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Real Estate & Retail

Downtown senior housing project awarded tax credits

March 13, 2014

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.

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