CHANDLER — The second construction phase of a government-subsidized apartment community on Farm-to-Market Road 2010 is underway, and the first homes should be available for lease within the next four months, city administrator Jim Moffeit said.

“The first phase is 30 units, and the second phase is 44 units. The first 30 apartments should be ready by June of this year.”

An $8 million project, SilverLeaf at Chandler is for tenants 55 and older who are on fixed incomes. The one- and two-bedroom units range in price from $194 to $565.

According to city documents, income restrictions for a family of two is between $12,500 and $24,000. It is between $11,000 and $22,000 for a one-person tenant.

Chandler’s Economic Development Foundation, which Moffeit chairs, provided a $100,000 loan to Solutions Plus last April to help cover the cost of infrastructure.

And last November, the city approved a resolution “declaring support” for SilverLeaf to apply for HOME funds from the Texas Department of Housing and Community Affairs this year.

The state program provides grants and loans to help governments and agencies build affordable housing to low-income families.

SilverLeaf may mark the start of an initiative by city officials to increase housing in the area and attract more businesses and industry as projections show growth west of Tyler will play a role in advancing Chandler’s economy.

The estimated median home value in Chandler in 2007 was $123,586. That same year, 25 permits were issued on home construction at an average cost of $134,600. In 2006, 23 permits were issued at an average cost of $143,700.

A combined 58 permits were issued in the previous two years. Since 1996, the most building permits acquired for single-home construction was in 1997, with 39. The average cost that year was $79,900.

But Chandler can only grow so much, Moffeit has said, even following an economic boom with the construction of Loop 49 and population growth across Texas.

SilverLeaf, officials have said, is expected to create two to four jobs and enhance the area’s economy, with about 70 percent of SilverLeaf tenants moving here from outside Chandler.