The Navy Yard Metro station will get nearly $20 million in improvements and the District an opportunity to provide affordable housing under a development package approved Thursday by the Metro’s Board of Directors for the area near the new Nationals stadium.

The board approved a new west entrance on M and Half streets in Southeast which will be integrated into a new 275,000-square-foot office building to be constructed above station.

As part of the contract, the board is requiring the developer to allow the District an opportunity to buy up to 20 percent of the housing in an adjoining 450-unit residential and retail property for low and moderate-income homes.

“First the developer must comply with any applicable affordable housing law [in the District]. Beyond that — in addition — the District of Columbia is entitled to purchase affordable housing units up to 20 percent of the total residential capacity for both low-and moderate-income units,” said Jim Graham, D.C. council member and Metro Board member.

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Graham proposed using a portion of the federal transit funding for the Metro station makeover to purchase the affordable housing.

“This is an integral part of dealing with the stadium,” he said.

The new entrance will be modified to accommodate 15,000 riders per hour coming through the fare gates. The entrance on M Street and Half Street in Southeast can currently handle 5,000 customers an hour, said John Thomas, Metro’s director of construction.

The fare gates will be moved to the street level, an elevator and a staircase will be added to handle the additional capacity, said Dan Tangherlini, Metro’s interim general manager.

Metro staff are considering making the west entrance one-way on game days to allow a greater flow in and out of the station.

The developer, MR Ballpark 5, would rehabilitate the entrance as it constructs the office building that will sit on top of the new entrance, saving money for Metro, Tangherlini said. If the project is not completed by opening day 2008, the developer will be required to fund a shuttle service for customers, he said.

cgoodman@dcexaminer.com