Officials have begun construction on a new housing project targeting the chronically homeless. Funded by a public-private partnership between the City of Dallas and charity groups, the Cottages at Hickory Crossing will provide homes and supportive services for 50 Dallas residents with a history of mental illness and incarceration.

The $8.2 million project is located on a wooded, 2.7-acre site near Interstate 30 and Malcom X Boulevard, just south of downtown Dallas.

Mayor Mike Rawlings said creating the Cottages at Hickory Crossing was "the right thing to do" from a humanitarian and financial perspective.

In a statement, Mayor Mike Rawlings said creating the Cottages at Hickory Crossing was "the right thing to do" from a humanitarian and financial perspective.

"By providing homes and intensive mental health treatment, we’re offering a permanent solution to a complex problem. And we’re doing it in a way that’s cost-effective for the city and county," Rawlings said.

"It’s less expensive to provide homes for the chronically homeless than it is to have them live untreated on the streets, where they keep rotating in and out of hospitals and jails."

Each 400-square-foot unit is furnished and includes a covered porch and shared courtyard. Metrocare Services will provide onsite treatment through psychiatrists, registered nurses, counselors and case managers. These specialists will address substance abuse, behavioral issues and other mental health challenges.

"We put a lot of thought into making the Cottages at Hickory Crossing a livable, viable and sustainable community that works well for the people who live here," said architect Brent Brown.

Private support for the project comes from CitySquare, Central Dallas Community Development Corporation, Metro Dallas Homeless Alliance, Metrocare Services, UT Southwestern Medical Center and Communities Foundation of Texas, which launched the cottages with a $2.5 million challenge grant from its W.W. Caruth Jr. Foundation Fund.