A not-for-profit is partnering with a locally based developer to renovate two vacant apartment buildings near Meridian and 38th streets into specialized affordable housing.

The $7 million project, dubbed The Enclave at Meridian, involves the seven-story Meridian Mark (3777 N. Meridian St.) and the three-story Schuylar (3761 N. Meridian St.) buildings, along with a small duplex next door that will be torn down to make way for parking. The two buildings were built in 1928 and 1918, respectively.

The Bethlehem House, which provides services for people affected by substance abuse and HIV, will own the buildings, while Indianapolis-based Herman & Kittle Properties will serve as general contractor and property manager.

Plans call for 75 studio to two-bedroom units, along with exercise and community rooms. Both buildings will get a complete interior renovation. Construction is set to begin in early May.

Bethlehem House is set to receive $8 million in federal tax credits for the project over 10 years, and KeyBank has agreed to provide a $5.7 million construction loan, the group said. Bethlehem paid about $1.2 million for the properties.