I had been searching at creating a folder structure such as this

htdocs
|--app
   |-- myProject
       |-- index.php
       |-- settings.ini
       |-- .htaccess (project)
|--core
|--index.php
|--config.ini
|--.htaccess (main)

I decreased some global .htaccess rules within the primary .htaccess file however i wanted some project specific rules within the project .htaccess

It is possible to way I'm able to have both .htaccess fils co-exist? or possess the project .htaccess file incorporated within the primary .htaccess?

I understand in apache you can files, because during my httpd.conf i've an include statement to incorporate .conf files outdoors from the directory.

On my small server I've precisely what you've here. One .htaccess apply for the htdocs folder and something for an additional site.

I didn't have any difficulty, it appears the .htaccess for that project overrides the .htaccess for htdocs.