WAPATO, Wash. -- Construction of a roughly $10 million farm worker housing project in town is targeted for a June completion.

Construction on the project consisting of 50 units began in August on about three acres off of Dove Lane. Units will feature two, three and four bedrooms, and rent will range from $390 to $642 a month.

The project will help meet a growing demand for farm worker housing in the Lower Valley, said Mario Villanueva, executive director of Catholic Charities Housing Services, which is overseeing the project.

"Everybody is talking about shovel-ready and job creation," he said.

Most of the funding for the project is coming from $7.7 million in equity financing from KeyBank through low-income housing tax credits, and another $3.4 million in construction financing from KeyBank.

The project also received a $2 million grant from the Washington State Housing Trust Fund, and the city received a $400,000 federal Community Development Block Grant to put toward the project.

This will be the seventh such housing project erected in the Lower Valley.

Similar housing projects have been constructed in Grandview, Granger, Mabton, Toppenish, Sunnyside and Buena.

"We think there are a lot of working families living in bad conditions and paying too much for rent," Villanueva said.

Catholic Charities Housing Services, part of the Diocese of Yakima, is co-developing the project with Beacon Development Group. Representatives from both Catholic Charities and Beacon noted the importance of receiving support from KeyBank when credit lending is tight in this down economy.

Like other housing projects by Catholic Charities, the one in Wapato will feature a service center with a computer lab and classroom for English classes, first-time home buyers classes and after-school homework programs.

Rents will range from $390 to $642 monthly, with 40 units set aside for households that incomes of $13,913 or less and 10 units for families that earn incomes up to $17,414 annually, according to a news release.

The six buildings are being situated around a central courtyard and will incorporate energy-saving "green" features, such as structural insulated panels, energy-efficient lighting, tile flooring and solar tubes. Energy-saving appliances also will be installed.