EAST CHICAGO - City officials want to use money from a state grant approved recently to help continued development on a complex to provide housing that will cater to senior citizens.

Municipal government had applied for a $4.4 million grant from a federal stimulus program, but learned last week they were approved for receipt of $1.9 million.

With that share, officials with the East Chicago Redevelopment Department said they will do work toward a 60-unit building for senior citizens in the North Harbor neighborhood.

"This money will help us to develop housing for people who choose to live in East Chicago," said John Artis, the department's executive director.

City officials said they are working with The Community Builders and the Hispanic Housing Development Corp., to redevelop about 30 properties.

The grant, which will be distributed to East Chicago officials in pieces as money is needed, is money that originated with a federal program that is a holdover from President George W. Bush.

Under that program that is meant to help local governments cope with vacant and foreclosed properties, the federal government provided Indiana state government with $50 million that it could distribute to communities as it saw fit.

Indiana officials last week announced they split the money into 21 smaller grants, of which East Chicago will receive up to $1.9 million.

State officials said they hope that municipalities are able to use the money to help put people into homes that otherwise would be sitting empty, or to turn those homes into property that can be redeveloped for future use.

Under the federal program, Gary and Hammond received money directly from the federal government, as did Lake County. East Chicago, because it has a population under 50,000, had to apply through the state to get a share of this particular program's funds.