VEAZIE – The planning board has approved an addition to the Graham Senior Housing project at the former John R. Graham School.

The project calls for 24 more units to be built at the existing facility.

The town is not providing funding for the estimated $3 million project, and it remains uncertain where the money will come from.

The board approved the addition earlier this week.

“They needed at least a conditional approval from the planning board in order to apply for funding,” Code Enforcement Officer Alan Thomas said Wednesday. “We don’t know what they’re going to get for funding yet.”

He noted that investors get tax credits for investing in low-income housing, and that although Penquis CAP eventually will own and manage the facility, it will remain under the ownership of the investors for the first 15 years.

As part of the project, the town is leasing 3 acres to the project for a “very minimal fee,” Thomas said. All but one-third of an acre will be allotted as open space, which will be used for nature trails.

Some neighbors with concerns about a nearby pond and trees at the rear of the lot attended Monday’s meeting, Thomas said.

Planners agreed to increase the buffer around the pond from 20 to 25 feet, and the trees will be left untouched.

“It left a fairly narrow envelope to put the structure in,” Thomas said, but he added that it is doable.

Town staff members continue to work with Stephen B. Mooers, director of housing services for Penquis CAP, and Jim Parker of Civil Engineering Services of Brewer to develop project plans.

Architect David Merritt of Eddington designed the first portion of the project about five years ago, and also is the architect who has been selected for the second phase.

The first phase of the project, which was completed about two years ago, created 20 units of affordable housing for senior citizens, as well as a senior community center that is used by local residents, the Eastern Agency on Aging, and other groups.