Supporters of a long-awaited, $50-million low-income housing project near downtown Medford hope the third time’s the charm to secure state support.

The project, developed by Rubicon Investments and Edlen & Co, has generated enough enthusiasm at the state level to qualify to participate in a pilot program next year that could secure $35 million in state grants and federal tax credits.

The proposed four-story Dolores Huerta Apartments at 723 Central Ave. would have 115 one- to three-bedroom units just north of Les Schwab on a 3.25-acre Central Avenue property in the Liberty Park neighborhood.

The Medford Urban Renewal Agency board, which has set aside $4.2 million for the project, expressed continued support but also signaled this might be the last time it extends an option agreement with Rubicon and Edlen. MURA will consider formal action to extend the option agreement at a later date.

The pilot project is different than the two previous attempts to secure the state grant that hasn’t succeeded in two other applications.

Instead of just applying for the state Local and Innovation Fast Track (LIFT) Program grant as was done previously, the state pilot project application would be for both the LIFT grant and Low-Income Housing Tax Credits (LIHTC) programs, which together amount to $35 million.

Even though the project qualifies for the pilot project, the competition for state dollars for low-income housing remains competitive.

The project has received feedback from state officials that should improve its chances during the next application process.

The project will require a complicated financing scheme to succeed that will include the state dollars, the federal tax credits, MURA money and conventional financing. With $4.2 million tied up and no assurances the project will succeed, the MURA board, made up of city councilors, wondered on Aug. 15 when it should begin looking at other potential projects for the Central Avenue property.

Board member Kevin Stine had doubts the project would ever materialize.

“It seems like this is not going to happen,” he said. “It makes more sense to open this up and see what could happen on this property.”

Stine said he thinks the city has been “boxed into a corner,” tying up millions of MURA dollars that could be used for other projects.

Board member Sarah Spansail urged patience, saying it takes a few tries before these types of projects are successful.

Board member Nick Card said he was in favor of supporting an extension to the option agreement with Rubicon and Edlen.

“I’d like to see this project come to completion,” he said.

Board member Tim D’Alessandro said, “I think it’s a solid project. I have the patience to wait.”

But he also said the board needs to think about other uses for the property.

“There is the potential for a conference center,” D’Alessandro said.

An ongoing study by the real estate consulting firm Hunden Partners, has found a large convention center and high-rise hotel in downtown Medford could provide a cheaper alternative than Portland and Sacramento markets.

The preliminary findings, requested by the city of Medford, are the first of a three-part, $60,000 study that will ultimately propose possible locations in downtown Medford, as well as costs to build the facility and ways to finance it, likely through a public/private partnership.

MURA selected Rubicon and Edlen in 2022 to develop plans for the apartments, which would house people who earn 60% or less of the area median income, or $45,000 annually for a family of four.

Major convention center and high-rise hotel eyed for downtown Medford