Rogue Valley Habitat for Humanity has been granted $875,000 in state funds to build housing on Grandview Avenue in Medford.

The project will include eight townhouse-style dwellings, arranged in four groups of two attached units. Each house will likely be two stories, according to Denise James, the agency’s executive director.

Homeowners will own the land beneath their property, as well.

The subsidy is part of $65 million that Oregon Housing and Community Services is giving to 34 housing development projects to help people with low to moderate incomes buy a home, the department said in a release. The fund is expected to yield more than 330 new homes statewide, the release said.

James said this opportunity for lower-income families to become homeowners is needed in the community.

“It’s life-changing,” she said.

In Medford, the funds will cover most of the building costs, including engineers, surveyors and construction fees, James said.

The nonprofit hopes to start construction by fall. At the moment, the site is bare ground.

The state agency has given recipients a three-year timeline to complete their project. The clock starts when the organization signs the contract with the state, which will be soon, James said.

The city of Medford still needs to approve the proposed subdivision. Once that happens, Rogue Valley Habitat for Humanity will start the design work. Then it can finalize the budget and seek funders in Jackson County.

“We still have another few hundred thousand more to raise,” James said.

The nonprofit plans to partner with local businesses and churches to gather donations and possible sponsorships.

The infrastructure — water, sewer and other utilities, as well as a small street — will cost anywhere from $500,000 to $800,000, James said.

On Thursday, Medford City Council approved a $200,000 Housing Opportunity Grant that will cover some of this amount, James said.

Rogue Valley Habitat for Humanity is part of the international Habitat for Humanity organization, which helps bring sturdy affordable housing to individuals and communities and says its practices are based on Christian principles.

James expects the nonprofit will begin selecting homeowners in late summer or early fall.

In addition to showing a need for housing — their income must fall between 40% and 70% of Jackson County’s median income — applicants must be willing to participate in building their own home and study a homeowner education curriculum that the organization provides prior to purchase.

When a building is finished, the nonprofit will sell the homes and carry the mortgage. James said mortgages will be for 30 years and interest-free.

Andrea Bell, director of Oregon Housing and Community Services, said in the release that projects “will not only be affordable for homebuyers now but will support wealth building that will impact future generations.”