Interfaith Housing Services would begin with modular homes on three vacant lots in south Hutchinson and could eventually add up to 30 housing units, said Ron Fisher, the group’s director of operations.

Interfaith is applying for a $190,000 grant from the Kansas Housing Resources to partially fund the three modular homes. If that project succeeds, it will apply for a larger grant to build more units on 1.2 acres that it already owns, The Hutchinson News reported (http://bit.ly/1ybfogR ).

“There’s a sense that the revitalization area needs more than just poking and prodding, but a real impact area instead of a little here and a little there,” said Ron Fisher, director of operations for Interfaith.

Building new housing in established residential areas has been limited because the newer homes typically will not appraise at a value equal to the construction cost, which generally makes it impossible to get mortgages and insurance. Fisher said the plan is to test if the three modular homes will close the appraisal gap.

If the test build is cost-efficient, Interfaith will apply for a larger grant to help build the other housing units, starting with duplexes and fourplexes.

“We’re very supportive of Interfaith’s impact build,” said Casey Tillman, Hutchinson’s new housing program coordinator.