At a time when many developers are finding it hard to secure financing for their projects, the Pittsburgh Downtown Partnership may have the remedy at hand, at least for some of them.

The partnership launched a $3.5 million revolving loan program yesterday designed to assist property owners and developers who are looking to convert vacant or underused upper floors of Downtown buildings into apartments or condominiums.

"These projects are hard to finance in the conventional sense. This is that extra help, the extra support, that will help to get the projects done," said Patty Burk, the partnership's vice president of housing and economic development.

Loans are available for projects in buildings up to eight stories high. Under program guidelines, developers or building owners could be eligible for loans up to half the total project cost, $500,000, or $75,000 per residential unit, whichever is less of the three options.

Money can be used for sprinklers, elevators, stairs, roofs or for other residential-related purposes. Ms. Burk said the partnership expects to have three applicants for loans within the next couple of weeks.

All three are Downtown building owners who have vacant upper floors and "see the value in making that space more profitable," Ms. Burk said. She would not identify the potential applicants.

Ms. Burk expects demand for the loans to be strong. She said the interest in residential housing Downtown, particularly for more moderately priced units, has far from peaked.

Based on partnership surveys, more than 95 percent of rental units Downtown are occupied, Ms. Burk said. Millcraft Industries has a list of 300 people interested in renting the 46 apartments to be available this summer at Market Square Place, the former G.C. Murphy property. Some units will rent for as low as $700 a month.

At the Century Building on Seventh Avenue 125 people are on a waiting list for 60 apartments which will lease from $500 to $1,250 a month. Eight have already been rented, with the first move-ins in July.

Ms. Burk also sees a "pent-up demand" for more moderately priced condominiums Downtown. Most of those that have been developed so far have been priced from $300,000 to more than $1 million.

She is hoping the loan program could provide some incentive for building owners to develop more moderately priced units and add to the variety in the Golden Triangle. Part of the problem now is that Downtown construction costs generally are steeper than in the suburbs, necessitating the higher prices for units.

The partnership hopes to close on loans for four projects by the end of the year.