PORTLAND — Avesta Housing has scaled down its proposal for an affordable housing condominium project at the former Marada Adams School on Munjoy Hill.

The project now calls for 16 townhouse-style two- and three-bedroom condominiums along the Vesper Street side of the property, and is significantly smaller than an initial proposal in 2008 to build 40 condo units. That plan included several one-bedroom units.

Avesta said the smaller units were eliminated from the project this year after it was determined there were a large number of one-bedroom units already on the market.

In May, the City Council approved $1.71 million in Neighborhood Stabilization Funds to support the redevelopment project. The total project costs are estimated to be $5.5 million.

“We anticipate being able to pay for the whole project with the sale of the condos and the Neighborhood Stabilization Funds,” Avesta’s Ethan Boxer-Macomber said.

He said the stabilization funds will be used specifically for demolition of the existing school building and construction of the new condos.

The condo units will be sold to income-eligible buyers at prices ranging from $185,000 to $235,000 for the two-bedroom units and $220,000 to $265,000 for the three-bedroom units. Boxer-Macomber said Avesta plans to accept sales reservations in the spring and anticipates the units will sell very quickly.

The project will also include a public playground in the current playground space and a bicycle and walking path connecting O’Brion and Beckett streets.

Avesta was scheduled to present the project to the Planning Board during a workshop late Tuesday.

Boxer-Macomber said the plan is to complete the Planning board and permitting approval process by February and begin construction in late spring.

Emily Parkhurst can be reached at 781-3661 ext. 125 or eparkhurst@theforecaster.net