LEWISTON — The first major step toward redeveloping the massive Continental Mill is moving forward after housing developer The Szanton Co. secured funding from MaineHousing this week.

An announcement from Szanton said the funding will allow design plans to continue for the 72-unit Picker House Lofts, which will redevelop the central building of the mill complex owned by Chinburg Properties.

According to Amy Cullen, vice president of The Szanton Co., the affordable housing tax credits from MaineHousing will drive roughly $8 million in equity for the $22.4 million project. The developers will also utilize state and federal historic investment tax credits to drive another $9.7 million, Cullen said.

When complete, the mill that’s been vacant for decades will feature 46 units of workforce housing and 26 market rate units — a mix of one-, two- and three-bedroom units. The workforce housing units will be set aside for households with incomes at or below 60% of the area median income, which is roughly $42,000.

City officials consider the project an important shift toward the eventual redevelopment of the entire complex, as well as the city’s larger riverfront island area. And, as a statewide housing shortage has driven up prices, new units are needed.

Lincoln Jeffers, director of economic and community development, said the city was excited to hear the funding award.

“The project will be the first phase of redevelopment in the Continental Mill, a beautiful building with a rich history located on the banks of the Androscoggin,” he said. “I look forward to having this third opportunity to work with The Szanton Company, bringing mixed income housing to Lewiston’s riverfront.”

He said the riverfront area is one of Lewiston’s “prime jewels,” and “an asset we need to better capitalize on.” The Continental Mill redevelopment is an important piece of that, he said.

Earlier this year, the City Council approved the creation of a tax increment financing district for the project, a 23-year agreement that will return a portion of tax revenue collected to the developer.

“We are thrilled to have reached this point,” said Nathan Szanton, president of The Szanton Co. “This is when projects go from being speculative to a real ‘go,’ and now we can go into detailed design and put the project out to bid.”

Construction is not expected to begin until late 2022, with an opening slated for late 2023.

According to the announcement from Szanton, the building will feature a roof deck, fitness room, community room, indoor bike storage, an on-site property manager, and an on-site resident service coordinator. Rents for the workforce units will range from about $700 to $1,100, while the market rents are expected to range from $1,050 to $1,350.

Cullen said she expects the project will add to Lewiston’s downtown labor force. She said lower-income tenants are often retail clerks, secretaries, servers, health care workers, child care workers, and young people recently out of college or vocational school, while market-rate tenants range from doctors to city employees to middle managers.

“We believe cities and their downtowns are stronger when residents are able to build and maintain their well-being, careers, and families in quality housing near neighborhood services and amenities,” Cullen said.

The developers recently backed away from a similar, mixed-income housing proposal in Cape Elizabeth after opponents gathered enough signatures to force a referendum, at a time when affordable housing is virtually nonexistent in the area.

In the past year, the vacancy rates and high prices that have plagued southern Maine have swept into the rest of the state, including Lewiston-Auburn.