A rendering of the DeWitt housing project along Pine Street in Lewiston shows the two buildings at right. Crews are expected to break ground in April. City of Lewiston

LEWISTON — The City Council approved a final piece of financing Tuesday for the 104-unit DeWitt housing development along Pine Street, as work is scheduled to begin next month.

The City Council formalized a previous commitment to provide $225,000 in federal HOME funds toward the development, which is the second phase of the Choice Neighborhoods initiative.

According to Nate Libby, director of economic and community development, the HOME funds are part of a complicated financing package that will be finalized in the coming weeks.

According to the U.S. Department of Housing and Urban Development, the HOME Investment Partnerships Program provides formula grants to states and localities that communities use — often in partnership with local nonprofit groups — to fund a wide range of activities. They include building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people. HOME is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households.

Libby said drawings and specifications for the two five-story buildings are 99% complete, and “construction, including demolition work, is expected to start in April.”

According to project details, the apartments will be a mix of workforce and market-rate units, with 83 income-restricted affordable units and 21 market-rate units.

The DeWitt project follows the 82-unit Wedgewood project, which redeveloped a large section along Pine, Pierce, Walnut and Bartlett streets, including the historic Wedgewood house, the majority of which was completed this year.

Both developments have stemmed from the Choice Neighborhoods program, which was awarded $35 million from HUD toward a downtown “transformation plan” that replaces distressed housing while also boosting other neighborhood needs such as child care and health care.

Last year, Lewiston Housing and its development partner Avesta Housing requested further financial assistance from the city after the DeWitt project had a funding shortfall due to higher construction costs.

Earlier this year, the council approved a series of amendments to a credit enhancement agreement and TIF program that will provide the development an estimated $543,636 through property tax reimbursement over 19 years.

Chris Kilmurry, executive director of Lewiston Housing, said the HOME funding pays for one two-bedroom unit that remains a “floating” unit, allowing tenants to gain income over time and not be forced to move.

A Lewiston Housing staff member said the HOME funds are a very small portion of the financing for the $45 million project, but “every dollar is critically important.”

The project is also expected to feature 15,000 square feet of ground floor commercial space.