Cost overruns and a request for additional handicapped units has jacked up the cost to build 34 public housing apartments in Farrell.

The Mercer County Housing Authority board said Wednesday it will not help developer Ralph A. Falbo Inc., Pittsburgh, make up the shortfall.

Falbo asked the authority for a $339,000 bridge loan commitment to cover the expense brought on by inaccurate estimates of construction costs and the authority's request to build two more handicapped accessible units.

The project is part of the HOPE VI redevelopment of the section of Farrell around the former Steel City Terrace public housing units, which have been torn down.

The loan only would be taken out if the Pennsylvania Housing Finance Agency, which is being asked to fund the majority of the project, does not provide additional tax credits to cover the extra cost.

Authority Executive Director L. DeWitt Boosel said the only place the authority could get the money from was its annual modernization allotment from the federal government, which is about $1.1 million a year.