A $578,000 grant has been awarded to the Salamanca Housing Authority by the state Division of Housing and Community Renewal.
Plans are to add an 11-unit addition to the Hillview Manor for the elderly and disabled on Chestnut Street.
The housing authority is prepared to contribute $100,000 to the project, according to Ronald J. Yehl, general manager.
A two-story addition will be put on the south side, using a portion of the parking area.
Originally constructed in 1972, the complex was designed for 50 units but scaled back then.
Yehl said there is a waiting list of about 20 people who want to live there.