Downtown senior housing project awarded tax credits

March 13, 2014
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A downtown senior housing development is one of three Indianapolis area projects to receive federal tax credits doled out annually by the Indiana Community & Housing Development Authority.

Illinois_street_whitsett_elevation_225pxAffordable housing developer TWG Development LLC was awarded $836,756 in credits, as well as $450,000 in additional state funding to help finance its $9.6 million project to convert a vacant building at 1352 N. Illinois St. into 63 affordable senior-housing units.

The awarding of the federal tax credits follows approval in October from a city zoning board allowing TWG Development to make the conversion. Plans call for the construction of a four-story addition to the south of the building, bringing the total square footage of the project to 71,300 square feet.

Built in 1929, the four-story structure formerly housed the Fame Laundry Co. TWG Development purchased it from the locally based Michaelis Corp. home-restoration company.

The architect on the project is local firm DkGr Architects.

TWG Development, formerly known as The Whitsett Group, has developed about 25 affordable-housing projects throughout the state but is expanding into market-rate developments. Downtown, the company has started work on a couple of projects.

The $16 million Penn Street Tower, formerly known as the Consolidated Building at 115 N. Pennsylvania St., calls for 98 units, and the $11.25 million Pulliam Place, a redevelopment of The Indianapolis Star headquarters property at 307 N. Pennsylvania St., calls for 500 units.  

Besides TWG Development’s senior housing development, two other area projects received federal tax credits late last month. A  Beech Grove senior housing development got $823,908 in credits and $400,000 in state funding; and a Lawrence senior housing project received $823,135 in credits and $300,000 in state funding.

Applications for federal tax credits are due each November. Fifteen projects throughout the state were chosen in the latest round to receive a total of $12.1 million in credits. Overall, the state’s housing authority received 44 applications requesting a total of $36.8 million in credits and more than $15 million in supplemental state funding.

The authority administers the federal program that awards tax credits to developers to renovate, acquire or construct affordable rental units. A dollar-for-dollar credit provides an incentive for private developers and investors to provide low-income housing. By reducing a developer's federal tax liability, or by selling tax credits to investors, the program can help cut the cost of development.

  • Must be sweet
    Must be sweet to be TWG (Whittsett). Erect a bunch of garbage projects across town and get free money for it.
  • Get some glasses
    Have you seen TWG projects? Far from garbage! They are beautiful and well-managed. TWG is doing wonderful things for our city!!
  • TWG's Excellent Reno's
    Another one in favor of TWG's excellent job on their renovations around town, seriously, drive past 800 N Capitol or 333 Penn. They obviously treat their projects with respect, and much of the money comes from their own pockets. If anyone has a problem with garbage projects made for a profit read the Ozdemir article.
  • progress on TWG developments
    Was out walking downtown on Tuesday before the snow returned. Glad to see progress on two of the TWG projects listed in this article. Asphalt has been removed on the Indy Star parking lot at the corner of Delaware and New York (Pulliam Place). Equipment was also covering the sidewalk in front of the Consolidated building on Penn (Penn Street Tower). Let's bring more people downtown!
  • Huh?
    Obviously, Free Money is another of those who LOVE to come on these threads and complain about things of which they know ABSOLUTELY NOTHING. The TWG projects are actually very nice and a big part of the boom in downtown residential. Keep up the great work TWG.
  • Getting
    TWG seems to be getting better at doing renovations. Some of their earlier affordable renovation projects will be lucky to last 15 years, especially the windows. I am a fan of the more recent work. Good partners in Ambrose & DkGr...
  • Just Curious
    Please define "affordable"?
  • Affordable
    Section 42, which is what these credits are, bases rent on income. So, depending on the number of people in a household, they cannot make above a certain amount to qualify, and the levels can be different depending on the area. This is not Section 8 housing, where the low income are essentially given vouchers to pay for their housing, these are the working poor who need a little help to pay the rent. The 2014 HUD Income Limits for Marion County, single adult: Low (80% of Median) - $36,050; Very Low (50% of Median) - $22,550; and Extremely Low (30% of Median) - $13,550.
  • Affordable
    Most Sec. 42 tax credit developments are limited to persons earning 60% or less of AMI, not 80%. So for a single, the limit is closer to $30,000.
  • TWG
    Looks like a nice project to me. TWG has been improving the quality of their work lately it appears. However, I still HATE the drive thru they are putting into their project at the old IndyStar site.
  • Like It!
    I think TWG is doing another great restoration project. If you drive by this building today they are really keeping the best of the historic look and blending the new construction in. Hopefully this will end up being another great project like 800 Capitol.
  • Converting Vacancies
    Bottom line is I'm glad the city is doing SOMEthing with an abandoned building. This city has too many of those already.
  • Senior Seeking Affordable Downtown Housing
    I will be 62 in September, and because of health reasons, I need to at least semi-retire. I want to live downtown, because I don't want the expense of a car. Can you direct me as to how to find affordable downtown housing?

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