A new proposal would turn the site of a former Portland homeless shelter into affordable housing.

Avesta Housing and Preble Street have unveiled a proposal for “site-based housing first,” which Preble Street says is a solution to chronic homelessness.

Mainebiz reports that it would be located at the site of the former Oxford Street Shelter and include on-site support services.

Mainebiz says Avesta has secured an option agreement to purchase a half-acre parcel where the homeless shelter had been.

The mixed-income community would have 30 to 50 affordable apartments.

The project still needs city approval and funding to move forward.