Mercy Health Partners will transfer ownership of the Over-the-Rhine units and give $3.6 million to Mercy Housing. Mercy Housing also wants the city to kick in nearly $550,000 through a loan and a lead-abatement grant. Cincinnati's community development department has given tentative approval to a $290,990 loan and a $259,000 lead-abatement grant.

In exchange, Mercy Housing will assume $4 million in debt and use the cash to renovate the 35 buildings and commercial spaces. There will be about 25 condos and 135 apartment units when the job is finished because smaller studio apartments will be converted into family-sized units.

Six buildings on Main Street will be renovated with new storefronts topped by condos, said Stan Keasling, Mercy Housing's vice president for real estate development.

"We recognized the fact that there are a number of opportunities to enhance underutilized commercial spaces and hopefully will bring a tenant that can add to the economic vibrancy of Main Street," Keasling said.

Keasling said his group already has started work on a store space at 1401 Main St. No tenant has signed leases for any of the commercial spaces.

Though both groups share the Mercy name, they are separate. Mercy Housing is a nonprofit group that specializes in renovating and managing low-income units.

Mercy Health Partners, which primarily provides health care services in Southwest Ohio, took ownership of the Over-the-Rhine apartments when it acquired the assets of the Franciscan Health System in 1999.

"We've been looking for an organization that would take over the properties," said Ken Page, senior vice president with Mercy Health.

E-mail kalltucker@enquirer.com