For the sixth consecutive year, Hamilton County has not been awarded federal tax credits for affordable housing projects.
The Indiana Housing and Community Development Authority announced the 2017 recipients for the highly competitive program on Thursday. Out of 62 development proposals, 16 were selected to receive the federal low-income housing tax credits.
Hamilton County Area Neighborhood Development’s proposed Noblesville Granary Elevator and Lofts was put on a wait list with four other projects, including two that would be in Hamilton County.
Given the uncertainty in the equity market, the state did not award all of the available tax credits in case funded projects need to request more. Tax credits not reserved by mid-September would be awarded to those on the waitlist.
HAND’s project, which is first on the wait list, would include 56 one- and two-bedroom affordable housing apartment units in a three-story building with 10,000 square feet of commercial space that would be leased at below-market rates to attract startups. It would be located at the old grain elevator site at Mulberry and Eighth streets.
Rent for the apartments would be based on the tenants’ income—about 60 percent of the units would be $625-$901 per month and 40 percent would be $375-$601 per month.
It is expected to cost $10.5 million. HAND is seeking $8.4 million in tax credits over 10 years.
The tax credits are awarded to developers as a way to incentivize private investment in affordable housing. Investors buy the credits, generating revenue to fund projects.
HAND Executive Director Jennifer Miller said even if the full amount of funding isn’t awarded, the project could be adjusted to reduce the cost.
“There is a still a strong likelihood that the project will move forward,” Miller said in a prepared statement.
HAND was denied the tax credits for the granary development last year, which stalled the project.
As a result of the earlier delay, the North Central Co-Op, which owns the 2-acre property, finished the demolition of the old grain elevator and cleared the site. HAND had been trying to preserve as much of the structure as possible.
The grain elevator was built in 1904 and had been used to store wheat for decades.
The other Hamilton County projects on the wait list include a 63-unit senior apartment community in Noblesville and redevelopment of the old Adams Township school in Sheridan.
HAND applied for tax credits for the Sheridan project, known as Blackhawk Commons, last year, but was not successful. The not-for-profit is now consulting on the project, which is being led by Blackhawk Commons Limited Partnership.
The $8 million development would redesign the vacant school into 40 affordable housing units and preserve the gymnasium.