A project to house adolescent mental health services in a new building on the Martha’s Vineyard Community Services campus has taken another step forward.

The Martha’s Vineyard Commission voted late last week that the new building will not need a formal regional planning review. But other hurdles remain for the fledgling youth services group.

The Islandwide Youth Collaborative must still find a way to pay for construction of the building, and clear two regulatory boards at the local level.

The group, which is calling itself IWYC for short, consists of representatives from the schools, Community Services, the YMCA, the Youth Task Force and the hospital, as well as private practitioners.

The agencies began meeting in fall 2013 to discuss gaps in mental health and substance abuse services for adolescents. This past October, they received major funding from the Peter & Elizabeth C. Tower Foundation to hire case managers and provide specialized training to Island clinicians.

The grant will provide $300,000 a year for two years, but the funds will not cover the cost of building the IWYC center, estimated at $600,000 and planned for a lot adjacent to the early childhood center at Community Services.

As a result, Community Services has applied for a grant from a new philanthropic fund, MVYouth, established last summer to benefit children. If it is awarded, the grant would go toward construction costs, but fund-raising will also likely be needed, said Nell Coogan, director of operations and community relations at Community Services.

If the grant application is not successful, Community Services will find another way to finance it, whether through fundraising or taking out a mortgage.

“We need to house this vital program,” Ms. Coogan said.

Designed by Squash Meadow Construction, the modular building will be 2,400 square feet and will contain six offices, a kitchen, family room, waiting room and a conference room.

IWYC case workers will be assigned offices within the building, but it won’t be a clinical base, Ms. Coogan said. Therapeutic work will still take place in the Island Counseling Center, just a few steps away.

In addition to facilitating coordination between the various IWYC members, the center will also accommodate family meetings, intake sessions, and workshops.

Modular construction will allow the project to proceed efficiently without much disruption to other Community Services activities, Ms. Coogan said.

“We can’t really shut down our services to allow for construction,” she said.

Community Services leases three acres from the regional high school, and the new building will be positioned in the southwest corner of the property, closest to the early childhood center.

The project necessitates the clearing of 17 trees and the removal of a small shed.

The center will share parking with the existing facilities and will add nine spaces to the lot.

In 1986, the MVC approved a development of regional impact (DRI) for the three buildings that are the Community Services campus across the road from the high school.

Last Thursday, the MVC voted unanimously to allow the addition of a fourth building to the DRI without a public hearing.

“This is a use which is entirely consistent with the whole original plan of the project, and therefore you don’t really have to have a public hearing to vet it because it’s consistent with the original plan,” said commissioner Linda Sibley.

In addition to the Oak Bluffs planning and zoning boards, the regional high school will also have to sign off on final plans.

Construction is planned to begin in the spring and be completed by fall, in time for the start of the academic school year.

Plans and more information are available at mvcommission.org.