Minor work has restarted at the site of HOPE VI and the first wave of tenants could be moving into their new homes by the end of the year, the project’s developer said Wednesday.

Linda Goodman, executive director of Norstar Development Corp., appeared in front of the city’s Planning Board to request an 18-month site plan extension for phase one of the housing project being constructed in the North End. The extension, which was granted by the board, was needed because unexpected delays and the stoppage of work last summer had eaten up the timeframe set in the initial site plan approval two years ago.

Norstar is working with the Niagara Falls Housing Authority on the $72 million development, which has been awarded $20 million by the U.S. Department of Housing and Urban Development.

Phase one of the project is estimated to cost $30 million and includes the construction of 150 low-income housing units on property at 1501 and 1701 Beech Ave., 1303-1517 and 1751-1757 Center Ave. and 1350 Garden Ave. After breaking ground in November 2007, the work ground to a halt last August after officials from the Niagara County Health Department expressed concerns about incinerator ash found under the site of the old Center Court Park playground.

Subsequent tests revealed the material was nonhazardous, and the Health Department issued an approval notice for the project’s soil management plan. Under that plan, the project’s contractor will be required to cover the site with 2 feet of clean fill.

“We voluntarily halted construction while all this was going on,” Goodman told Planning Board members on Wednesday to explain the need for a site plan extension. “We are now under construction and are waiting for our work crews to give us an anticipated completion date. We’ll be done before (the 18-month extension is up).”

Planning Board member Michael Lewis said renewing the site plan was consistent with past approvals given to the project since no changes are being proposed. Board Chairman Rick Smith agreed, despite having some concerns about the development.

“We’re in too deep now,” Smith said.

Goodman said minor site work restarted last week and the remediation of the affected dirt will begin soon. She predicted some of the rental units in phase one will be ready for occupancy by the start of 2010.

Along with the “unsuitable soil” discovery, Goodman said the project’s delay in recent months has been because developers were waiting for the city to approve and release $3 million to fund the cleanup efforts, including $1 million that had already been set aside for the second phase. After Mayor Paul Dyster signed the agreement last month, the housing authority received approval from HUD to restart work.

Goodman admitted the delays have been frustrating but contends the project was never in danger of losing its federal funding.

“When (HUD) issues funding, they want you to use it,” she said. “HUD has been very supportive.”

Goodman told board members that Norstar will be presenting the phase two site plan within the next few months which calls for the demolition of existing homes and construction of 66 new units at the upper corner of Beech Avenue.

The initial plans included the construction of more than 40 houses that would be made available for purchase by qualified owners. Goodman said that portion of the project hasn’t been eliminated but has been put on hold, initially due to the soil issues and now because of economic factors.