The Boston Housing Authority is considering whether to ask the Department of Housing and Urban Development for $50 million to renovate the Mission Hill housing development, a neighbor of the Medical School.

The funds would come through a new program which allocates money for renovations in "severely distressed" areas. Mission Hill is currently occupied mainly by low-income families.

Currently, federal regulations demand that homeless families get priority for apartments at the housing development.

Under the new program, the Housing Authority would obtain permission to bring more working and middle-income families into the 800-apartment development, which currently faces economic difficulties and crime.

William H. Wright, director of communications for the Boston Housing Authority, said the purpose of the plan was "to include, instead of exclude, residents in the surrounding community."

The proposal was submitted to various housing task forces and community groups for comment.

Already various groups have said the needs of homeless families must not be overlooked if efforts are made to make Mission Hill a mixed-income development.

June F. Howe, president of the Mission Hill Neighborhood Association, agreed. "I would like to see the development racially and economically mixed," she said. "We have a lot to learn from each other."

Wright, who called the proposal an "exciting idea," said residents are looking forward to the proposal.

The Mission Hill housing development is slated for a complete physical renovation if the proposal is accepted.

Wright said the size of this grant would allow for a "comprehensive job" renovating, something that was not possible with smaller federal grants in the past.

However, for some, enthusiasm for the possible renovations is tempered by fear that the funds may not be managed well. "Who's going to see how the money is spent?" said Howe.

Harvard Reaction

The Mission Hill development borders the Longwood Medical Area, which includes the Harvard School of Medicine, School of Public Health and Dental School.

In the past, there has been friction between the developing Longwood Medical Area and the economically depressed area of Mission Hill.

Kevin A. McCluskey '76, director of community relations for Harvard, said Harvard's relationship with the housing development is "positive."

McCluskey said the University had no formal position on the proposal but supported any efforts to improve Mission Hill