of the properties at 143 Hampshire St. and 1 and 5 Gamage Street is contingent on the housing authority receiving the grant funding.

The council voted 5-0 to approve the land transfer, with councilors Steve Milks and Ben Weisner absent. There were no comments made from the public.

Councilor Belinda Gerry said she’s “in total support of this land going to this project,” and believes in the long run it will cut down on other city costs, such as “calls for service when they’re out on the street.”

“We need to start somewhere,” she said.

Councilor Rick Whiting, who was a longtime director of the Auburn Housing Authority, said all three of the facilities run by Preble Street in Portland have been supported by city officials, police and neighbors, and that there is evidence that the model works.

During a previous workshop on the proposal, at least one councilor questioned if the city is losing out on revenue from gifting the properties rather than selling them. According to a council memo, the total assessed value of all three properties is $52,900.

Councilor Adam Platz said the properties are not currently generating any tax revenue, and that when developed there would be some revenue from the properties. According to the council memo, it is likely the council will be asked to establish a tax increment financing district with a credit enhancement agreement to offset development costs. But the memo said the city would still retain a portion of the taxes paid to be used to improve area infrastructure, as well as contribute to the new Public Safety Building expenses.