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Mercy Housing Northwest will redevelop the former United States Navy barracks at Magnuson Park into 128 affordable housing units, according to the Northwest Reporter, the communications arm of the Northwest Multiple Listing Service.

The nonprofit agency received $9.7 million in state funding from the Washington State Department of Commerce for the project, which is expected to cost about $60 million.

The dilapidated 90-year-old building will undergo extensive renovation. Known as Building 9, it encompasses 223,000 square feet. Parts of the building’s historic architecture will be preserved, including its historic entrances, corridors, stairwells, windows and third floor dormers, according to the Northwest Reporter.

When completed in mid-2018, the apartments will be priced for renters who earn up to 60 percent of the Seattle area’s median income. In addition to creating a community for working families, Mercy Housing intends to reach out to veterans and individuals with disabilities.

On-site amenities will include a computer lab, laundry facilities on each floor, an exercise studio, bike storage and maintenance area, and children’s indoor play areas in the basement.

In addition, a portion of the building will be devoted to a full-service community health center operated by SeaMar Community Health Clinics. The clinic will provide medical, dental and behavioral health services to residents of Building 9, Sand Point and the greater Northeast Seattle area.

Since 1981, Mercy Housing has developed and managed approximately 2,400 affordable rental homes throughout the Northwest, serving more than 5,100 residents each day. The organization has also helped more than 100 families build and purchase their own homes.