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The Indiana Housing and Community Development Authority chose five central Indiana housing projects in its most recent round of tax credit funding.
The IHCDA’s selection of the projects in Anderson, Indianapolis and Noblesville were among 17 to be awarded Low Income Housing Tax Credits, totaling more than $180 million in value over 10 years for the development or preservation of 776 total affordable housing units.
The projects were selected from 33 applicants across the state, and include multiple supportive housing projects for individuals experiencing homelessness, some age-restricted units and a dozen developments focused on families. IHCDA tends to prioritize developments focused on offering tenants access to supportive services, as well as mass transit, retail, healthcare services and employment opportunities.
“These low income housing tax credits represent a significant commitment to our state’s infrastructure,” Lt. Gov. Suzanne Crouch said in written remarks. “The selected developments will directly address the needs of our workforce and will bring hundreds of affordable housing units to Indiana cities, towns, and rural areas.”
The federal Low-Income Housing Tax Credit program subsidizes the acquisition, construction, and rehabilitation of affordable rental housing for low- and moderate-income tenants.
The federal government issues tax credits to state and territorial governments. State housing agencies then award the credits to private developers of affordable rental housing projects through a competitive process. Crouch oversees the IHCDA in an administrative role and worked with the agency’s board of directors and a selection committee to determine tax credit recipients.
Developers generally sell the credits to private investors to obtain funding.
The projects in central Indiana account for 224 units, consisting of single family homes and apartments. Together, they comprise 502 bedrooms and $82.4 million in development cost. One of the projects includes an adaptive reuse component.
Here’s a look at the projects that were selected in central Indiana:
Canal Village III, developed by BWI Inc., $1.2 million in tax credits annually over 10 years
Costing $13.5 million, this 33-unit single-family home project is an addition to an existing development of the same name near 27th and Clifton streets. The project is the second phase of a 37-home development that is expected to be complete in the coming months.
Like the first phase, the new homes will range from 1,300 to 1,500 square feet, each with three to four bedrooms. They will be offered on a rent-to-own basis, selling for around $70,000 to $100,000.
Gary Hobbs, president of BWI, said the project has an estimated 16- to 18-month buildout, with plans to break ground by June.
Central@29, Community Builders, $1.2 million in tax credits annually over 10 years
After multiple attempts to secure funding, a 56-unit family and supportive housing project the Fall Creek neighborhood is moving forward. The $18.1 million Central@29 project is expected to be a four-story building that wraps around the southeast corner of the cross streets after which it is named, just north of Fall Creek Parkway, with units that range from a 675-square-foot one-bedroom to a three-bedroom setup with 1,200 square feet. The project had been considered at least three times previously by the IHCDA, but it wasn’t until this round that it secured funding. Individuals and families making $17,000 to $70,000 per year will be eligible to rent at the property.
The project is also receiving $1.5 million from the Housing Trust Fund and a $750,000 loan from the state’s development fund.
Christamore Court Apartments, T&H Investment Properties, $940,000 in tax credits annually over 10 years
A rehabilitation of an existing multifamily project at 2330 W. Michigan St., this project is expected to cost about $12.5 million. The effort will preserve about 40 age-restricted units, which were first built in 2005.
Christamore Court has one- and two-bedroom units that start at 675 square feet and 825 square feet, respectively. The project received a $750,000 loan from the state’s development fund.
Home Court, BWI Inc., $1.2 million in tax credits annually over 10 years
A 44-unit project adjacent to the Wigwam project that’s repurposing the former Anderson High School gymnasium is moving forward. The project at 1333 Lincoln St. is a $12.9 million joint venture between BWI and Building and Impacting Communities Inc. It’s part of a larger redevelopment effort surpassing $70 million at the former athletic complex that began in 2011.
The project will have 68 total bedrooms, between one- and two-bedroom units.
Townhomes at Stony Creek, T&H Investments, $1.2 million in tax credits annually over 10 years
Proposed for a five-acre tract at 1255 S. 16th St. in Noblesville, this project is intended to offer a new affordable housing for Hamilton County residents. The $14.5 million project would consist of 51 single-family, two-story townhouses offering up to 1,400 square feet across three bedrooms and 2-1/2 bathrooms.
Noblesville-based Family Promise of Hamilton County, which provides services for people experiencing homelessness and housing insecurity, would work with people living at Townhomes at Stony Creek.
The project is also receiving $750,000 from the Housing Trust Fund and a $750,000 loan from the state’s development fund.
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224 units comprising 502 bedrooms at a total cost of $82.4 million = $164,000 per bedroom. Seems a bit pricey, doesn’t it?